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...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...
...There is far too much hand-wringing from banks and bond investors as bonds fall and yields rise back up towards 4.75 per cent, reversing the rally at the close of 2023 (“The great bet on rate cuts is off...
...“Since 2020, I can’t count how many times I saw people off at the airport,” Cheng says....
...Which might make sense if they didn’t carry lower coupon payments than El Salvador’s latest bond issue....
...John W MullinsAssociate Professor of Management Practice, London Business School,London NW1, UK...
...She’s in T-bills at 5.25 per cent right now. Pretty good deal. Or she could buy 10-year bonds at 4.55 per cent....
...Currently, two sovereign green-bond issuers, New Zealand and Israel, don’t even reach that standard....
...Even junk-rated companies, which aren’t considered the safest borrowers, aren’t considered to be distressed until their yields reach 10 percentage points above the risk-free benchmark....
...Sotheby’s will be banking on the fact that there isn’t much overlap between the buyers of esoteric ABS issues and European junk bonds, with investors in the former tending to be more focused on the underlying...
...the new transparency, governance and other behavioural constraints now imposed on governments by pension funds and other asset managers as a condition for absorbing ever expanding amounts of government bonds...
...Normally Alphaville doesn’t care too much about insurance company results, but Allianz’s ownership of Pimco — the biggest bond investment group in the world — makes it a good way to understand broader fixed...
...Chemours, which spun out from mega-industrial company DuPont in 2015, could come uncomfortably close to a default if it doesn’t meet a bond-contract deadline to file its annual report in coming weeks....
...“We prefer to be underweight in US Treasuries in favour of eurozone bonds including Bunds,” said Quentin Fitzsimmons, a senior portfolio manager at T Rowe Price, which manages $1.4tn of assets globally....
...Bob McNally, president of consultancy Rapidan Energy and a former energy adviser to US president George W Bush, said the fallout from the Iranian strike could still propel prices “towards, if not beyond,...
...“There’s a risk that we don’t thread this needle and unemployment picks up speed,” said Adam Abbas, head of fixed income at Harris Associates. “I think there are risks to credit spreads here.”...
...headwind. — Bond indices are dumb; by weighting according to size it means a passive fund is tilted towards the most heavily-indebted countries and companies in the world. — Index funds don’t buy at issuance...
...And whenever markets go haywire, dealers revert to voice: [W]e considered two different types of volatility events: an increase in the idiosyncratic (bond-level) volatility triggered by credit rating downgrades...
...So if a bond auction can’t fail, how do I know the US government isn’t taking on a disastrous amount of debt? Or, uh, borrowing for the wrong reasons, to put it differently? Ha, trust me, you’d know!...
...The supply issue is still out there, but the bond market doesn’t seem to care much about it.”...
...The shorter-term account contains say five years worth of income, invested in short-dated bonds that aren’t affected by interest rate changes....
...I just don’t know what the election is going to look like, I don’t know what the market’s going to look like — I want to avoid that volatility.’”...
...more details about the bond....
...As you can see at right, bank credit is still restricted, but spreads don’t care....
...These companies have such strong balance sheets and have so much free cash flow that they don’t need to issue [convertible bonds]....
...Like in 2007, if you bought corporate bonds, you didn’t have a good time over the next couple of years. But if you didn’t, if you bought them in 2016, it was a different story....
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