High-grade bond market activity in the week ending September 26
Investment-grade debt has low credit risk. It’s usually an investor refuge when market and geopolitical risks run high. Investors shy away from riskier investments when market risks increase.
Last quarter, BlackBerry (BBRY) managed to allay fears that the company wouldn’t survive and would soon run out of cash with better-than-expected results. This quarter, BlackBerry came even closer to its target of breaking even.
Sector ETF Analysis
According to Baker Hughes, the U.S. total rig count was 1,931 during the week ending September 26. The rig count was a result of a decrease in vertical rigs. It was offset by an increase in horizontal drilling.
After the first quarter’s poor performance, Frontline Ltd. (or FRO) reported even lower revenues and net loss for the second quarter earnings. It released the second quarter earnings on August 28, 2014.
In September 2014, Microsoft (MSFT) announced its acquisition of Mojang, a Swedish company popular for its game Minecraft, for $2.5 billion.
According to the Bloomberg Consumer Comfort Index, perceptions of the economy are highly negative, 23% positive versus 77% negative.
A number of factors impact the iron ore industry, such as iron ore’s demand and supply situation and the growth and growth stage of world economies.
Caesars Entertainment has 51 casinos in 13 U.S. states and five countries. 38 are in the U.S. and primarily consist of land-based and riverboat casinos.
The Fed’s policy of keeping the nominal interest rates at a zero lower bound leads some investors to seek higher and stabler income elsewhere. The low-interest rate regime may force risk-taking investors towards the higher-cost debt of high yield bonds.
Macro ETF Analysis
Both equity and fixed-income investors keep a close watch on GDP, inflation, and unemployment to get a sense of where the U.S. economy is heading.
Record low U.S. Treasury rates continue to push investors to find yield elsewhere, and it seems that corporations are rushing to meet the demand. Matt Tucker explains.
While Russ doesn’t believe that last week’s sell-off reflects a fundamental shift in market conditions, he writes that it does provide two important lessons for investors.
Income ETF Analysis
Consumer spending and consumer debt are a driver of agency REITs such as Annaly Capital (NLY) and American Capital Agency (AGNC) as well as mall REITs such as Simon Property Group (SPG) and General Growth Properties (GGP)