High-Yield Bond Issuance Rose Last Week
The total US dollar-denominated issuance of high-yield debt stands at $56.9 billion YTD in 2016—29% lower compared to the same period in 2015.
Must-know: Omega Advisors increases its position in Ocwen Financial
Omega’s 13F filing revealed that it increased its stake in Ocwen Financial. The position currently accounts for 1.27%, up from 0.12% of the fund’s first quarter of 2014 (or 1Q14) portfolio. Ocwen Financial is a financial services holding company that, through its subsidiaries, is one of the largest mortgage companies in the U.S.
D. E. Shaw initiates a new position in Ally Financial
D. E. Shaw initiated a new position in Ally Financial that accounts for 0.13% of the company’s U.S. long portfolio. Ally Financial is an automotive financial services company with ~95 years of experience.
A Look at GM’s Stock Performance
In this part of our focus on the top 18 cheap S&P 500 stocks, we’ll discuss another six stocks: General Motors (GM), Ford Motor (F), Owens-Illinois (OI), The Goodyear Tire & Rubber Company (GT), Navient (NAVI), and Brighthouse Financial (BHF).
Post Holdings Issued the Most Junk Bonds in the Week to July 29
Post Holdings (POST) issued junk bonds worth $1.75 billion on July 25. The senior notes were rated B3/B and carried a coupon of 5.0%.
High-Yield Bonds and You in 2016
High-yield bonds, also known as Junk bonds, have an iffy repayment ability, even if they are at the higher end of the junk rating scale.
Small-Cap Financials Underperformed Large-Caps Last Week
Larger-cap stocks, above $10 billion, make up 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks have lost 8% in the past year.
Small Caps Underperformed Large-Cap Stocks in 2015
Large-cap stocks that are above $10 billion make up 87.3% of the Financial Select Sector SPDR Fund. These stocks fell 2.4% in 2015 and 2.6% in December 2015.
VWEHX Is a Safe Fund If Liquidity Temporarily Dries Up
VWEHX looks like one of the safest funds to be around in case liquidity dries up temporarily. The fund mainly avoided investing in the deep end of the junk category.
Small Caps Underperformed Large Caps Last Week
Large-cap stocks above $10 billion make up 87.3% of the Financial Select Sector SPDR Fund (XLF).
Widening High-Yield Bond Spreads: Opportunity or Threat?
Investors should note that high-yield bonds are risky securities to begin with. The add-on risk of widening spreads may not suit all types of investors.
Why AQR Capital exits its position in Tableau Software Inc.
AQR Capital sold a position in Tableau Software Inc. in 2Q14. The company accounted for a 0.0346% position in the fund’s first quarter U.S. long portfolio.
Why AQR Capital opens a new position in Equinix
AQR Capital initiated a new position in Equinix in 2Q14. The company accounts for a 0.221% position in the fund’s second quarter U.S. long portfolio.
Overview: AQR Capital Management’s 2Q14 positions
AQR Capital Management is an investment management firm. It was founded in 1998. It was founded by former Goldman Sachs portfolio manager Clifford S. Asness.
D. E. Shaw adds a new position in Navient
D. E. Shaw initiated a new position in Navient that accounts for 0.28% of the company’s U.S. long portfolio. Navient holds the largest portfolio of education loans insured or guaranteed under the Federal Family Education Loan Program (referred to as FFELP loans).