Hints and tips:
...The BBB Rated 1-5 Year Corporate Bond ETF, BBB Rated 5-10 Year Corporate Bond ETF and BBB Rated 10+ Year Corporate Bond ETF will target triple B rated corporate bonds within their respective maturity ranges...
...Japan Value ETF, a popular fund....
...When investors can earn measurable returns from bank deposits and top-rated bonds, speculative investments that promise growth lose their edge....
...Here is Bob Michele of JPMorgan Asset Management: The corporate bond market has also held up very well....
...For example, the iShare ETF holds three Evergrande bonds with maturities between 2024 and 2025 that are currently rated C by Moody’s, the lowest level with little prospect for recovery of principal or interest...
...Secondly, that DRGN holds bonds issued by exactly the same government and quasi-government entities as non-ESG funds, such as the iShares CNY Bond Ucits ETF (CNYB), but merely tilts the respective weightings...
...US Multi-Factor Corporate Bond funds as of last summer, according to fund documents....
...In early April, Barclays accepted a $4.2bn offer from CVC, a London-based private equity firm, for BGI’s rapidly growing exchange-traded fund (ETF) unit, iShares....
...Dislocations in ETF pricing may also have been fuelled by the huge growth in US corporate bond issuance which is rated as BBB, one level above high yield....
...The BlackRock iShares investment-grade bond ETF, known by the ticker LQD, rose 7.4 per cent on Monday, while the cost of protecting against the default of a basket of investment-grade companies fell 30 basis...
...Over half of HYG was rated B or lower by Moody’s at end-February 2020, according to the fund’s annual report. Moody’s found that of 699 junk-rated firms owned by PE, 643 or 92% were B2-rated or below....
...The move adds a new dimension to the central bank’s efforts to buttress the US economy, which already include buying more highly rated corporate bonds and ETFs....
...The two largest exchange traded funds specialising in junk corporate bonds — the iShares iBoxx (which trades under the ticker HYG) and the SPDR Bloomberg Barclays (JNK) — gathered $9bn in combined net inflows...
...The Primary Market Corporate Credit Facility (PMCCF) backstops investment grade rated companies selling new bonds, while loans issuance provides bridge financing of four years....
...On corporate bond ETFs. Here’s an explainer I wrote this week on this issue....
...BlackRock’s $74.3bn iShares US aggregate bond ETF, the largest exchange traded fund, which tracks the Agg index, attracted net inflows of $8.8bn last year....
...Bank of America notes for example that US corporate debt, rated triple B and between a maturity of seven to 10 years, provides a yield around 2.88 per cent for Japanese investors once the currency risk is...
...When you consider that companies most at risk of a downgrade constitute around 27 per cent of the index (rated as triple B-2 or triple B-3), Martin says investors may be “a little complacent considering...
...The iShares iBoxx high-yield corporate bond ETF is down 1.8 per cent so far this month, likely pressured by weakness among energy companies amid growing concerns about global growth and data showing US crude...
...The iShares iBoxx high-yield corporate bond ETF is up more than 7 per cent so far this year. Still, Ford chief executive Jim Hackett has been put on notice....
...Investors are pulling back from bonds backed by riskier corporate loans, raising pressure on highly indebted companies that have enjoyed easy access to the $1.3tn leveraged loan market in recent years....
...“The idea that giant insurance companies that are accustomed to buying individual bonds or derivatives are now beginning to use ETFs as core parts of their portfolios, that is totally new and we are starting...
...Corporate debt, especially corporate debt of lower-rated companies, often is issued in relatively small amounts and trades in small volumes....
...Inflows into the two biggest junk bond ETFs have sagged sharply this year, despite the poor performance of many traditional, active funds that focus on riskier, lower-rated corporate debt....
...The risk premiums that investors demand to hold speculative-rated corporate bonds have climbed, but this follows a familiar pattern that asset managers saw earlier this year....
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