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.
Bonds
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
Rising yields is the latest headache that the U.S Federal Reserve faces as it tries to reinvigorate an economy struggling to bounce back from the shackles of COVID-19. In recent days long term yields have risen to two-month highs, all but threatening economic growth. Rising Long Term Yields The 30-year had its finest run yet,
Tuesday took the markets higher across the board, with the Dow Jones Industrial Average climbing 0.76%, the Nasdaq up 1.39%, and the S&P 500 rising 0.75%. The European Stoxx 600 was down 0.35% with travel and leisure shares among the worst performers. Amazon continues its growth and flirted with a share price over $3,500 today,
Thursday markets were mixed and the Dow briefly turned positive for 2020, before slipping back down before the markets closed. The Dow ended up being up 0.6%, while the S&P 500 inched 0.2% higher, and the Nasdaq fell 0.3%. The Stoxx Europe 600 Index fell 0.6% to 370.72, this was the biggest fall in a
US Treasury yields are steadily feeling their way towards the month’s high. Data released by the Department of Treasury shows that yields of all long-term notes are climbing. Both the 20-year and the 30-year notes registered four basis points higher each by the end of business on Tuesday. Short-term Treasuries seem to be moving in
A pretty level Thursday in the markets, with the Nasdaq leading the charge, up 1.1%, while the S&P 500 gained 0.3%, and the Dow Jones climbed 0.2%. The Stoxx 600 European index dropped 1.07%. The Labor Department said Thursday that initial weekly jobless claims came in above 1 million, surpassing a Dow Jones estimate of
Global equities continued to race higher as the earnings season came to an end. The bond market also remains a buzz of activity as investors continue to shrug off record low interest rates on the Federal Reserve moving to bolster liquidity levels. Equities and Bonds Outlook Chinese stocks started the week on a roll rallying
The markets went for a mid-week rally Wednesday, with the Dow Jones closing up 1.05%, the Nasdaq climbed 2.13%, while the S&P 500 gained 1.4%, but fell just shy of hitting a record close. The European Stoxx 600 rose 1.11%. Facebook, Apple and Amazon enjoyed climbs of 1.4%, 3.3% and 2.6% Wednesday, while Netflix and
Bonds have been badly hit in the wake of the Federal Reserve printing trillions of dollars to calm the markets and revitalize economic growth. The central bank cutting interest rates to near-zero has seen investors shun bonds given the reduced rate of return. However, that does not mean it is all doom and gloom in
Alphabet Inc. (NASDAQ:GOOGL) is set to take advantage of low borrowing costs in the bond market on yields plunging to record lows. The tech giant has completed a $10 billion bond sale, raising cash to support groups hard hit by the COVID-19 pandemic. Alphabet Bond The cash-raising spree comes on the tech giant’s heels, reporting
The markets sent mixed messages to close on Thursday, which was a big earnings day in the tech sector. The Nasdaq closed 0.43% higher, while the S&P 500 was down 0.37% and the Dow Jones Industrial Average was down 0.85%. The Stoxx Europe 600 Index saw 2.2% dip. Apple, Amazon, Alphabet and Facebook jumped in extended trading as results
Junk bond investments are on the rise as investors continue to shun the risk that most of them present. The buying spree has come on the back of a challenging market environment that continues to deteriorate in the aftermath of the COVID-19 pandemic. Record low-interest rates have done little to curtail investor sentiments on junk
Editor’s Note: Due to issues with the Call Put Strike Podcast hosting service, we are not hosting the daily podcast today. Many of you may have noticed issues with truncated episodes last week and we apologize for the inconvenience it may have caused. The S&P 500 saw itself down 0.65% on Tuesday with the Dow
The Nasdaq found itself closing the week 0.9% lower on Friday, while the Dow Jones and S&P 500 both dipped 0.6% as we headed into the weekend. The Stoxx Europe 600 Index declined 1.7% to 367.29, which is the lowest in more than a week on the biggest drop in four weeks. Gold topped $1900
Treasury Yields are being hammered as uncertainty continues to grip the capital markets amid the havoc-causing COVID-19 pandemic. The 10-year Treasury note and the 30-year Treasury bond are on a downward spiral now that it has become clear that a new round of fiscal stimulus is highly needed to stabilize the struggling U.S economy. Bonds
Thursday saw all markets close in the red. The Dow Jones was down 0.5%, while the Nasdaq dropped 0.7% and the S&P 500 dipped to 0.3%. Amazon had a slightly down day by 0.3%, which left it sitting just below the $3,000 mark at $2,999.90. Microsoft and Apple both sunk by over 1%. Netflix was
The U.S bond market has always been bigger than the stock market, and the trend is not expected to change anytime soon amid a dovish outlook in the sector. Immediate data indicates that over $40 trillion is invested in the bond market against $30 trillion in the stock markets. Bond Markets Outlook Bonds have always
The cost of living has been steadily increasing every year. This is due to many factors, one of which being volatile market conditions. Inflation is tricky to deal with because there’s no predicting how much it will increase from one year to another. However, there are a few methods that you can use to protect
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