Greenlight Capital’s (GLRE) largest holdings at the end of the third quarter included Brighthouse Financial (BHF), General Motors (GM), Green Brick Partners (GRBK), AerCap Holdings (AER), and Ensco (ESV).
Einhorn has an optimistic view on General Motors. At the 2016 Sohn Investment Conference, he advised investors to take a long position in General Motors.
Dollar-denominated high yield debt amounting to $8.2 billion was issued in the week ended May 20, 2016. This was the fourth-largest issuance year-to-date.
Investor flows into high yield bond funds were positive for the third consecutive week. Net inflows into the high yield bond funds totaled $5.0 billion in the week ended March 2, higher than $4.25 billion inflows recorded in October 2011.
According to Lipper, net outflows from the high yield bond funds totaled $1.05 billion in the week ended February 10, 2016, compared to net outflows of $41.0 million in the week ended February 3.
Investor flows into high-yield bond funds were negative last week. Net outflows from high-yield bond funds totaled $41.0 million in the week ending February 3.
Investor flows in high yield bond funds were negative last week. According to Lipper, net outflows into the high yield bond funds totaled $809.0 million.
Net outflows from high-yield bond funds totaled $1.3 billion in the week ending December 23—lower than the net outflows of $3.8 billion in the prior week.
Junk bonds have been in the news due to concerns about defaults. They have an iffy repayment ability even if they’re at the higher end of the rating scale.
According to Lipper, net outflows from high-yield bond funds totaled $3.8 billion in the week ended December 16. These were the third largest outflows on record.
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.
According to Lipper, net inflows for high-yield bond funds totaled $7.6 billion through October 28, compared to outflows totaling $1.9 billion in September.
E-commerce and payment solutions provider First Data Corporation (FDC) issued junk bonds worth $3.4 billion on October 29. This was the largest issue of October.
Investor flows in high yield bond funds were positive this week, while yields on high yield debt and spreads between high yield debt and Treasuries fell.
According to data from S&P Capital IQ/LCD, the US leveraged loans market saw an allocation of $5.11 billion worth of senior loans in the week to October 16.
AerCap Ireland Capital Limited (Ireland)/AerCap Global Aviation Trust (Delaware) issued junk bonds worth $1 billion last week. They had a rating of Ba2/BB+.
The volatility in financial markets subdued market sentiment and made issuers very cautious about raising high-yield bonds in the week ending October 16.
Investor flows in high-yield bond funds remained in negative territory last week for the second successive week. Net outflows totaled $226.6 million compared to $1.6 billion the week before.
There was no high-yield bond issuance in the week ended September 4, 2015. This marked the second successive week in which high-yield bond issuers gave the primary market a miss.
Although the quantum of issuance rose in the week ended June 26, it was still lower than earlier in 2015, as yields have run up quite a bit. Most junk bond issuers were Caa/B rated.
TPG-Axon Management initiated a stake in Air Lease Corporation (AL) in 4Q14. The fund purchased 1,901,686 Air Lease shares, representing 4.9% of the fund’s 4Q14 portfolio.
Chimera Investment invests in residential mortgage loans, residential mortgage-backed securities, real estate-related securities and various other asset classes. Chimera declared a fourth-quarter 2014 cash dividend of $0.09 per common share.
CZR shares were down almost 18% this month on debt restructuring issues and a creditor group lawsuit. But third-quarter net revenues increased 6.0% year-over-year to $2,212 million in 3Q14.
Most airlines reported higher net margins during the third quarter compared to the previous year. Growth has been led by rising demand and falling crude prices
Boston Scientific Corporation is a worldwide developer, manufacturer, and marketer of medical devices that are used in a broad range of interventional medical specialties
Freeport-McMoRan posted revenue of $5.7 billion, down 7.6%. It said its results “reflect lower oil volumes and price realizations for copper, gold and oil.”
Ocwen Financial is the fourth-largest mortgage servicer in the US and operates in the servicing industry with an emphasis on foreclosure prevention, helping to keep borrowers in their homes. Its primary lines of business are servicing and lending.
Last month, Qualcomm announced 4Q14 and fiscal 2014 earnings that missed estimates. Its revenue for 4Q14 was $6.69 billion, missing analysts’ expectations by $330 million.
Melco Crown Entertainment is a venture between Australian billionaire James Packer and Lawrence Ho. Melco owns and develops casino gaming and entertainment resort facilities in Macau.
Nordic American Offshore (NAO) is an international offshore supply vessel company that was incorporated in Bermuda. NAO was spun off from Nordic American Tanker (NAT) in November last year.
AerCap said its 3Q14 net income grew to $340.9 million from $83.6 million in the same period of 2013. The increase in profit and earnings was “driven primarily by the ILFC transaction.”
Omega Advisors is a New York-based investment advisory firm founded in 1991 by Leon G. Cooperman. In this series, we’ll discuss the main positions traded by the firm in the third quarter of 2014.
Multi-specialty healthcare company Allergan is locked in a $53 billion hostile takeover battle with Valeant Pharmaceuticals and activist investor William Ackman of Pershing Square.
Greenlight Capital added to its position in Lam Research (LRCX). Currently, it accounts for 2.49% of the fund’s 2Q14 portfolio. The position was increased from 1.01% in 1Q14. Lam Research is a global supplier of innovative wafer fabrication equipment and services to the semiconductor industry.
Greenlight almost doubled its position in SunEdison Inc. (SUNE). Currently, it accounts for 6.71% of the fund’s 2Q14 portfolio. The position was increased in 1Q14 as well. SunEdison is a major developer and seller of photovoltaic energy solutions.
Greenlight disclosed a new position in Chemtura Corp. (CHMT). It accounted for 1.06% of the fund’s 2Q14 portfolio. Philadelphia-based Chemtura Corp. is a specialty chemical company with global operations.
Greenlight disclosed a new position in Time Inc. (TIME). It accounts for 1.13% of the fund’s 2Q14 portfolio. Time Inc. is a spinoff of Time Warner’s (TWX) publishing business. The spinoff was completed through a pro rata dividend on June 6, 2014, of Time’s shares held by Time Warner to Time Warner shareholders.
Greenlight disclosed a new position in AerCap Holdings NV (AER). It accounts for 1.42% of the fund’s 2Q14 portfolio. Netherlands-based AerCap is an integrated global aviation company. It has a leading market position in aircraft leasing.
Greenlight disclosed a new position in Civeo Corp. (CVEO). It accounted for 2.15% of the fund’s 2Q14 portfolio. Civeo was spun out of Oil States International (or OIS) in May, 2014. It provides remote site accommodations, logistics, and facility management services to the global natural resource industry.
According to a Newswire report, Greenlight Capital reported a 2.9% decline last month. However, it’s up 3.6% for the year. The fund’s second quarter investor letter noted that its technology positions have robust prospects.
JANA Partners’ 13F filing disclosed a brand new position in aluminum product manufacturer Constellium N.V. (CSTM) that accounts for 1.83% of JANA’s 1Q 2014 portfolio.
Most of the deals last week were in the tight ends of the talk, indicating higher demand for high yield bonds (JNK). The higher demand in turn pushes yields down.
Refinancing deals allow issuers or corporations to raise additional funds to meet maturing debt obligations or to replace existing high-cost debt with a new low-cost debt.
Atlas is not a straightforward recovery story, and it will likely require some patience this year, but the underlying sector and company themes suggest the worst may be behind management.
The company’s operating results during the fourth quarter were supported by the investments made to strengthen and diversify its business mix, including its 747-8 freighters in ACMI.
Business confidence, a leading indicator of trade activity and (by proxy) air cargo demand (FTKs), began to improve in Q4 after a fairly unimpressive 2013.
It is no secret that there has been a long-standing secular shift to other modes of freight transport (airfreight is 1% to 2% of global volume), but conversely, there has been a critical value shift.
Atlas Air Worldwide (AAWW) is an outsourced global provider of aircraft and aviation operating services for airlines, express delivery providers, freight forwarders, the United States military, and charter brokers.
While most of issuers were busy wrapping up the month, a few late comers gazed at the high yield bond market to seize the lower interest rate opportunity.
