BTC iShares iBoxx USD Investment Grade Corporate Bond ETF
Why Elliott Management Might Be in Trouble
Last week, Elliott Management filed its 13F for the first quarter of 2020. In the last quarter, the hedge fund’s AUM was worth around $73.15 billion.
Fisher Asset: What Are Kenneth Fisher’s Investing Ideas?
At the end of Q3, Fisher Asset’s total portfolio was worth around $91 billion. We’ll focus on Fisher Asset’s top holdings, buys, and sells.
Highest ETF Outflows in Three Months
FactSet data showed that ETFs posted net outflows of $21.6 billion during the week, which pushed the year-to-date inflows down to $129.4 billion.
How Big a Problem Could US Debt Become?
If we turn back the clock to before the recession, we find that US debt levels weren’t this high, and unconventional programs like quantitative easing helped the economy recover from the Great Recession.
Tax Reform Bill: An Open Letter from 137 Economists
A few days before the US Senate approved its own version of the Tax Cuts and Jobs Act, 137 economists signed an open letter supporting the proposed bill.
The FOMC’s Latest Review of the Financial Situation
The FOMC staff review indicated that domestic financial asset prices between meetings reacted to lower accommodation from the US Federal Reserve.
Green Bonds Issuance Show Signs of Growth in 2017
Green bonds carry the same risk-return profile as conventional bonds. However, these bonds fund projects focused on energy efficiency, clean water, transportation, biodiversity, and sustainable waste management.
US Tax Reform: Everything Investors Need to Know
The proposed US tax reform bill, or the Tax Cuts and Jobs Act, received approval from the US Senate on December 2. There was a vote of 51-49 in the Senate.
Are Investors Not Worried about Risk Anymore?
Throughout this series, we’ll look at potential risks facing markets, and how they could impact global financial markets in the short-to-medium term if they end up materializing.
The Bond Market’s Reaction to New Rate Hike Hopes
After three weeks of continuous falls, US bond yields rose in the week of September 10. The benchmark ten-year US Treasury yield (BSV) rose by 10 basis points to 2.20% but remains far from the December 2016 high of 2.64%.
The Fed Sees These as Vulnerabilities in the Market
Yellen’s financial outlook remained upbeat, but she pointed to the availability of substantial amounts of capital and liquidity in the banking system as potential vulnerabilities.
What Does the Green Bond Index Look Like?
Apprehensions over climate change, an emphasis on global pension funds over the integration of ESG in their investments, and new markets will fuel demand for this type of bond.
Why You Should Consider Investing in ANGL and FLTR
The VanEck Vectors Fallen Angel ETF (ANGL) and the VanEck Vectors Investment-Grade Floating Rate ETF (FLTR) provide various benefits.
Which ETF Is Designed to Outperform When Rates Rise?
The VanEck Vectors Investment-Grade Floating Rate ETF (FLTR) has an effective duration of 0.14 years. It protects you from rising interest rates.
How to Protect Your Portfolio from Rising Interest Rates
FLTR isn’t impacted much by interest rate hikes. FLTR has an effective duration as low as 0.14 years because its coupons match interest rates.
How Markets Could Respond to the Fed’s Hawkish Stance
Equity markets trended lower after the Fed’s March meeting minutes were reported. In the minutes, some FOMC members sound concerned about the rise in equities.
Could Lower Tax Rates Affect Municipal Bonds Negatively?
For investors in the top tax bracket, municipal bond (XMPT) yields on a tax-equivalent basis are roughly 5.0%.
Allocating Your Portfolio When Inflation Rises
Gold and oil are good hedges against inflation. While gold usually outperforms, if inflation rates rise along with interest rates, it might gain as much.
Short-Term Corporate Bonds Help Mitigate the Risk
A short-term corporate bond offers investors with a lower risk profile to invest in fixed income securities with intermediate or short-term maturities.
Ray Dalio: ‘We Have Made the 30-Year Top in Bond Prices’
So, if we’ve reached the top in bond (TLT) prices, one can only expect a reversal from here.
Should We Get Ready for a Rate Hike in December?
The possibility of a 25-basis-point rate hike in December is quite high since Donald Trump was elected president, and the markets are already pricing in a hike.
Bernstein Shows the Opportunity Cost of Not Investing in Equities
According to Richard Bernstein, “Few investors seem to appreciate the magnitude of the opportunity cost of avoiding equities.”
US Bond Yields Rose in October: What You Need to Know
Treasury yields witnessed a secular rise in October. Except for yield on the one-month Treasury bill, which remained flat month-over-month, all other tenors saw a visible rise in yields.
Where Are We in the Debt Cycle?
Ray Dalio doesn’t see abrupt crisis Back in 2007, Ray Dalio’s economic principles template “signaled that we were in a bubble and a debt crisis lay ahead.” However, Dalio doesn’t “see such an abrupt crisis in the immediate future.” He has provided two reasons he holds this belief. “Most economies are near the mid-points of the […]
How Might Alcoa Corporation’s Balance Sheet Look after the Split?
One of the biggest investor concerns about Alcoa’s (AA) split is related to the splitting of liabilities; namely, debt and pension liabilities.
Will Japan Benefit from Monetary Easing with Yield Curve Control?
In September, gold (GDXJ) prices rose sharply against all major currencies except the yen.
Jeffrey Gundlach: Where’s the Bond Market Heading?
Gundlach observes that the two-year Treasury yield has bottomed out, while the five-year Treasury is also almost double its mid-2012 lows.
Why the Spike in Demand for Investment-Grade Corporate Bonds?
The demand for US investment-grade corporate bonds was driven by higher yields generated by bonds in the midst of low interest rates.
Divided Opinions about the Fed’s Rate Hike Procrastination
The December 2015 rate hike was the first since the 2008 global meltdown. Now the Fed is hinting at the first rate hike of the year to come in December 2016.
The Intense Search for Yield Ends in the United States
You historically can’t get a high level of yield from relatively safe fixed income investments.
Increased Government Spending Can Have a Domino Effect
Many economists agree that the United States needs to shift from a reliance on monetary policy to more fiscal stimulus, but it is not clear that the political stars are aligning to do so…
Ray Dalio: Bonds Haven’t Had a Bear Market in Decades!
“The potential for relatively big losses in bonds worries us because bonds effectively haven’t had a bear market in decades,” said Ray Dalio.
A Look at Popular Post-Brexit Investments
The uncertain global environment created after the Brexit vote made investors hope for a perpetual low rate environment. The prospect of further easing from central banks in the developed markets has spurred strong demand for government debt.
Category ETFs: Where Is the Yield?
Analyzing last week’s most significant ETF inflows in the context of our entire ETF universe, we note that investors continued to move capital into emerging markets.
Why Yankee Bank Issuers Find US Corporate Debt Attractive
A lower cost of borrowing and tighter spreads have attracted foreign banks to flock to the US corporate debt market.
Why Investors Are Flocking to the US Corporate Debt Market
According to the Bloomberg US Treasury Bond Index, US government debt has returned 5.4% in 2016. Global investors are flocking to the US debt market (LQD) (AGG), primarily due to negative yields in Europe and Japan.
Risk-Reward Ratio Is in Favor of Emerging Market Debt
Emerging market debt (EMB) has attracted investor’s attention as a higher-yielding alternative in a world where yields are quickly falling below zero.
Why Does Fixed Income Look Promising?
Under the current uncertain economic circumstances, investors searching for higher yield might turn to fixed income.
High-Grade Bond Yields Fell, Spreads Rose at the End of July
According to the BofA Merrill Lynch US Corporate Master Effective Yield, high-grade bond yields have risen since the beginning of 2016.
Is Brexit Underscoring the US Corporate Bond Market’s Strength?
When uncertainty rises, equity markets become volatile, and bond spreads rise. Brexit is likely to have a similar effect on capital markets.
Market Reaction to the Fed’s July Policy Statement
Equity markets barely reacted to the Fed’s July policy statement released on July 27, 2016. The S&P 500 index was weighed down by consumer staples and Coca-Cola.
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.
High-Grade Bond Yields Fell Due to Volatility in Global Markets
Last week, high-grade bond yields fell due to growing panic and concern about global economic growth as the UK decided to leave the European Union.
Why Did Investment-Grade Bond Yields Fall Last Week?
Movement in investment-grade bond yields was driven by aftershocks following the Brexit vote. Last week, investment-grade bond yields fell.
Category ETFs: Off to New Safe Havens
US equity markets have recovered from the declines on Monday, June 27, 2016. But money is flowing into safe havens as investors are remaining cautious.
Why Alcoa Might Be Able to Get the Desired Credit Rating
Alcoa aimed for an investment grade credit rating for its value-add company while maintaining a strong non-investment grade rating for the upstream company.
Why Investment-Grade Bond Yields Rose Slightly Last Week
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%.
Bill Gross Analyzed ‘Carry’ in Credit Risk, Volatility, and Liquidity
In his June 2016 investment outlook, Bill Gross stated that “credit risk or credit ‘carry’ offers little reward relative to potential losses.”
High-Grade Bond Yields and Spreads Fell in the Last Week of May
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.
Investment-Grade Bond Yields Fell after Yellen’s Hawkish Comments
Investment-grade bond yields fell slightly for the week ending May 27 after Fed Chair Janet Yellen stated that a rate hike would be appropriate in the coming months.
High-Grade Bond Yields Rise on Better Odds of a Rate Hike
Last week, investment-grade bond yields jumped 12 basis points and ended at 3.16%, the highest level since April 5, 2016.
Investment-Grade Bond Yields Jump on Hawkish FOMC Minutes
Investment-grade bond yields jumped in the week ending May 20 as the FOMC (Federal Open Market Committee) minutes indicated that the Federal Reserve may go ahead with a rate hike in June.
High-Grade Bond Yields Continue to Go Downhill
According to the BofA Merrill Lynch US Corporate Master Effective Yield, high-grade bond yields averaged 3.6% in January 2016.
Why Did Investment-Grade Bond Yields Fall?
Investment-grade bond yields fell for the week ending May 13 despite upbeat retail sales and consumer confidence data.
High-Grade Bond Yields, Spreads Fell Last Week
In April, the downward trend in bond yields continued due to weak corporate results and no strong guidance by the Fed on a rate-hike.
Where Did International Data Point in the Week Ended May 6?
Weak US jobs data indicated that hiring was slow in April 2016 due to weak economic growth, low productivity, and soft corporate earnings.
Why Investors Should Consider Mortgage-Backed Securities
In a webcast in April, Jeffrey Gundlach suggested that mortgage-backed securities are what investors should be looking at right now.
High-Grade Bond Yields and Spreads Fall to Lowest Levels in 2016
In March, yields fell sharply and averaged 3.44% after the Fed gave a dovish outlook for the next interest rate hike.
What Do Widening Bond Spreads Indicate?
Widening spreads indicate a slowing economy. Since companies are more likely to default in a slowing economy, credit risk related to their bonds rises.
High-Grade Bond Yields Rose, Spreads Were Lowest Year-to-Date
According to the BofA Merrill Lynch US Corporate Master Effective Yield, in January 2016, yields averaged 3.6%.
Investment-Grade Bond Yields Rose amid Oil Rebound, Economic Data
Investment-grade bond yields rose in the week ended April 22, 2016, following a rebound in oil prices and favorable economic data.
High-Grade Bond Yields and Spreads Touched Lows Last Week
Last week, investment-grade bond yields fell due to soft economic data. They touched 3.1% on April 15, 2016, the lowest level since June 1, 2015.
Investment-Grade Bond Yields Fell on Soft Economic Data
Investment-grade bond yields fell in the week ended April 15, 2016, after the release of soft economic data.
Why High-Grade Bond Yields and Spreads Fell in 1Q16
According to the Bank of America Merrill Lynch US Corporate Master Effective Yield, in January 2016, high-grade bond yields averaged 3.6%.
Investment-Grade Bond Yields Fell on the Fed’s Dovish Outlook
Investment-grade bond yields fell in the first quarter ended March 31, 2016. Fed chair Janet Yellen released a dovish statement on the interest rate hike.
High-Grade Bond Yields and Spreads Kept Sliding at End of March
High-grade bond yields fell sharply by 13 basis points and ended at 3.2% on April 1, 2016.
Why Investment-Grade Bond Yields Fell despite Solid Economic Data
Investment-grade bond yields fell in the week ended April 1 after a dovish outlook from the Federal Reserve despite a solid US jobs report and expansion in the manufacturing sector.
Market Volatility Isn’t a Reflection of Bond Market Illiquidity
Liquidity hasn’t really deteriorated in some of the major segments of the bond market. Other direct liquidity measures suggest sufficient liquidity in the system.
High-Grade Corporate Bonds React to the Fed’s March Policy
Yields on high-grade corporate bonds, as represented by the BofA Merrill Lynch US Corporate Master Effective Yield, have fallen since the Fed released its March policy statement.
Why Quality of Life Is the New Money for Millennials
I believe that consumption demand patterns among millennials, including an emphasis on quality of life, is somewhat influencing this demand for travel and leisure, tech products and personal services.
Your Fixed Income Investment: Passive or Active, Safety or Income
Whether you believe in passive or active investing, one thing is for certain: During uncertain times, the appeal of fixed income products rises.
How to Ballast Your Portfolio with Bonds
Municipal bonds (or munis) were the best performers in 2015 with returns of 3.2%. Meanwhile, investment-grade corporate bonds (LQD), long-dated Treasuries (TLT), and high-yield bonds (HYG) all gave negative returns in 2015.
Letting Alternative Investments Hedge Your Returns against Deflation
An alternative investment is an investment in asset classes other than stocks, bonds, and cash that seeks to provide a hedge against various market risks.
Gross Recommends Avoiding High-Risk Markets and Staying Vanilla
In the current market environment, Bill Gross recommends staying plain vanilla. His advice is to avoid high-risk markets.
Long-Term Outflows Continue, ETFs Attract Funds for US Equities
In the week ending December 4, 2015, US equities saw total outflows of $3.4 billion, compared to $4.6 billion in the previous week.
Why Preferred Stocks Are Less Volatile than Common Equities
Preferred stocks are less volatile compared to common equities. This is mainly because a larger portion of the returns comes from dividends, which tend to be stable.
Why Rising Credit Spreads Point to a Slowing Economy
The difference between the yields on corporate bonds and Treasury bonds of the same maturities is often known as the “credit spread.”
Credit Risk and Interest Rate Risk Have a Negative Correlation
Credit markets tend to improve when the economy is improving. The possibility of a default on corporate bonds (LQD) drops, thus causing their yields to fall.
Why the Fed May Have Missed Its Window of Opportunity
The problem for the Fed is that the 5.1% unemployment rate has reached what many economists feel is full employment.
Own Bonds across Credit Quality to Diversify Your Portfolio
Adding bonds across credit classes helps diversify your bond portfolio. The weight of each category depends on your risk appetite and the business cycle.
Why To Expect Muted Returns from US Equities
We can expect muted returns from US equities going forward. US stocks face the prospect of higher interest rates, albeit gradual and from unusually low levels.
Spreads between High-Grade Bonds and Treasury Yields
If spreads widen further, high-grade bonds will become more attractive because yields and prices are inversely related. A rise in yields indicates falling prices.
Yield Spreads between Treasury Securities
Yield spreads are the difference between the yields of two fixed income securities. In this article, we’ll look at yield spreads between Treasury securities.
Why Bonds Deserve to Stay in Your Portfolio
The correlation between equities and high yield bonds is quite high, at +0.7. This is because both equities and high yield bonds depend on the well-being of the economy.
Why You Should Favor Credit over Duration When it Comes to Bonds
Favor credit over duration as interest rates rise. Look for tactical opportunities within fixed income.
CVS Health Issues Most High-Grade Bonds in Week Ended July 17
PepsiCo (PEP) issued high-grade bonds worth $3.25 billion. The A1/A rated bonds were issued via the following five parts.
Investment-Grade Corporate Bond Issuance Hits Near 3-Month High
Investment-grade corporate bonds worth $55.4 billion were issued in the primary market in the week ended July 17, 2015. The number of issuers rose to 20 from 17 in the previous week.
Investment-Grade Corporate Bond Yields Hit Another 2015 High
Yields on investment-grade corporate bonds fell to a low of 2.84% in mid-April. US corporates and financials thronged the primary US bond market due to these low yield levels.
Why Investment-Grade Bond Yields Rose in Week Ended July 17
US economic indicators drove movement in investment-grade bond yields last week. A rise in gasoline prices led to an increase in US consumer prices in June.
Charter Dwarfs All High-Grade Bond Issuances Last Week
US corporates dominated high-grade bond issuance in the week ended July 10, making up 54.4% of all issues. The week brought the year-to-date issuance of corporate high-grade bonds to $910.0 billion.
Investment-Grade Corporate Bond Issuance Resumes after Lull
Investment-grade corporate bonds worth $39.225 billion were issued in the primary market in the week ended July 10. This was several times higher than issuance worth $500 million in the previous week.
Investment-Grade Corporate Bond Yields Touch 2015 Highs
For a large part of 2015 so far, yields on investment-grade corporate bonds have stayed below 3.10%. These bonds were in demand globally due to their higher yield.
Hope of Greek Deal Leads to Rise in Investment-Grade Bond Yields
Greece’s fate in the Eurozone drove investment-grade bonds last week. A safe-haven demand for most of the week pushed yields down. But investment-grade bonds saw yields rise week-over-week.
Non-Farm Payroll Leads Drop in Investment-Grade Bond Yields
A stronger-than-expected private jobs report by ADP led to a rise in investment-grade bond yields. Non-farm payroll additions for June were lower than forecast, which helped cap the rise by moving yields down.
Investment-Grade Corporate Bond Yields Fall but Spreads Widen
Investment-grade corporate bonds are debt instruments that are rated BBB- and above by rating major Standard & Poor’s. Most of 2015 to date has seen yields fall.
Issuance of Investment-Grade Corporate Bonds Fell Last Week
Baxalta, Energy Transfer Partners, JPMorgan Chase, Occidental Petroleum, and Cardinal Health were among the biggest issuers of investment-grade corporate bonds last week.
Greece Worries Lead Investors to Investment-Grade Bonds
The Federal Open Market Committee’s June statement didn’t elicit a strong reaction in either direction from investment-grade bonds, especially not from Treasuries.
Foreign Interests Bought More US securities in April 2015
South Korea was the largest net buyer in April, purchasing US securities worth $4.6 billion. Meanwhile, Belgium was the largest net seller, letting go of securities worth $23.9 billion.
Reynolds American Leads High-Grade Bond Issuance in June 12 Week
US corporates dominated high-grade bond issuance in the June 12 week—accounting for 56.5% of all the issues. US financials accounted for 8.4% of all the issues.
Investment-Grade Corporate Bond Yields: Elevated Levels in June
Yields on investment-grade bonds had been down for the first five months of 2015, compared to the levels in 2014. Global investors were attracted to these US bonds.