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 in high yield bond funds were negative last week. According to Lipper, net outflows into the high yield bond funds totaled $809.0 million.
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.
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.
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+.
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.
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.
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.
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.
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.
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.
