Hints and tips:
Related Special Reports
...The Turkey Wealth Fund notched up $7bn in orders for its $500mn US dollar-denominated bond deal on Wednesday, according to a term sheet seen by the Financial Times....
...This means that if a bank lends cash to a hedge fund in exchange for temporary ownership of a Treasury bond, and the value of the bond decreases just as the hedge fund defaults on the trade, the bank loses...
...Fund managers say the flows have come from a broad range of retail and institutional investors both in the US and abroad, who have been drawn to the chunky yields on offer....
...The Central American nation priced $1 billion in debt due in 2030 at 89.923 cents on the dollar to yield 12%, according to people familiar with the matter....
...However, in the prior decade of 1995-2004, when 10Y US treasury yields averaged over 5%, we count 120 bonds, from 18 distinct sovereigns, issued at over 10% coupons....
...And yet: Passive bond funds have seen cumulative inflows of nearly $2.8tn since the beginning of 2007....
...Prices for US Treasuries dropped immediately after the data release, pushing yields higher....
...Last autumn, Treasury yields hit a 16-year high....
...Many had been running large bets against bonds, which rocketed in price in a flight to safety and as investors questioned how much further the US Federal Reserve could raise interest rates....
...This is an audio transcript of the Unhedged podcast episode: ‘High-yield bond bonanza’ [MUSIC PLAYING] Ethan WuCorporate bonds — debt issued by companies — they’re red-hot right now....
...fund....
...Apparently some German investors had loaded up on them simply because they offered juicier yields than Uruguay’s dollar bonds even after hedging for the different currencies....
...US debt is a particular concern. High and volatile US treasury yields — which underpin pricing in financial markets — risk adding to global rate pressures....
...EFPR Global data indicates that net fixed income fund inflows have now crossed the $100bn mark — and, luckily for all bond managers, active flows are outpacing passive ones so far in 2024....
...But its scintillating rush higher has puzzled many analysts since bond yields and the US dollar have not moved enough to merit such a move....
...Private investors have piled into UK government bonds this year to lock in attractive yields as the Bank of England has kept interest rates at a 16-year high....
...Tell us about that. Bassman: MTBA buys mortgage bonds priced at 98 or 99 [cents on the dollar]. They have a coupon of around 6 per cent....
...Banks hired by the Turkey Wealth Fund began pitching investors on a US dollar-denominated bond this week and started taking orders on Wednesday, according to documents seen by the Financial Times....
...Perhaps counter-intuitively, investors should continue to embrace bonds, which look attractively priced. We continue to favour high-quality sovereign debt, including US Treasuries....
...Think about what a high-yield bond investor was seeing at the end of October 2023: some good inflation news, falling Treasury yields, 9.5 per cent HY yields, dollar prices in the 80s [cents on the dollar...
...Others are calling for rich countries to use reserve assets dispensed by the IMF, the special drawing rights (SDRs) which equate to hundreds of billions of US dollars, to back more bond sales by the World...
...alike,” said Mike Riddell, a bond fund portfolio manager at Allianz Global Investors....
...Kenya ultimately sold $1.65bn of the bonds, which are designed to fund infrastructure....
...That compares with flows in to European-listed ETFs investing in US high-yield bonds of just under $200mn....
...High-yield bond ETFs gathered $11.6bn globally, including $10.8bn in US-listed ETFs, according to BlackRock....
International Edition