Sentences with phrase «rating corporate debt»

When it comes to rating corporate debt there are a lot of customers.

«Many investors are interested in high credit quality bonds, but the supply of AAA - rated corporate debt in the U.S. is very limited,» said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares» investment advisor.

Recent reports from rating agencies state that as much as USD 4 trillion [3] in U.S. - rated corporate debt is set to mature through 2020.

This data represents the ICE BofAML US High Yield Master II Index value, which tracks the performance of US dollar denominated below investment grade rated corporate debt publically issued in the US domestic market.

Not exact matches

Fill the bulk of your portfolio with a combination of high - rated bonds (weighted toward corporate, rather than government, debt) and high - quality, dividend - paying equities, and you likely won't take a hit.

Treasury Secretary Steven Mnuchin talks to Squawk Box's Becky Quick, Joe Kernen and Andrew Ross Sorkin about reducing the corporate tax rate, raising the debt ceiling and improving the economy.

But low interest rates, at least in Canada, have pushed household debt to such vertiginous levels that officials like Carney know they shouldn't be counting on consumer spending to drive the recovery — ergo, the call for more corporate investment.

Moreover, corporate America has been dependent on low rates to finance the trillions of debt issuance it has taken on during the era of zero interest rate policy, or ZIRP.

«Broadly, China is making progress in controlling its debt in various parts of the economy,» said Christopher Lee, managing director in the corporate ratings group and chief ratings officer for Greater China at S&P Global Rratings group and chief ratings officer for Greater China at S&P Global Rratings officer for Greater China at S&P Global RatingsRatings.

The result in the early 1980s when debt - leveraged buyouts really gained momentum was that financial investors were able to obtain twice as high a return (at a 50 % corporate income tax rate) by debt financing as they could get by equity financing.

«Since June 2010, Gross has been reducing the $ 245 billion fund's vulnerability to interest - rate swings and increasing its reliance on credit quality by shifting from Treasuries to corporate and non-U.S. sovereign debt, a strategy that backfired last month,» according to Bloomberg.

Some examples: in the presence of full expensing, a corporate rate reduction has no effect on the cost of capital for equity - financed investments and raises the cost of capital for debt - financed investments.

Unhedged foreign currency debt, as was prominent in 1997, means that a fall in the currency pushes up debt servicing costs for the government, local corporates and banks, but a rise in interest rates to assist the exchange rate has the same adverse effect.

In the presence of debt finance, textbook analysis would suggest that a cut in the corporate tax rate would raise the cost of capital because interest deductions would no longer be as valuable and thus discourage investment.

We suspect that much of the projected growth benefit from corporate tax reform comes from enacting expensing of equipment, which reduces the entity - level effective tax rate to zero on equity - financed investment and makes it negative if financed in part with debt.

Hope for positive effects from interest rate cuts, versus continued deterioration of corporate earnings and employment, as well as sudden concern over the debt problems in Argentina (which we noted in early May).

The Barclays U.S. Aggregate Bond Index is a market value — weighted index of investment - grade fixed - rate debt issues, including government, corporate, asset - backed, and mortgage - backed securities, with maturities of one year or more.

The Bloomberg Barclays U.S. Corporate High Yield Bond Index covers the universe of fixed - rate, non-investment-grade debt.

Represents the corporate and government - related sectors of Bloomberg Barclays Global Aggregate Bond Index (which provides a broad - based measure of the global investment - grade, fixed - rate debt markets) and is considered representative of global investment - grade debt.

Our Global Market Strategies segment, established in 1999 with our first high yield fund, advises a group of 46 active funds that pursue investment opportunities across various types of credit, equities and alternative instruments, including bank loans, high yield debt, structured credit products, distressed debt, corporate mezzanine, energy mezzanine opportunities and long / short high - grade and high - yield credit instruments, emerging markets equities, and (with regards to certain macroeconomic strategies) currencies, commodities and interest rate products and their derivatives.

The only variables he admits are structure - free: The federal government can indeed spend more and reduce interest rates (especially on mortgages) so that the higher mortgage debt, student debt, personal debt and corporate debt overhead can be afforded more easily.

Interest rates remain low, corporate balance sheets generally remain strong and debt - service costs appear manageable.

What if, they wonder, rising rates make all that corporate debt look less attractive and spur a selloff?

All told, though, the plan is, like its House counterpart, a proposal to dramatically slash corporate tax rates, open up a big new loophole for wealthy individuals, and pay for the cuts by dramatically expanding the national debt and ending a number of tax deductions that could leave a substantial share of middle - and upper - middle - class people paying more.

Unfortunately, corporate debt relative to U.S. GDP has now returned to prerecession levels, a risk made even riskier by rising interest rates.

Emerging markets corporate debt is a maturing asset class of which around 60 % is rated investment grade.

The job growth is fake, there's been no wage growth since 1999, inflation numbers are false, government debt is too high, corporate profits are too low, corporate profits are unsustainably high, companies aren't reinvesting their profits, companies are buying back too much stock, the Federal Reserve is propping up the market, the Federal Reserve is keeping rates artificially low, and so on.

We note that in this cycle, riskier companies have led the pick - up, hence defaults in the weaker segment of corporate debt could rise as real rates climb above neutral.

You'd think that corporate debt would grow in proportion to total sales, as this additional debt is used to fund investments in productive activities that create more sales and contribute to the economy, and that higher sales, and presumably higher earnings would create a proportionate increase in the value of the company, and thus in its stock price, and that they all go up together, not in lockstep but over time more or less at the same rate.

Legg Mason plans to close a deal this month to restructure $ 650 million in debt, a move designed to lock in favorable interest rates for the long term while taking advantage of the market's sustained appetite for corporate bonds.

Similarly, in the country, the ultra-rich pay - off the politicians and then extract the wealth via different mechanisms such as money printing, bond - price (interest rate) fixing, corporate tax holidays, and excessive executive compensation while the nation's balance sheet is laden with debt.

With corporate leverage, too little makes you a takeover target, and too much means bankruptcy when rates rise and you can't roll the debt.

Thus, even as longer treasury yields quit rising, the market rate on corporate debt starts soaring, often quite dramatically.

Although the largesse is restricted to blue - chip eurozone companies such as food producer Danone or telecoms giant Telefónica, ECB - injected liquidity has spilled into the rest of the market, paring average interest rates on investment - grade corporate debt by some 30 basis points to an even 1 %, Deloitte estimates.

Posted by Nick Falvo under corporate income tax, debt, deficits, economic growth, fiscal policy, income tax, interest rates, monetary policy, progressive economic strategies, public services, taxation.

Delaying the corporate - tax - rate reduction was one of many tough choices Senate leaders made as they tried to craft a bill that would lower taxes but also add no more than $ 1.5 trillion to the debt over 10 years.

Since 2010, U.S. corporate debt has been growing at an annualized rate of more than 5.5 %.

They bought enormous amounts of mortgages and other debt instruments, and they drove down interest rates to virtually zero to ensure that the large investment banks and financial institutions survived — forcing retail investors to participate in high - risk securities such as equities and corporate debt instead of stashing their money in banks.

In every economy, very low interest rates and unending credit supply have loaded up the marginal borrower — corporate and individual — with unsustainable debt.

Some concerns surround US dollar - denominated corporate debt, which has risen steeply over the past two years in emerging markets to benefit from low US interest rates.

Corporate gearing ratios remain conservative by historical standards and debt servicing costs remain low, reflecting the relatively low level of interest rates.

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.

Debt - burdened American corporates (and, to a lesser extent, European companies) are sailing into headwinds from the US Federal Reserve, which finally started hiking interest rates last December.

For roughly three decades, U.S. non-financial corporate debt as a percentage of U.S. nominal GDP and the high yield default rate moved in tandem.

Strong profitability, low interest rates and a debt burden well below historical peaks have all tended to hold down the interest burden of the corporate sector: as a share of gross operating surplus, net interest paid by the corporate sector remains well below historical averages.

Thus, I believe the Fed's articulation of a lower terminal policy rate in the longer run is much more important for the mortgage markets and for corporate capital expenditures financed through the debt markets than is a modest increase in short rates.

The Bloomberg Barclays Emerging Markets USD Aggregate Index is a flagship hard currency emerging market (EM) debt benchmark that includes fixed and floating - rate U.S. dollar — denominated debt issued from sovereign, quasi-sovereign, and corporate EM issuers.

The BAA spread refers to the yield on corporate bonds above the rate on comparable maturity Treasury debt, and is a market - based estimate of the amount of fear in the bond market.

So far, September 2016 has been touted as the taper date for QE, but Soc Gen think the ECB may have to venture into buying lower - rated government debt and even corporate debt if growth and prices continue to disappoint.

The Bloomberg Barclays Long - Term Government / Corporate Bond Index is an unmanaged index that includes fixed - rate debt issues rated investment grade or higher by Moody's Investors Services, Standard & Poor's Corporation, or Fitch Investor's Service, in order.