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Bonds remain under pressure as talk of more stimulus package to revitalize a struggling U.S economy continues to gather pace. The yield curve is steepening as investors await big borrowing under the Democrat’s regime, who now control both houses. Rising Yields The U.S 10-year debt is up by more than ten basis points for the
Record-low interest rates’ triggered by the COVID-19 pandemic is the catalyst fuelling activities in the bond markets. U.S states, cities as well as schools, and other issuers have turned to municipal bonds in a bid to raise much-needed capital to navigate the challenging environment owing to COVID-19. Muni Bonds Surge Likewise, the amount of muni
Gold futures started Monday on a high note seeing 2% gains and putting them at a level that would be the best annual return in a decade while the United States Dollar fell to its lowest value in about two and a half years. The high value of gold bullion is likely because of
Treasury bonds are once again showing signs of finishing the year on a high after a roller-coaster 2020. After initially plunging to record lows in the first quarter of the year, they have bounced back at the back of a wave of stimulus packages by policymakers. Bonds Rally The 10-year treasury yield was up by
It’s not the best time to own bonds, but time to shore up cash buffers. Those are sentiments echoed by the head of BlackRock’s $2 trillion fixed-income division Rick Rieder. The world of depressed interest rates means the risk-reward in the fixed income sector, especially bonds is not the best for income-focused investors. Cash Over
Even with an expanding economy in November the United States appears to be slowing even more as November was the worst on record yet for new coronavirus cases and the effects of that just keep rippling through the system. A measure that consolidates multiple measures to show total growth was at its lowest number since
Struggles in the $4 trillion Chinese domestic credit market are starting to creep up. Reports that a major Chinese clothing maker has failed to repay a $153 million bond signals everything is not well in one of the biggest bond and credit markets in the world. Chinese Bond Market Defaults Shandong Ruyi Technology is the
Treasury prices dropped on Monday, leading to a rise in the yields, as investors opened the week by shifting away from the traditional safe-haven assets toward more risky items as the start of the COVID-19 vaccine rollout has begun and with more fruitful talks of a compromise spending relief by lawmakers seems more likely.
It looks like Congress may be buying itself more time to reach a deal after the House today passed a bill that would provide one more week of funding to the government. While the Senate still has to pass the bill, this would prevent a government shutdown, which would otherwise occur on Saturday if no
Europe’s electric scooter market is heating up even as the U.S market continues to falter amid the pandemic. Institutional investors are increasingly jostling for positions in the burgeoning segment that threatens to transform the traditional transport industry. E-scooter Financing Deals The biggest beneficiaries of increased institutional investor’s interest are rental startups that continue to rake
If you’ve been fortunate enough to work in a place that offers a 401(k) you should consider yourself lucky. It appears that many companies are going to end that perk, if they haven’t ended it already. Posts of it on job searching boards like those on Glassdoor or on Social Media show that there is
The stock market saw another slow increase today with the three major markets increasing by less than 0.9% each. The Dow Jones increased 0.83% to close at 30,218.26. The NASDAQ rose 0.70% to close at 12,464.23 and the S&P 500 closed up 0.88% to finish at 3,699.12. STOXX Europe also saw a slight increase of
We are into the final month of this crazy year of 2020, one that many people will be glad is over and hope that 2021 will be much better. If you’re an investor though you may have already had a pretty decent year after the drop off in the spring. Considering how the coronavirus pandemic
Default on Chinese bonds is on the rise, all but arousing concerns among bond investors. Demand for such bonds has taken a significant hit in the wake of the U.S government hitting a number of state firms with sanctions. November saw the lowest number of issued bonds in seven months by Chinese companies, down by
After a rocky start to the week the stock market seems to be looking up yet again with the three primary New York markets reporting gains for the day. The Dow Jones saw an increase of 0.63% to close at 29,823.92. The NASDAQ saw an increase of 1.28% to close at 12,355.11 and the S&P
Analysts from Morgan Stanley investments have named a set of stocks known for their cyclical nature that will likely be on the upswing after a coronavirus vaccine has been made available enough to lead to a recovery. In a note sent by equity analyst Matthew Garmen of Morgan Stanley said that “The valuation case for
Late Thursday afternoon the United States Treasury Secretary Steven Mnuchin wrote a letter to the Federal Reserve that his department won’t be extended and that it will expire fully at the end of the year. In the letter Mr. Mnuchin said that the Federal Reserve’s lending program for small and medium businesses would be terminated.
Hopes of a faster economic recovery are the catalyst behind U.S treasury yields’ recent spike. The rebound hopes have been affirmed by Moderna unveiling a COVID-19 vaccine that is 95% effective. Even as U.S Treasury yields show signs of edging higher, Chinese Bonds remain under pressure. Treasury Yield Rally The Yield on the 10-year Treasury
U.S Junk bonds are on the receiving end in the wake of Pfizer announcing that its COVID-19 experimental vaccine is 90% effective in combatting the virus. The junk bonds fell by 45 bases from Friday close to 4.53%, the lowest level since June 2014. Junk Bonds Sell-off The implosion came amid concerns that the Federal
Activities in the bond market have been heating up, ever since the U.S central bank cut interest rates to record lows. The low funding costs on offer amid high investor demand has allowed companies to raise billions of dollars in new debt in the trillion-dollar bond market. Likewise, finance chiefs have turned to bond proceeds
The bond market has taken a significant beating in the wake of the Federal Reserve cutting interest rates to record lows. With the central bank unlikely to raise interest rates anytime soon, things do not look good for the once-booming sector. Proposed regulatory changes now threaten to compound woes in the ailing housing-bond market. Housing
The near-zero nominal interest rate has made income investing a little bit challenging for investors. Companies, on the other hand, have used the opportunity to raise capital, taking advantage of the low interest rates. Likewise, the Federal Reserve confirming it would purchase junk corporate bonds has all but continued to fuel investors’ appetites for bonds.
Jitters in the $1.5 trillion high-yield corporate bond market, is one of the factors that investors should watch out for when trying to gauge sell-off in the stock market. Tightening credit and capital outflow in the bond market has always been an early warning sign for investors to start taking flight from riskier assets altogether.
Climate change is not a facade but an issue that could hurt countries finances if necessary measures are not taken. Investment firm BlackRock has unveiled a new sovereign bond ETF that weight’s countries based on their level of risk to climate change. The new ETF comes amid growing calls for the fund industry to do
Temasek Financial is taking advantage of the record low interest rate environment with the issuance of three long-dated U.S Dollar bonds. The Temasek subsidiary is to issue a ten year, 301/2, and 50-year bonds as it moves to raise about $25 billion from the international markets. Temasek Bonds The U.S dollar bonds are to be
The bond market is heating up as people continue to reassess risk in the aftermath of the pandemic. Bond spreads have increased significantly amid a spike in bond issuance at the back of strong demand as people continue to shrug off the low interest environment. Vanguard is the latest investment firm to take advantage of
The bond market has come under immense pressure in the wake of policy maker’s worldwide cutting interest rates to record lows in response to a challenging economic climate owing to COVID-19. Amid the low-interest environment, investors have continued to flock the market in a bid to hedge against uncertainties in the global economy. Transamerica Asset
Chinese firms are increasingly feeling the effects of escalating tensions between Beijing and Washington. While the focus has been on TikTok and Huawei in recent months, China National Chemical Corp is the latest, to feel the fallout effects. The state-owned firm is struggling to elicit strong demand on unveiling $3 billion worth of bonds. China
U.S corporate debt has hit a new milestone and could pose significant dangers should the economic downturn persist. A new report by Bank of America analysts indicates that U.S corporations owe creditors as much as $10.5 trillion, nearly half the total U.S GDP. U.S Corporate Debt The massive debt holdings in the form of bonds