Over the past year bonds hit hard by COVID-19 have rallied and rewarded investors who took a gamble. One prime example is cruise company Carnival Corporation (NYSE:CCL) which pawned ships to borrow around $4 billion from investors asking an 11.5% interest rate. Interestingly, the yield on the binds has dropped below 4% as bonds increase
Bonds
In the last three months, companies issued $140 billion in the junk bond market in the US, surpassing the record rush for cash in Q2 2020 when groups rushed to fortify their finances to survive the impacts of the COVID-19 pandemic. Investors taking advantage of low rates to invest in high yield bonds According to
Bonds are under immense pressure amid growing expectations of accelerated economic recovery. Bonds of highly rated companies in the US have lost an average of 5.3% since the start of the year, marking the second-worst start to a new year since 1996. Bonds Sell-Off The sell-off in the bond market comes amid growing expectations that
After a sell-off last week that pushed borrowing costs higher, US bonds have steadied as European markets ticked up. Investors are now looking forward to the important Federal Reserve meeting expected later this week. Federal meeting to define where yield will trade Interestingly, the benchmark ten-year Treasury yield, which is moving in the opposite direction
There have been growing concerns gripping markets as Treasury yields keep rising, but, for US companies, it is clear that the right time to borrow is now. This comes as inflation fears continue to increase despite the economy seemingly stabilizing. Companies fear they might miss on borrowing window The rise in long-end rates to the
It has been a tough week for US treasury bonds after a gentle decrease in prices became a rush. With government bond yields dropping to low levels, investor returns for insurers and pension funds have been wiped out. Inflation worries pushing bond yields down Growing inflation concerns have been pushing Treasuries down for almost a
Bond yields continue to be performing well as optimism of an economic recovery starts to grow. The higher bond yields reflect economic optimism and have fuelled the buy-the-dip mentality with investors optimistic that vaccinations will spur an economic recovery. On Tuesday, Boeing Co. (NYSE:BO) borrowed $9.8254 billion in the corporate bond market via three-part financing
The stock market starts the week under some pressure as yields from bonds rise with the hopes of a global economic recovery is on the horizon. The hopes have been raised with the continued vaccine rollouts around the world and the $1.9 trillion stimulus package from the Biden Administration. THe yield of the benchmark 10-year
In a note to clients, JPMorgan has indicated that the curb on US investors owning securities from various Chinese firms will affect bonds worth $60 billion and led to huge outflows due to forced selling. Ban of US Investors on Chinese securities to affect $60 billion in bonds The Trump administration issued an executive order
Apple Inc. (NASDAQ:AAPL) and Alibaba Group Holding Ltd (NYSE: BABA) have affirmed it is the perfect time to tap the debt market and raise capital. The two tech giants have carried out a series of bond issuance, taking advantage of record-low interest rates to raise cheap capital to finance buybacks as well as working capital.
Record low interest is the catalyst fuelling bond issuance among corporations. Companies are increasingly taking advantage of the reduced cost of borrowing to raise capital in the bond market, to finance various projects as well as pay underlying debt. Apple Inc. (NASDAQ:AAPL) is the latest to tap the bond market. Apple $14 Billion Bond The
Investors are increasingly turning to high-grade bonds in a bid to secure long-term income streams as equity markets come under pressure. Investors have continued to shrug off the record low-interest rates, depicted by capital inflows into a number of high-grade bond offerings. Airplane Leasing Bonds Investors’ eyeing opportunities in the embattled airline industry, hard hit
The Chinese bond market might as well be providing early warning signs. Bond defaults edging higher with cash-starved developers breaching central bank red lines for borrowings is already triggering concerns in the $15 trillion bond market. Chinese Bond Market Woes The fact that only 6.3% of Chinese developers can comply with set red line limits
Advertiser Disclosure StocksForYou is not your typical stock recommendation service but one that offers the best and timely stock recommendation for investors eyeing high returns. The service has mostly lived up to expectations on helping beginners focus on the right things in the market, as was the case in a recent newsletter from November that we
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
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