Disclosure: I am in full compliance with all ethics and other policies for Market Realist research analysts. I am not invested in securities that I cover on Market Realist.
Let’s look at the high yield bond markets. Junk bond issuers stayed away from the primary market for three successive weeks in December due to holidays.
Visa Inc (V) issued A1/A+ rated high-grade bonds worth $16.0 billion via six parts. This included $1.75 billion in 1.20% two-year notes at a spread of 30 bps.
According to Lipper, in the week ended August 10, 2016, leveraged loan funds saw inflows of $96.4 million. In the previous week, inflows were $60.4 million.
China’s State Council approved the long-awaited Shenzhen-Hong Kong Stock Exchange Link on August 16, 2016. The Shenzhen Composite Index gained 3.2% from August 12 to August 16.
The SSE Composite Index rose by 1.4% to 3,002.64 from August 3 to August 10. The Chinese government bond yield fell after the decline in global bond yields.
In the week ended August 3, 2016, leveraged loan funds saw inflows worth $60.4 million. In the previous week, leveraged loan funds had outflows of $15 million.
According to S&P Capital IQ/LCD, US leveraged loans saw an allocation of $18.4 billion worth of dollar-denominated senior loans in the week ended August 5, 2016.
Treasury yields rose on August 2 after the Japanese cabinet approved 13.5 trillion yen ($132.04 billion) in fiscal measures to boost the staggering economy.
Investment-grade corporate bonds worth $51.5 billion were issued in the primary market in the week to August 5, 2016. High-grade issuance was $32.7 billion the previous week.
Although China has emerged has an economic superpower, its suppression of freedom of expression may be difficult for the country to sustain in the long run.
The China Caixin Manufacturing PMI (Purchasing Managers’ Index) rose to 50.6 in July from 48.6 in June. This indicates renewed improvement in operating conditions.
China’s official Manufacturing PMI for July came in at 49.9, down from 50.0 in June. This was mainly due to massive floods in some parts of China and weak demand.
The SSE Composite Index was mostly flat for the week ended August 5, 2016. It ended at 2,976.7 as investors lost interest in a further stimulus from China.
US corporates dominated the primary market for high-grade bonds in the week ending July 29. They accounted for 42.7% or $14.0 billion of all the issues.
The overall demand fell for the seven-year T-notes auction because the FOMC meeting didn’t give any clarity regarding an interest rate hike in the future.
The Westpac MNI China CSI fell by 1.6% to 114. 0 in July from 115.9 in June as consumers were worried about their personal incomes due to weakness in the labor market.
The FOMC (Federal Open Market Committee) is widely expected to leave interest rates unchanged, as policymakers will assess the impact of the Brexit vote on June 24.
China’s urban fixed-asset investments grew by 9.0% year-over-year in the first six months of 2016, compared with a 9.6% growth from January to May 2016.
The inflows into the leveraged loan funds came in at $136.5 million during the week ending July 13—compared to an outflow of $17.5 million the previous week.
The three US stock indexes that we review in this weekly series rose from July 5–12, 2016. Robust US jobs data boosted investor sentiment and eased the fear of an economic slowdown.
Flows into investment-grade bond funds were positive last week. Investment-grade bond funds saw net inflows of $907.1 million during the week ending July 6.
The Westpac MNI China CSI rose 1.5% to 115.9 in June from 114.2 in May, which shows that increased policy support continues to trickle through to the real economy.
Understanding the PMI China’s manufacturing purchasing managers’ index (or PMI) is an economic indicator that gives you a snapshot of the manufacturing sector. A reading above 50 indicates that activity is expanding while below 50 signals a contraction. The manufacturing PMI is based on five sub-indices—the production index, new orders index, employed person index, main […]
Chinese Premier Li Keqiang said at the World Economic Forum (or WEF) on June 28, “The Brexit impact on Chinese economy is little. China’s economy will not suffer a hard landing.”
According to data from S&P Capital IQ/LCD, the US leveraged loan market saw an allocation of $15.9 billion of dollar-denominated senior loans last week.
Flows into investment-grade bond funds were positive for the 15th consecutive week. They saw net inflows of $1.8 billion during the week ending June 22.
Commonwealth Edison Company is a unit of Exelon Corporation (EXC). It issued A2/A- rated high-grade bonds worth $1.2 billion through two parts on June 20.
Among the options for investing in high-dividend yield stocks, dividend mutual funds pay out a dividend at regular intervals to their fund holders. They hold a basket of equities that pay dividends.
A hike in interest rates increases the cost of borrowing for companies. Most publicly traded companies carry at least some debt to fund their operations, and higher borrowing costs can cause their profit margins to contract.
The ALPS Sector Dividend Dogs ETF (SDOG), which applies the “Dogs of the Dow” dividend strategy on a sector-by-sector basis to stocks trading in the S&P 500, has risen by 14.0% on a YTD basis.
Beijing continues to open its capital account to offshore investors, and its toolkit of financial instruments to investors in China just keeps growing.
Jordi Visser at Weiss Multi-Strategy Advisers foresees China’s Shenzhen Composite Index (ASHR) as beating most global peers by the end of December 2016.
China’s MNI Business Sentiment Indicator rose sharply in June to 54.5 from 50.0 in May due to the availability of cheaper credit and better credit terms.
Investment-grade bond yields rose marginally for the week ending June 17. Corporate bond yields, as measured by the BofA Merrill Lynch US Corporate Master Effective Yield, rose 1 basis point on June 17 to end at 2.99%.
According to the People’s Bank of China, new loans issued by Chinese banks rose to 985.5 billion yuan ($150 billion) in May from 555.6 billion yuan ($85.2 billion) in the previous month.
In May 2016, China’s total retail sales of consumer goods rose 10.0% YoY (year-over-year) to 2.7 trillion yuan, slightly lower than the 10.1% growth recorded in April.
China’s ongoing decline in investment in the manufacturing and infrastructure sectors resulted in the slowest rate of growth in fixed asset investment since 2000 in May.
According to China’s NBS (National Bureau of Statistics), industrial production of enterprises above designated size grew by 6.0% YoY (year-over-year) in May 2016.
The SSE Composite Index fell by 1.4% to 2,885.1 from June 8 to June 17, 2016, after MSCI decided not to include China’s A-shares in its Emerging Market Index for the third straight year.
China’s manufacturing sector has been plagued by weak demand, rising labor costs, overcapacity in industries, and tighter resource and environmental constraints.
China’s official non-manufacturing purchasing managers’ index is an economic indicator that provides a snapshot into the non-manufacturing sector of an economy.
China’s manufacturing purchasing managers’ index (or PMI) is an economic indicator that provides a snapshot of the manufacturing sector of its economy.
According to data from S&P Capital IQ/LCD, the US leveraged loans market saw an allocation of $20.8 billion worth of dollar-denominated senior loans in the week ended May 27, 2016.
Investor flows into high-yield bond funds were negative last week. According to Lipper, net outflows from high-yield bond funds totaled $562 million in the week ended May 25, 2016.
High-yield bond issuance activity increased significantly last week on a firm market condition. Issuers were in a rush to close deals ahead of Memorial Day weekend.
Last week, the spreads were down by 2 basis points and ended at 1.5% on May 27, 2016. Meanwhile, the spreads are down by 19 basis points on a YTD basis.
