HJ Heinz Company
As of mid-December 2015, Berkshire Hathaway’s equity has declined by 15% over the past one year, compared to the 2% decline of the S&P 500.
Berkshire Hathaway’s long track record and a highly risk-averse approach towards investments have enabled it to command a premium over peers and the market.
Berkshire Hathaway reported its 3Q15 earnings on November 6. With operating income per share of $2,769, the company beat Wall Street analysts’ estimate.
The U.S. leveraged loan market registered a straight 94th week of increase in net investors’ cash flows according to Lipper, a division of Thomson Reuters.
As expectations for higher interest rates continued, investors centered their focus on floating-rate loans to capitalize on interest rate volatility.
Tech & Comm Services
On the expectation of the tapering to finish by the end of the year, about 13 FOMC participants indicated at the first Fed funds rate hike in 2015.
Energy & Utilities
Credit spreads are the difference in yield between U.S. Treasuries and corporate bonds of the same maturity. Corporate bonds yield more than Treasury bonds, as they carry a risk of default.
The Treasury’s newest issuance of floating rate notes, or FRNs, on January 29, commanded immense investor interest. The $15 billion issue received bids for 5.67 times the issue amount.