Visa Inc (V) issued A1/A+ rated high-grade bonds worth $16.0 billion via six parts. This included $1.75 billion in 1.20% two-year notes at a spread of 30 bps.
On October 23, Rockwell Collins (COL) announced that it intends to acquire B/E Aerospace (BEAV) for a total consideration of $8.3 billion. Within Rockwell Collins, B/E Aerospace will operate as its new Aircraft Interior Systems segment.
Flows into investment-grade bond funds were positive last week. Investment-grade bond funds saw net inflows of $907.1 million during the week ending July 6.
Investment-grade bond funds have seen YTD net outflows of $1.87 billion up to January 13, 2016. High-grade bonds worth $62.47 billion—the highest in 2016 so far—were issued last week.
Anheuser-Busch InBev (BUD) issued $46.0 billion in high-grade bonds rated A2/A- rated on January 13. This was the second largest high-grade bond issuance on record.
Investment-grade corporate bonds worth $62.47 billion were issued in the primary market in the week ended January 15, 2016. Investment-grade corporate bonds worth $29.68 billion were issued in the previous week.
Flows into investment-grade bond funds were negative for the week ended December 16. The investment-grade bond funds saw record net outflows of $5.1 billion during the week.
The Fidelity Canada Fund invests at least 80% of assets in the securities of Canadian issuers and other investments that are tied economically to Canada.
Running a credit card division locks up some of a retailer’s capital and resources. Nordstrom’s credit card portfolio sale will let it focus on its core retail business.
When the rate does rise, it will mean an increasing interest rate environment, where corporate issuers may be required to pay more interest to creditors.
Rising home prices lead to households taking on more debt to fund the purchase. Increased bank lending to fund the purchases drives real estate prices up more.
A housing bubble is a rapid increase in the valuation of house property. It increases to a level that can’t be sustained. The housing market in Canada is overvalued.
Residing in Canada is expensive. With home prices on cloud nine, could the Canadian economy be giving signals of bubble similar to the US housing bubble?
One of the challenges facing the Canadian economy is a lack diversification. More than 70% of the TSX Composite Index is made up of only three sectors.
Canada’s inverted sovereign yield curve could be an indication of an upcoming recession. US yields exhibited similar curves prior to the 2008 recession.
The “Big Six Banks” in Canada have only reduced their prime rates by 15 basis points. So the spread between the prime and key interest rates is now 0.1%.
