And in their wake sails the real Titanic — developed
markets debt investors.
Not exact matches
Republican Senator Rand Paul pointed to the
market sell - off last week as evidence of an «undercurrent of unease» among
investors worried about government
debt and inflation.
But stock
market investors who are enjoying the post-election rally — dubbed the «Trump Bump — owe a major
debt to the controversial bank that became a political lightning rod in the presidential campaigns.
Indeed, the longer a bull
market persists, the more
debt investors seem willing to take on.
Back then, Barrick was not a bloated organization that had lost
investor confidence, nor was it facing a mountainous $ 13 - billion
debt in a depressed gold
market.
In response to Einhorn's presentation, Assured Guaranty released a statement that said the
investor's analysis «fails to acknowledge the positive implications of our significant financial strength and strong operating performance, and demonstrates a fundamental lack of understanding of our business model and the municipal
debt markets.»
Although there may not be a bond bubble, with
investors starved for yield, Gundlach predicts a potential bubble could form in credit risk as
investors increase their leverage on riskier
debt securities like junk bonds and emerging
market debt.
Tapping into tax credit allocations through the New
Market Tax Credits scheme, which offers
investors tax credits for investing in CDFIs, generated more than $ 65 million in leveraged
debt from TCE and Capital Impact and $ 60 million of tax credit equity from JP Morgan and US Bank.
That year was a rocky one for
markets, with the European Union
debt crisis spooking
investors and fund managers alike.
More from Advisor Insight: Americans go on more drunk shopping sprees Scammed taxpayers agree to pay IRS «
debt» on iTunes cards
Market shocks should be wake - up call for
investors
OFFSHORE
investors are targeting the assets of distressed property investment funds, while listed developers have restructured their
debt and are ready to chase bargains in Perth's residential development land
market, new research shows.
Overall, this augurs for globally diverse fixed income exposures, including a preference for up - in - quality credit exposures and an allocation to emerging
market debt for
investors who can tolerate the added risk.
However, while we are in the sweet spot, we do see selected opportunities among EM assets that
investors may want to consider, including in EM local - currency
debt and certain equity
markets.
Investors have historically accessed infrastructure through private
debt and equity
markets (see graphic below).
The venture
debt investor must therefore properly ascertain
market conditions, the company's business model, the quality of
investors behind the startup, and the likelihood that more funding will take place.
The potential counter weights that could cap the 10 - year yield would be a negative stock
market reaction that drives
investors to bonds; lower interest rates outside the U.S. that make the U.S.
debt relatively more attractive, and good demand for longer - dated securities from insurers and others.
Emerging -
market companies have piled on
debt in recent years, allured by low interest rates from yield - starved
investors.
Gross writes that, «Soaring
debt / GDP ratios in previously sacrosanct AAA countries have made low - cost funding increasingly a function of central banks as opposed to private
market investors.»
Markets are now pricing that close to 20 billion more dollars will come out of Puerto Rico to
investors than they were at the end of 2017, following Puerto Rico's own government, which is inexplicably projecting a substantially greater ability to repay
debt today than before the hurricane.
Specifically, there is great concern that low volatility in the
markets is bound to reverse, that
investors are ignoring the real concerns about North Korea, a U.S.
debt ceiling that expires this fall, an unpredictable president and Washington gridlock.
Stubbornly low yet consistent economic growth in the U.S. gave confidence to companies that they could
market debt in seemingly limitless quantities, while short - term
investors enjoyed the stock
market gains.
With the S&P 500 within about 8 % of its highest level in history, with historically reliable valuation measures at obscene levels, implying near - zero 10 - 12 year S&P 500 nominal total returns; with an extended period of extreme overvalued, overbought, overbullish conditions replaced by deterioration in
market internals that signal a clear shift toward risk - aversion among
investors; with credit spreads on low - grade
debt blowing out to multi-year highs; and with leading economic measures deteriorating rapidly, we continue to classify
market conditions within the most hostile return / risk profile we identify — a classification that has been observed in only about 9 % of history.
Asset Management Equity Financing and Placement
Debt Financing and Placement Mergers and Acquisitions Corporate Partnering and Strategic Alliances Restructuring and Workouts Startups and Management Alternative Finance Strategies Advice on Capital
Markets Corporate Shareholder Communications Access to Retail, Institutional, and Accredited
Investors Database Strategic Introductions to Global Network ConnectInvest - one - on - one Meetings with Global
Investors Advice and Introductions on Capital Raises Media and Press Release Distribution Event Creation and Management Representation in Trade Shows and Conferences for Media Exposure
The $ 1.2 trillion high - yield
debt market could face a double whammy as spreads tighten and
investors use the corporate earnings season starting in the second week of October as an excuse to take even more profits.
In the current
market,
investors that have great credit, plenty of cash, and little
debt might be able to find absolute steals in real estate, picking up properties for far less than they were selling for only a few years ago.
If you'll recall, the root cause of the collapse a decade ago was the
market realization that all this
debt that was being sold to
investors as high yield and low risk was suddenly reevaluated.
In the July 2010 version of their paper entitled «The Impact of
Investor Sentiment on the German Stock
Market», Philipp Finter, Alexandra Niessen - Ruenzi and Stefan Ruenzi test the predictive power of a composite sentiment measure combining consumer confidence, net equity mutual funds flow, put - call ratio, aggregate trading volume, initial public offering (IPO) returns, number of IPOs and aggregate equity - to -
debt ratio of new issues.
Investor demand for emerging
market (EM)
debt has been strong lately, as the near - term risk of trade wars has faded and income seekers have flocked to the asset class» higher yields.
But because the equities
market is at such high levels with a record margin
debt, this combination along with the shift in
investor sentiment could lead to a significant and dramatic sell - off.
In Europe, the
market's development has been hampered by a hodgepodge of national bankruptcy laws, and
investor sentiment that has not fully recovered from the sovereign
debt crises early this decade, according to Oh.
With interest rates on low - risk investments falling to low levels in many countries,
investors have sought to maintain yields by moving into higher - risk assets such as corporate
debt and emerging
market debt.
During this two - year crisis
investors have continually called on the ECB and euro area leaders to «fix» the
debt issue: by wiping out half of Greece's
debt, by protecting Italy's access to
debt markets through bond purchases, or by suggesting a levered EFSF, the euro area's rescue vehicle.
China's corporate
debt has been quickly rising relative to economic output, prompting
investors to identify and watch for signs of trouble in the bond
market.
He and his team have been top ranked multiple times in LatAm sovereign
debt and local
market surveys (including Institutional
Investor and Euromoney).
While developed
markets flounder in a post-crisis quagmire of sovereign
debt, developing
markets are enjoying much better times — and private equity
investors have taken note.
Because the equities
market has been pushed up by this additional flow of funds, any sign that
investor sentiment is shifting will lead to a pullback in margin
debt, and this leads to selling pressure in the equities
market.
European sovereign
debt markets were in turmoil as
investors priced into the
markets their fear that the Euro currency experiment could end in failure.
When
investors are inclined to speculate, they tend to be indiscriminate about it, and for that reason, we've found that the most reliable measure of
investor psychology is the uniformity or divergence of
market action across a wide range of individual stocks, industries, sectors, and security types, including
debt securities of varying creditworthiness.
The fixed - income
market has begun to embrace well - established principles and practices of sustainable investing, and
debt investors are starting to engage with companies on ESG issues.
Because risk - seeking
investors tend to be indiscriminate about it, we find that the best measure of risk - seeking is the uniformity of
market internals across a broad range of individual stocks, industries, sectors, and security types, including
debt securities of varying creditworthiness.
«Many
investors are looking for exposure to emerging
markets, but do not have the risk appetite for emerging
market equities or emerging
market local - currency
debt,» said Fijalkowski.
Central bank intervention in global bond
markets has «crowded out» many traditional fixed income
investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging
markets debt, leveraged loans and private credit.
These low rates have encouraged
investors in recent months to pile on risk, taking U.S. equities
markets to record highs earlier this year despite an economy that's still being slowed by relatively high unemployment, huge
debt levels, and tighter government spending.
-- Junk - bond
investors are passing up traditional protections in their race to buy new
debt, and some participants worry the diminished safeguards are a sign of an overheated
market.
To make things worse, Canada's economy has been hit hard by falling oil prices, and
investors remain wary of a Canadian housing
market that has shown signs of becoming a bubble, as well as rising consumer
debt rates.
Yield curve inversions, while rare, generally forecast deep
market downward adjustments, as
investors in strong
markets typically demand higher yields for holding
debt notes longer.
«Of late, the view in financial
markets has been unsettling: Banks and
investors are holding riskier
debt.
Spreads on European emerging
market debt have also narrowed as
investor concerns about political developments in Russia have subsided and the country's credit rating has been upgraded.
The day after Lehman's bankruptcy filing, the Reserve Primary Fund — the oldest money
market fund and an
investor in Lehman
debt — announced its shares would fall below $ 1 each, what the industry calls «breaking the buck» and
investors know as losing principal.
The reduction reflects improvements in economic prospects in emerging
markets, and increased
investor interest in higher - yielding
debt, given the relatively low yields available in industrial countries.