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...PetVet carries high-risk debt ratings, with S&P Global last year projecting its leverage would be more than nine to 10 times its earnings in 2023, a high level....
...“Investors are switching out of those money market funds, which are traditionally more of a safe haven asset class, and chasing high yields via risky assets,” said Glyn....
...Which is why this new report from S&P Dow Jones Indices caught FT Alphaville’s eye....
...fund business turnarounds....
...For more than a century, the dividend yield of the US stock market was virtually always greater than what you could get from high-grade bonds....
...They would pump in $1.8bn in debt to refinance maturing loans and fund working capital and the growth of new clubs, Equinox said in a press release on Friday....
...However, the overwhelming bulk of the assets will be invested in an actively managed portfolio of bonds, much of it in relatively high-yielding bank loans, high-yield bonds and emerging markets debt, to...
...The percentage of bonds traded electronically has grown to 42% and 31% in 2023 in U.S. investment grade and high-yield, respectively, up from 34% and 25% in 2021....
...It goes from investment-grade and then it went into the high-yield debt universe. And at 50 cents in the dollar, made up like 10 per cent of the market. And so it becomes hugely binary....
...The high-yield, or “junk” spread, widened following the latest CPI release, but is still near its narrowest levels since January 2022, according to Ice BofA data....
...Both shares have rebounded about 15 per cent in the past eight weeks, outpacing the S&P 500 index. They still offer yields of about 7 per cent....
...More puzzlingly, the correlation of private debt to high yield is an inexplicable 0.3!...
...There are index funds that invest in high-yield stocks or smaller companies, for example; in neither case would such funds have big positions in tech giants like Apple or Nvidia....
...Despite the shifting expectations markets remain unruffled, with the S&P 500 hitting a fresh high earlier this month....
...The S&P 500, investment grade spread, high yield spread, loan spread, the level of rates, home prices, crypto, M&A activity, IPO activity; everything improved after the Fed signaled that rates are going...
...The bank’s shares have sunk to an all-time low while the yield on PBB’s single additional tier 1 bond, a debt instrument designed to take losses during a crisis, has surged above 40 per cent, up from 14...
...Israel has borrowed billions of dollars in recent weeks through privately negotiated deals to help fund its war against Hamas but is having to pay unusually high borrowing costs to get the deals over the...
...The volte-face was particularly notable in high-yield bonds, which saw year-to-date net outflows of $8bn as of October 27, but then took in $17.1bn in the remainder of 2023....
...High yield at a yield of 8 per cent looks even better… Credit spreads of 95 basis points in investment grade corporates and 325 bps on high yield are towards the tighter end of their long-term ranges, but...
...“I do think that the market is a little complacent,” said Kevin Loome, a high-yield portfolio manager at T Rowe Price....
...First the central bank suggested that high yields were doing some of its heavy lifting — an acknowledgment that higher borrowing costs were starting to bite....
...That’s around a quarter of an Nvidia or a single SPDR S&P 500 ETF. Things have changed....
...Spreads remain tight, but absolute yields in high-yield bonds are in the high-single to low-double-digit range, while defaults remain muted and company quality has improved....
...Longer term, assets such as high-yield bonds — which currently yield an average of about 9 per cent — have become an attractive alternative to stocks....
...Among the hedge funds to benefit from Thursday’s rally was Lee Robinson’s Altana Wealth, which launched a fund to buy Venezuelan debt three years ago....
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