Sentences with phrase «yield debt market»

Global ratings agency Moody's has blamed risky projects and volatile market conditions for the failure of two Australian mining companies soon after they entered the high yield debt market.

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.

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.

Not exact matches

Many people have bought into this space because it's one of the only places to get decent yield, but she points out that a number of companies only offer corporate debt because of market demand.

In the short - term, however, this increased leverage may actually be bullish for junk bonds, corporate bonds, emerging market debt and mortgage - backed securities as it brings higher prices and lower yields, he said.

The sell off in the market for high yield debt, or junk bonds, is now hitting a type of structured bond that is similar to the the type that blew up in the financial crisis.

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.

That might lower the amount of debt entering the high yield market.

Energy companies have made up a good portion of debt issued in the high yield market over the past few years.

It puts 25 % into foreign stocks, 25 % into U.S. Treasuries, and 10 % each into commodities, emerging - market currency, bank loans, high - yield bonds, and 5 % each into TIPS and local - currency emerging - market debt.

«Shorter duration hedge fund assets have grown at a rapid pace even as market liquidity has deteriorated, particularly in the high yield and distressed debt markets.

Yields in the $ 14 trillion market for U.S. government debt touched record lows in 2016, driven by years of aggressive central bank intervention in the wake of the 2008 - 2009 financial crisis to keep interest rates low to stimulate the economy.

yields will hit the highs on close end of the day... equity markets setting up to be slammed tomorrow maybe but today they have run over weak shorts in the face of rates... the federal reserve see's this and again will wonder if they are behind on hikes, strong data, major expansion in credit, lack of wage growth rising bond yields and ballooning debt... rates will go much higher and equities will have revelations as to what that means for valuations

They could then reinvest that cash into higher yielding assets such as, say, emerging market debt.

Authors Linda Goldberg and Deborah Leonard examine how the news contained in economic announcements — the unanticipated information that can move markets — influences sovereign debt yields.

Yields on U.S. government bonds are already some of the highest in the sovereign debt markets and are attractive to non-U.S. buyers on an absolute and relative basis.

These include emerging market bonds, high yield debt, corporate bonds and mortgage bonds.

The $ 1.2 trillion market for U.S. junk bonds yields about 6.6 percent, double what's offered by higher - rated company debt, according to Bank of America Merrill Lynch index data.

Our team of credit professionals deliver sales and trading capabilities across a wide range of fixed income asset classes including high yield, distressed and investment grade bonds, convertible bonds, public and private corporate securities, leveraged loans and emerging market debt.

But even as the market adjusts to the next level of yields, there will be more government debt for the Treasury market to deal with.

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.

Against this environment, our strategists remain bullish on equities and continue to favor emerging market currencies and, in the fixed income space, prefer local markets over external debt and maintain their higher - yielding yet better - quality bias.

Although the bond market is also volatile, lower - quality debt securities, including leveraged loans, generally offer higher yields compared with investment - grade securities, but also involve greater risk of default or price changes.

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.

Prior to joining Cerberus, Mr. McLeod managed the leveraged finance origination and execution activities at CIBC World Markets from 1998 to 2006, where he originated, structured and executed transactions involving high yield debt securities, leveraged loans, privately placed mezzanine securities and merchant banking investments.

I still think there will be a flight to safety in sovereign bonds when stocks have a bear market but other areas such as high yield and corporate debt could run into some problems.

As yields on preferred shares rose over the past year and a half, many corporate issuers turned to debt markets as a cheaper source of financing for their funding needs.

As you can see in the chart below, one of the portfolio's strengths is the freedom it has to go beyond traditional sources of income and pursue nontraditional income sources — such as ETF exposure to bank loans, preferred stock, and emerging market debt — in order to seek yield.

Oil prices have fallen more than 15 percent since March 4 to a six - year low of $ 42.3, wiping out $ 7 billion of market value of high - yield debt issued by energy companies.

Global monetary policy remains broadly accommodative — and in some areas more and more so — propelling equity markets ever higher and leaving a record amount of sovereign debt around the world (almost US$ 12 trillion by midyear) yielding at or below zero (source: Fitch Ratings, as of 6/29/2016).

A forward P / E ratio of 16.5 times earnings isn't anything to write home about, even if the stock trades on a forward free cash flow - to - enterprise value (market cap plus net debt) yield of 5.2 %.

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

Certainly, the extreme present bearishness on the treasury debt market is helping to support prices where they are but once that is worked off we think the downtrend in prices (meaning up - trend in yield) continues.

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.

While I didn't have an explicit forecast on European sovereign debt, I admit that I completely missed the possibility that by the end of 2015, 40 percent of the European sovereign debt market would be trading at a negative yield.

The continuing low level of government bond yields has supported the search for yield that has been evident over the past couple of years, with the spread between yields on US government debt and yields on both corporate and emerging market debt remaining around historical lows over the past three months (Box B).

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.

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.

For years, friendly debt markets have allowed issuers to push the «maturity wall» — where tons of bonds come due simultaneously across the high - yield market.

Tags: 10 - year yield, ETFs, EU, Fed, President Macron, trade, U.S. yield curves Posted in Debt Market, Fed 16 Comments»

The market «prices in» the tax - deductible feature on municipal coupon payments, so when you aren't a beneficiary of said tax treatment, then I (at least) believe it makes more sense to get tax - free income on higher yield corporate debt (of the same credit profile).

Yet by setting yields so low and bond prices so high, markets are sending a clear signal that they want more, not less, government debt.

Tags: average hourly earnings, Bunge Grain, cyclical, Fed, FOMC, Lael Brainard, nonfarm payrolls, tariffs, U.S. Dollar, U.S. yield curves Posted in Currency, Debt Market, Fed, United States 14 Comments»

We have seen an expansion of global high - yield debt issuance, particularly in European and emerging markets during this cycle (as shown in Exhibit 1).

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.

With corporate debt markets priced for another Great Depression, High Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high yield income stream for years to Yield Bonds are in a unique position to outperform equities given recent runups off the lows while providing a high yield income stream for years to yield income stream for years to come.

It's also interesting to examine the changing significance and dynamics of the European bond market in general, which has almost doubled in size since 2005 to more than $ 10 trillion today, including government, investment - grade corporate debt and high yield.

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.

Tags: BOC, Fed, financial repression, Janet Yellen, Loonie, pension funds, RBA, yield curve Posted in BCB, Currency, Debt Market, Fed, RBA 10 Comments»