More From Lynn Noah
Treasury Yields Fell as September US Industrial Production Dipped
Treasury yields fell across the yield curve for the week ended October 16, as US industrial production for September declined. Demand for safe-haven assets rose amid global uncertainty.
China’s Foreign Reserves Rise in June: Here’s Why
China’s foreign reserves rose by $13.5 billion in June to $3.2 trillion. June’s increase was the largest in 14 months.
High-Yield Bond Funds Saw Large Inflows, Yields and Spreads Fell
Investor flows into high-yield bond funds were positive for the week ended July 6, 2016, after three consecutive weeks of negative outflows.
What Do China’s CPI, PPI, and Debt Data Indicate?
China’s consumer price index (or CPI) rose to 1.6% year-over-year in September, mainly due to higher food prices and not improvement in economic activity.
Treasury Yields Rise as the Situations in Greece and China Improve
Treasury yields rose marginally across the yield curve in the week ended July 10, 2015. The demand for safe-heaven securities dropped.
US Stock Indices Plunge after Oil Prices Rebound
The three US equity indices that we review in this weekly series fell from December 8 to December 15, 2015, after a rebound in oil prices.
3-Year Treasury Notes’ Overall Demand Fell on July 7
The US Treasury holds monthly auctions of three-year Treasury notes. The latest auction was held on July 7.
Why US Treasuries Are All the Rage Right Now
Investors are flocking to safe-haven assets such as Treasuries (DRGBX) (TLT) and gold (IAU).
How Leveraged Loan Funds Continue to Witness Outflows
According to data from Lipper, leveraged loan funds saw an outflow for the seven days ended November 18, making them the 17th occurrence of such outflows.
10-Year Treasury Note Market Demand Barely Moved Last Week
On July 8, ten-year Treasury notes worth $21 billion were auctioned—the same as the previous week.
High-Grade Bond Yields Rose as Spreads Touched Their Lowest Level
Last week, high-grade bond yields rose after upbeat US inflation and retail sales data raised the possibility of a rate hike by the year’s end.
Treasury Yields Were Mixed amid Oil Price Volatility
Treasury yields rose across the yield curve—except for one-month T-bills, three-month T-bills, and three-year T-notes—in the week ending December 31.
Treasury Yields Jumped on Robust US Inflation and Retail Sales Data
US Treasury yields rose across the yield curve for the week ended July 15, 2016, as robust US consumer inflation and retail sales data revived expectations that the Fed could raise interest rates this year.
SSE Composite Index Has Fallen 12.3% in the Last Week
The SSE Composite Index fell by 12.3% from January 6 to January 13, 2016, and closed at $2,949.60 on January 13 on concerns about China’s economic growth.
December Saw the Highest Outflows of Leveraged Loan Funds in 2015
The total net outflows from leveraged loan funds in 2015 stood at $16.4 billion. This was marginally higher than the $16.2 billion recorded in 2014.
China’s Industrial Profits Accelerate in June
According to the National Bureau of Statistics, China’s industrial profits for firms above a designated size rose by 5.1% year-over-year to 616.3 billion yuan ($92.4 billion) in June.
Westpac MNI Consumer Sentiment Indicator for China Up in September
The Westpac MNI China Consumer Sentiment Indicator rose 1.5% to 118.2 in September—the highest level since May 2014—from 116.5 in August.
Leveraged Loan Funds Continue to Witness Outflows
Leveraged loan funds saw the fifth consecutive week of outflows last week. The quantum of outflows was small and came in at $75 million last week.
Leveraged Loans Primary Market Issuance Falls to Zero after Christmas Weekend
The issuance of US leveraged loans fell to zero last week. However, in the previous week, ~$4.9 billion in dollar-denominated senior loans were priced.
High-Yield Bond Funds Witness Outflows while Yields on Bonds Rise
Investor flows in high-yield bond funds were negative in the week ending December 11. Net outflows from these funds totaled approximately $3.5 billion.
Pinnacle Foods: Sole Junk Bond Issuer for the Week of January 15
Pinnacle Foods issued dollar-denominated junk bonds worth $350 million on January 12, 2016. The senior notes were rated B2/B+ and carried a coupon of 5.9%.
Investment-Grade Bond Funds Continue to Witness Inflows
Investment-grade bond funds saw net inflows of $1.0 billion during the week ending April 6—compared to net inflows of $112.3 million in the week ending March 30.
Indirect Bidders Lose Interest in 4-Week Treasury Bills
The percentage of indirect bids for 4-week T-bills fell to 20.0% from 29.9% week-over-week. Indirect bidders include foreign central banks.
Outflows in High-Yield Funds Fell, Yield on High-Yield Bonds Rose
Investor flows in high-yield bond funds were negative last week. According to Lipper, the net outflows from high-yield bond funds totaled $0.5 billion.
10-Year T-Notes: Highest Yield Since December 2014
The US Department of the Treasury conducts an auction for ten-year T-notes once a month. The yield on the ten-year T-notes is a benchmark in the financial markets.
Clear Channel International: The Only Junk Bond Issuer in the Week Ending December 11
An indirect and wholly owned subsidiary of Clear Channel Outdoor Holdings, Clear Channel International issued $225 million in dollar-denominated junk bonds.
Halliburton Company Led High-Grade Bond Issuance in November
Halliburton Company (HAL) issued A2/A rated high-grade bonds worth $7.5 billion in November.
Bid-to-Cover Ratio Rose for 2-Year Floating Rate Notes
The U.S. Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
IMF Provides a Positive Assessment of China’s Economy
In a press conference on June 14 on its annual Article Four Staff Report, the IMF provided a positive assessment of China’s economy.
China’s PPI Data Continue to Point to a Deflationary Environment
In December, China’s producer price index (or PPI) for manufactured goods fell 5.9% YoY, as manufacturers resorted to price-cutting due to weak demand.
AstraZeneca Issued High-Grade Bonds to Acquire ZS Pharma
Last week, AstraZeneca issued A2/A rated high-grade bonds worth $6.0 billion to fund the acquisition of ZS Pharma (ZSPH).
Impact of the Slowdown in China’s Retail and Financial Sectors
The financial sector is the largest sectoral component of all four mutual funds. So how the sector performs will have a major impact on the returns of these funds.
Analyzing China’s Leading Economic Index
China’s Leading Economic Index currently indicates that the country’s economy is facing a downturn. Its LEI remained unchanged at 98.71 points in July 2015.
What Do Hedge Fund Managers Have to Say about China?
Hedge fund managers have expressed mixed opinions about the Chinese economy. China’s total debt-to-GDP ratio is currently in the range of 240%–270%, compared to 150% a decade ago.
How to Gain Exposure to High-Dividend Yield Stocks
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.
China’s Official Manufacturing PMI Nudged Down in November
China’s official Manufacturing PMI reading for November was slightly down and came at 49.6 as compared to 49.8 in October. This index is released every month.
MDC Partners Issued the Most Junk Bonds in the Week to March 18
MDC Partners (MDCA) offers marketing and communication network services. It issued dollar-denominated junk bonds worth $900 million on March 18.
Investment-Grade Bond Funds Witness Largest Outflow of 2015
Flows into investment-grade bond funds were negative for the week ended August 26, making it the fifth successive week of outflows. It was the largest outflow of 2015 so far.
High Yield Bond Issuance Hit 2016 Record Last Week
High yield bond issuance surged last week and hit its highest level in 2016 yet due to continued growth in volume.
Why the Bid-to-Cover Ratio Rose for 2-Year Floating Rate Notes Auction
The US Treasury introduced two-year floating rate notes (or FRNs) in January 2014.
China’s New Loan and Aggregate Financing Plans: Are They Working?
New loans issued by Chinese banks rose to 1.4 trillion yuan ($211.2 billion) up from 726.6 billion yuan ($112.0 billion) in February 2016.
Investment-Grade Corporate Bonds’ Issuance Fell Last Week
Investment-grade corporate bonds worth $28.8 billion were issued in the primary market in the week to May 27, 2016.
The SSE Composite Index’s Performance since the Fed Rate Hike
The SSE Composite Index rose after the US Federal Reserve decided to raise the interest rate by 25 basis points. From December 9–16, 2015, the index rose 1.3% and closed at 3,516.2 points on December 16.
High-Yield Bond Issuance Fell after the FOMC’s Dovish Statement
Last week brought the total US dollar-denominated issuance of high-yield debt to $24.3 billion in 2016 YTD. It’s 71.0% lower than the same period in 2015.
Choosing between Short- and Long-Term Fixed-Income Mutual Funds
Bond prices fall when interest rate rise. So when interest rate rises, the value of a bond or a bond portfolio falls.
Market Participants Make a Beeline for 2-Year Floating Rate Notes
The US Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
Metlife Global Funding I Issued $1.25 Billion in High-Grade Bonds
A subsidiary of MetLife, Inc. (MET), Metlife Global Funding I is a special purpose statutory trust. It issued $1.25 billion in high-grade bonds rated Aa3/AA- in two parts.
High-Yield Bond Market Had a Strong Performance Last Week
High-yield bond issuance activity was strong last week. Dollar-denominated high-yield debt amounting to $10.1 billion was issued in the week ending April 22.
Investment-Grade Bond Funds Saw Outflows for Third Week in a Row
Investment-grade bond issuance fell to $26.275 billion last week as compared to $32.35 billion in the previous week.
Leveraged Loan Funds Saw Sharp Contraction in Outflows Last Week
According to data from Lipper, leveraged loan funds saw outflows for the fourth consecutive week. But the quantum of outflow was tepid.
Leveraged Loan Funds Saw Inflows after 4 Weeks of Outflows
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.
Why High Yield Bond Market Issuance Gained Traction Last Week
High yield bond issuance activity gained traction last week on improved Market sentiment. The total US dollar-denominated issuance of high yield debt is $60.8 billion in 2016 YTD.
What Do the PCE Price Index and Break-Even Inflation Indicate?
The PCE price index is the Federal Reserve’s preferred measure of inflation because it covers the broadest set of goods and services.
Leveraged Loan Funds Witness Back-to-Back Inflows
According to data from Lipper, leveraged loan funds saw an inflow for the second consecutive week. The quantum of inflows came in at $176 million last week.
Why Overall Demand Tanked for 2-Year Floating-Rate Notes
Overall, $13 billion worth of floating-rate notes were auctioned, the same as in February’s auction.
Why Leveraged Loan Funds Saw Outflows Last Week
According to S&P Capital IQ Leveraged Commentary & Data, three collateralized loan obligation deals worth $1.4 billion were priced last week.
China’s New Yuan Loans Rose in May, but Its Debt Pile Increased
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.
Why Did the SSE Composite Index Fall?
The SSE (Shanghai Stock Exchange) Composite Index fell by 0.4% from November 12 to November 19. It ended at 3,617.06 points on November 19, 2015.
Analyzing Risk-Adjusted Returns of Four China-Focused Mutual Funds
Risk-adjusted returns is a concept that can be used to determine how much return an investment can provide with the given level of risk associated with it.
China’s MNI Business Sentiment Expanded in April, Caution Prevails
China’s MNI Business Sentiment Indicator expanded to 50.5 in April due to stimulus measures from Chinese authorities to boost economic growth.
T-Notes Auction: Poor Demand amid the FOMC Meeting
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.
Mednax Issued Most Junk Bonds Back in December 2015
Mednax is a national medical group. It had issued junk bonds worth $750 million on December 1. Mednax would use the proceeds of the loan for refinancing.
Direct Bidders Flocked to 2-Year Floating Rate Notes Auction
The U.S. Department of the Treasury introduced two-year floating rate notes (or FRNs) in January 2014. An FRN is a debt security. Its interest payment varies, hence the name.
How Did US Treasury Auctions Fare Last Week?
The US Department of the Treasury’s 26-week Treasury bill, or T-bill, auction, totaled $26 billion last week.
Leveraged Loan Funds Witnessed a Small Outflow Last Week
According to data from Lipper, leveraged loan funds saw outflows for the third consecutive week. The quantum of outflows came in at $73 million last week.
High-Yield Bond Market Issuance Was Highest Year-to-Date
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.
How Did the Fidelity China Region Fund Class C Perform in August?
The Fidelity China Region Fund Class C (FHKCX) aims to achieve long-term capital growth.
Investment-Grade Bond Fund Flows Slowed Last Week
According to Lipper fund flow data, investment-grade bond funds saw net inflows of $2.2 billion during the week ended August 17, 2016.
Why China’s CPI Data Were Stronger in February
In February, China’s CPI (consumer price index) rose 2.5% YoY—the largest rise since July 2014. It was also higher than the 1.8% YoY rise in January.
Investment-Grade Bond Funds Saw Continued Outflows Last Week
Investment-grade bond funds have seen YTD net outflows of $1.87 billion up to January 13, 2016. High-grade bonds worth $62.47 billion—the highest in 2016 so far—were issued last week.
China’s New Yuan Loans, Aggregate Financing Dropped in February
China’s aggregate financing also fell sharply from 3417.3 billion yuan ($525 billion) in January to 780.2 billion yuan ($120 billion) in February.
Investment-Grade Bond Funds See Outflows for 4 Consecutive Weeks
Flows into investment-grade bond funds were negative for the week ended August 21, making it the fourth successive week of outflows. The funds saw net outflows of $1.09 billion.
China’s New Yuan Loans and Aggregate Financing Plummeted in April
China’s aggregate financing dropped to 751.0 billion yuan ($115.2 billion) in April from 2.3 trillion yuan ($361 billion) in March.
Why Qorvo and HCA Issued Most Junk Bonds
Qorvo is a company involved in radio frequency systems and defense. It issued junk bonds worth $1.0 billion last week that were rated as Ba1/BB+.
SSE Composite Index Falls despite China’s New IPO System
The SSE Composite Index fell by 1.8% from December 2 to December 9 and closed at 3,472.44 on December 9, 2015.
High-Yield Bond Issuance Recorded Is the Highest in 2016 YTD
High-yield bond issuance surged last week and recorded its highest level in 2016 due to improved primary market sentiment.
China’s Yuan Share Rose in Global Currency Payments
According to the latest SWIFT RMB Tracker, the yuan—also known as the “renminbi”—accounted for 2.3% of the global payments in November 2015.
Investment-Grade Bond Funds Witnessed Outflows in 1Q16
According to Lipper fund flows data, investment-grade bond funds saw net outflows of $517.5 million in 1Q16.
Key for Investors: 5 Issues Are Choking Real Growth in China
We think that 2016 will be challenging for the Chinese economy. With policy support and improved credit conditions, economic activity stabilized in 1Q16.
Concordia Healthcare: Last Week’s Highest Junk Bond Issuer
Concordia Healthcare, a healthcare company focused on legacy pharmaceutical products and orphan drugs, issued junk bonds worth $790 million last week.
China’s Official Manufacturing PMI Nudged Up in December
China’s official manufacturing PMI reading for December 2015 was up slightly and came in at 49.7. However, it was still in contraction mode compared to 49.6 in November.
High Discount Margin: Highest Ever for 2-Year Floating Rate Notes
The US Department of the Treasury introduced two-year FRNs (floating rate notes) in January 2014. An FRN is a debt security. Its interest payment varies.
Why Was High-Yield Bond Issuance Slow Last Week?
Last week brought the total US dollar-denominated issuance of high-yield debt to $66.5 billion in 2016 YTD—47.0% lower than the same period in 2015.
Investment-Grade Bond Funds See a Second Week of Outflows
Flows into investment-grade bond funds were negative for the week ended August 5—marking a second successive week of outflows.
Why Did US Stock Indices Rise?
Treasury yields fell across the yield curve last week after the US Department of Labor reported that the economy added fewer jobs in April.
How Did the Brussels Attack Affect 4-Week Treasury Bill Demand?
Market demand for the four-week Treasury bills rose from 38.1% in the previous week to 41.0% last week.
Is the US Economy Ready for Another Rate Hike?
With the US economy gearing itself up for the another rate hike, investors are investing in short-term Treasury securities whose price will fall less in value when interest rates rise.
TCWAX Fell Due to Weak Global Demand
For the month ending on November 30, 2015, TCWAX fell by 2.8% due to weakness in global demand and lower commodity prices.
Investment-Grade Bond Funds Saw Inflows Last Week
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.
Bid-to-Cover Ratio Jumped for 4-Week Treasury Bills
The US Treasury conducted its weekly auction of four-week Treasury bills (or T-bills) on December 8, 2015. The issuance was $45 billion.
Did Leveraged Loan Funds Break a 32-Week Streak of Outflows?
Leveraged loan funds saw inflows in the week ending March 9 after 32 consecutive weeks of outflows. However, the amount of inflows was small at $55.0 million last week.
Investment-Grade Corporate Bond Issuances Fell after Thanksgiving
Investment-grade corporate bond issuances worth $2.65 billion for the week ended November 27, 2015, and fell 92% from the previous week.
After the Fallout from Brexit, the Fed’s Hands Are Tied Again
With the Brexit fallout, the Federal Reserve will most likely delay the next interest rate hike until the end of this year or even next year.
Investment-Grade Bond Funds Record Highest Inflows of 2016
According to Lipper funds flow data, investment-grade bond funds saw net inflows of $3.1 billion—the highest inflows YTD (year-to-date)—during the week ending April 27.
Investment-Grade Bond Funds Witness Inflows
Flows into investment-grade bond funds were positive for the week ending on October 14 after witnessing four consecutive weeks of outflows.
How Did China’s Service Sector Fare in March?
China’s service sector expanded at a moderate pace in March. The Caixin China General Services Business Activity Index beat the neutral value of 50 to come in at 51.3 in March.
What Are the Portfolio Compositions of CHNIX and MCHFX?
Stocks from the financial sector form the biggest chunk of both funds. These stocks make up 33.9% of CHNIX, while forming 23.8% of the MCHFX.
SSE Composite Index Falls on Worries of a US Interest Rate Hike
The SSE Composite Index fell 1.0% to 2,807.51 from May 11 to May 18, 2016, after the minutes of the Federal Reserve’s April policy meeting hinted that a rate hike might happen in June.
Are There Opportunities amid China’s Manufacturing Slump?
China’s manufacturing sector has been plagued by weak demand, rising labor costs, overcapacity in industries, and tighter resource and environmental constraints.
How Did Junk Bond Yields Fare ahead of the FOMC Meeting?
Junk bond yields fell 18 basis points week-over-week and ended at 8.38% on March 11, 2016.