Relative strength for utilities and REITs in the stock world, as well as relative strength
for investment grade debt in the bond universe, suggest that the Fed will barely bump overnight lending rates, if at all.
Not exact matches
With other big acquisition funding still in the pipeline, it was crucial
for banks to set a positive tone
for investment -
grade debt and lure buyers back into a struggling market.
And to Sonders, financing conditions
for buybacks through
investment -
grade debt will likely last long enough
for markets to find other sources of demand.
We remain overweight U.S credit
for its income potential, but prefer
investment grade debt given elevated credit market valuations.
Western allies press Trump to maintain nuclear deal with Iran: Reuters US intelligence monitors Iranian cargo shipments into Syria: CNN A trade war is a major risk
for China's
debt - ridden economy: CNBC Federal judge orders gov» t must accept new DACA immigration applications: WaPo Unification of Koreas still unlikely as leaders prepare to meet: Reuters US Consumer Confidence Index rebounded in April after March decline: CB New home sales in US increased to 4 - month high in March: MarketWatch Richmond Fed Mfg Index turns negative
for first time since 2016: Bond Buyer S&P Case - Shiller Home Price Index surged in Feb, up 6.3 % y - o - y: CNBC Federal Housing Finance Agency: US house prices continued to rise in Feb: HW Corp bonds with lowest
investment -
grade rating look vulnerable: Bloomberg 10 - year Treasury yield reaches 3.0 %
for first time since 2014: CNN Money
The continent has struggled to develop high - yield
debt markets
for growth companies below
investment grade, and what it did achieve is collapsing in 2016.
A bond rated BBB or higher (A-3 or higher,
for short - term
debt) is considered
investment grade.
Sales volume
for new
investment -
grade corporate
debt is at its lowest level since 2014.
The eventual downgrade to junk, aka non-
investment grade, will make IL
debt ineligible
for investment for some of their major institutional investors (one of which has already called
for a boycott of Illinois
debt) which are restricted by mandate to purchase only
investment grade muni bonds.
Floating rate bank loans are loans issued by below
investment grade companies
for short term funding purposes with higher yield than short - term
debt and involve risk.
We see
investment -
grade corporate
debt as attractive in a world hungry
for yield.
Given the introduction of several new ECB policies yesterday (expanded QE; purchases of nonfinancial,
investment grade corporate
debt; new refinancing programs; incentives to reduce the impact of negative interest rates on banks and spur lending) we think the outlook
for European credit and equities is quite constructive.
Jakarta's 38.9 % increase was driven by a substantial recovery in domestic demand in the wake of Indonesian sovereign
debt's return to
investment -
grade status, which energized leveraged
investment initiatives and drove up demand
for prime office space across the capital.
The European Central Bank on Thursday delivered basically what the market expected
for QE: 60 billion euros of purchases per month directed at
investment -
grade - rated government and agency
debt and with a total size, considering the contemplated end date by September 2016, of around one trillion euros.
(B) SENIOR
DEBT. - Notwithstanding subparagraph (A), in a case in which the Federal credit instrument is the senior
debt, the Federal credit instrument shall be required to receive an
investment grade rating from at least 2 rating agencies, unless the credit instrument is
for an amount less than $ 75,000,000, in which case 1 rating agency opinion shall be sufficient.»
-» (A) IN GENERAL. - To be eligible
for assistance under this chapter, a project shall satisfy applicable creditworthiness standards, which, at a minimum, shall include -» (i) a rate covenant, if applicable;» (ii) adequate coverage requirements to ensure repayment;» (iii) an
investment grade rating from at least 2 rating agencies on
debt senior to the Federal credit instrument; and» (iv) a rating from at least 2 rating agencies on the Federal credit instrument, subject to the condition that, with respect to clause (iii), if the total amount of the senior
debt and the Federal credit instrument is less than $ 75,000,000, 1 rating agency opinion
for each of the senior
debt and Federal credit instrument shall be sufficient.»
[199] The assessment of the senior obligations»
investment grade potential and the default risk
for the TIFIA credit instrument and the senior obligations should be based on the underlying ratings of the unenhanced
debt obligations and the project's fundamentals.
In such a structure, the
investment grade ratings
for senior
debt helps the DOT evaluate its credit risk as a subordinate lender.
Each project, at the time of its application
for assistance, is required to furnish a preliminary rating opinion letter from one of the bond rating agencies identified by the Securities and Exchange Commission as a «Nationally Recognized Statistical Rating Organization,» indicating that the project's senior
debt obligations have the potential to achieve an
investment -
grade bond rating.
Notwithstanding subparagraph (A), in a case in which the Federal credit instrument is the senior
debt, the Federal credit instrument shall be required to receive an
investment grade rating from at least 2 rating agencies, unless the credit instrument is
for a rural infrastructure project or intelligent transportation systems project, in which case 1 rating agency opinion shall be sufficient.
We remain overweight U.S credit
for its income potential, but prefer
investment grade debt given elevated credit market valuations.
Investment grade corporate bonds and emerging market
debt have benefited from this trend
for most of 2016.
A bond rated BBB or higher (SP - 3 or higher,
for short - term
debt) is considered
investment grade.
A bond rated Baa or higher (Prime - 3 or higher,
for short - term
debt) is considered
investment grade.
After the bull market kicked off six years ago, as investors searched
for yield amid low interest rates, they increasingly turned toward fixed income credit sectors, such as high yield,
investment grade and emerging market
debt.
Fund investors padded the coffers of corporate
investment -
grade debt funds (+ $ 822 million) and international & global
debt funds (+ $ 985 million) but were net redeemers of high - yield funds -LRB-- $ 491 million) and government mortgage funds -LRB-- $ 226 million)
for the week.
Since 90 % of the index is made up of
investment -
grade debt from blue - chip companies, it can be viewed as a proxy
for the U.S.
investment -
grade bond market.
I put 40 % of my congregation's building fund into high yield and low
investment grade debt in late 2008 — made up
for a lot of 2008 losses.
Consider the preference investors have shown
for investment grade government
debt over comparable high - yielding corporate bonds.
But
for the most part,
for most high yield
debt, almost all
investment grade debt, and vanilla structured securities, the market is functioning.
Unfortunately, losses tend to come in heaps
for investment grade corporate
debt.
A bond rated BBB or higher (A-3 / SP - 3 or higher,
for short - term
debt) is considered
investment grade.
The eventual downgrade to junk, aka non-
investment grade, will make IL
debt ineligible
for investment for some of their major institutional investors (one of which has already called
for a boycott of Illinois
debt) which are restricted by mandate to purchase only
investment grade muni bonds.
We could define the split between «
investment -
grade» and «high - yield»
debt based on the cost of insuring against default
for the next five years.
If investors grow anxious about holding low - quality bonds, they may trade them
for the higher - quality
debt, such as government bonds and
investment -
grade corporate bonds.
The same predictive relationship is apparent
for the broad
investment grade bond market (U.S. Aggregate Bond Index), shown in Figure 3, as well as
for 10 - year sovereign
debt of other developed countries.
At ING, he was the head of
investment grade corporate credit, responsible
for investment grade corporate credit as well as collaterized loan obligation and synthetic collateralized
debt obligation
investment portfolios.
If investors grow anxious about holding low - quality bonds, they may trade them
for the highest - quality
debt, such as U.S. Treasuries and
investment -
grade corporate bonds.
To qualify
for inclusion in the index, securities must have a below
investment grade rating (based on an average of Moody's, S&P, and Fitch) and an
investment grade rated country of risk (based on an average of Moody's, S&P, and Fitch foreign currency long term sovereign
debt ratings).
The table below describes the rating assignments
for both
investment -
grade and below -
investment -
grade debt.
The
investment grade rating is reserved
for those
debts that have a high likelihood of being repaid and are relatively safe
for investors, though safety can not be absolutely guaranteed [see also A Brief History of Bond Investing].
Doos is widely recognised
for his experience in multijurisdictional acquisition finance,
investment grade and sub-
investment grade corporate finance, distressed portfolio sales, and strategic
debt investments.
Founded in 1897, David Cronheim Mortgage Corporation and its affiliate companies located in Chatham, NJ provide an array of real estate services including
debt and equity
for investment grade real estate.
Backed by a century's worth of knowledge and expertise, Cronheim Mortgage provides a vast array of real estate services, including
debt and equity
for investment grade real estate.