Market regulator Sebi has restructured its three advisory committees relating to the secondary market, mutual funds and corporate bonds and securitisation. Revamping its secondary market committee, Sebi listed Zerodha co-founder and CEO Nithin Kamath among the new inductees to the 17-member panel, according to the latest information on the regulator’s website. The advisory board will […]
Even though interest rates are at rock bottom today, bond investors have reason to rejoice. With the recent emergence of many fixed income platforms such as Bondskart, BondsIndia and Axis Direct YIELD, investing in a wide variety of corporate bonds has become easier for retail investors. However, a minimum investment requirement of ₹2 lakh on […]
Generally speaking, 2021 has been an unforgettable year in the bond market and more frustration could occur in 2022 as the Federal Reserve intensifies its tapering activities and embarks on interest rate hikes. Corporate bonds could be a way for investors to stay committed to fixed income in the new year without worrying about Fed […]
With Joel Kim, Head of International Fixed Income and CEO Asia ex-Japan, Dimensional Fund Advisors Briefly describe Dimensional Fund Advisors, including its fixed income trading team, operations and capabilities? Dimensional is a global systematic investment manager, founded by David Booth in 1981, and with $653 billion in assets under management as of September 30, 2021, […]
Sebi has released a consultation paper on corporate bond (CB) market making. Issuance has increased significantly in recent times, but the bulk of CBs continue to be privately placed and held to maturity, hampering transparency and market efficiency. A thriving secondary market for COs would strengthen liquidity, lead to better price discovery, and therefore lower […]
By JAMES ANYANZWA Kenya has introduced new measures to penalize and ban business leaders who misuse corporate bond proceeds following a series of defaults that undermined investor confidence. The new Capital Markets Authority (CMA) policy requires company directors to file quarterly reports with the authority on the use of borrowed funds to ensure that bond […]
Foreign investors looking for higher Treasury yields could support demand for US corporate bonds, according to an expert from JPMorgan. Foreign holdings of US corporate bonds surged midweek “after the 10-year Treasury yield rose about 18 basis points,” Bloomberg reported with remarks from Eric Beinstein, who heads the high quality US credit research and strategy […]
The new framework, which will come into effect from April 1, 2022, will also increase liquidity on the exchange, the Securities and Exchange Board of India said. To improve the transparency of debt investments by portfolio management services in corporate bonds, Sebi said on Thursday that PMS will have to conduct at least 10% of […]
TEILOR Holding SA, a group of companies that includes the luxury jewelry chain TEILOR, Teilor Invest Exchange and the financial credit company Invest Intermed GF IFN, announces the successful closing of the first corporate bond issue and the raising of a total of 45 million lei from Investors BVB. The two private placements, one in […]
At the end of a hectic week for low-rated corporate bonds, it is the Federal Reserve, not the Omicron coronavirus variant, that remains the biggest concern for investors in the asset class. By now, many debt investors have grown accustomed to the sharp swings in the markets after a surge in Covid-19 cases sparked a […]
JM Financial Group has launched a digital bond investment platform called Bondskart.com, to improve retail investor participation in the corporate securities market. The move follows the Reserve Bank of India’s Retail Direct Scheme which seeks to broaden the investor base for g-secs. The platform aims to create an ecosystem in which retail investors can easily […]
Good quality corporate bonds are not doing much to boost investor confidence this year. For example, the widely followed Markit iBoxx USD Liquid Investment Grade Index is down 5.18% year-to-date, adding another layer of frustration to the 2021 fixed income market. However, 2022 could bring better things with higher quality companies, especially if downgrades and […]
Advertising Chinese property developers recently missed payments on wealth management products and corporate bonds, which compete for the title of China’s riskiest assets. Major promoters raised funds through all available channels to maintain cash flow. Principal and interest from investment income frequently came from property sales, which have declined sharply this year. As a result, […]
As inflationary pressures continue, it may become difficult to obtain fixed income through bonds, but there is another option: securitized debt. “Rising inflation in the United States could end up being much better for consumers than for businesses, so investors should turn away from corporate bonds and into asset-backed securities and securities. ‘other securitized debt, […]
(Bloomberg) — Rising inflation in the United States could end up being much better for consumers than for businesses, so investors should shift away from corporate bonds and into asset-backed securities. assets and other securitized debt, according to Goldman Sachs Group Inc. strategists. Supply chain disruptions will likely limit corporate profits next year, which could […]
Mumbai: Sebi has proposed to introduce market makers in the corporate bond market. Market makers provide continuous two-way markets for buyers and sellers. The vast majority of bonds in global markets, including India, are traded over-the-counter (OTC) rather than on exchanges. Sebi proposed that stockbrokers and investment bankers could double as market makers for the […]
Monica Erickson, DoubleLine Capital Investment Grade Corporate Bond Portfolio Manager, assesses the state of the corporate bond market and its areas of weakness and profitability for investors. Video transcript BRIAN SOZZI: Okay, let’s get back to inflation and interest rates here. The bond market has come to know only a land of low interest rates. […]
Monica Erickson, investment grade corporate bond portfolio manager at DoubleLine Capital, assesses the state of the corporate bond market and its areas of weakness and profitability for investors. Video transcript BRIAN SOZZI: Well, back to inflation here and interest rates. The bond market has come to know only a low interest rate country. This rings […]
The pension fund body purchased securities worth Rs 1,873.84 crore issued by IDFC First Bank between July 2010 and May 2015. In Indiabulls Housing, EPFO had a total exposure of Rs 1,600 crore in September of this year. An investment of around Rs 11,000 crore made between 2010 and 2017 by the Employees Provident Fund […]
Taipei, Nov 12 (CNA) Yageo Corp., a leading Taiwanese manufacturer of passive electronic components, will issue up to NT$10 billion ($360 billion) in corporate bonds to boost working capital after the approval of this decision by its board of directors on Thursday. In a statement late Thursday, Yageo, which makes chip resistors, inductors and multilayer […]
National Treasury, Director General of Public Debt Management Office Wohoro Ndoho (centre) rings the bell at the Nairobi Stock Exchange (NSE) to launch the listing of the M-Akiba bond, a mobile-only commercial bond. [Jonah Onyango, Standard] The dark cloud that hung over the corporate bond market seems to be dissipating. With three companies – East […]
The Bank of England has plans to refocus its £ 20 billion corporate bonds on greener companies, as part of its new mandate to support the UK’s transition to net zero issuance. The central bank has said that in the future, companies will need to meet climate-related criteria for their bonds to be included in […]
Top-rated corporate bond issuers are used to having the world of debt at their feet. But markets are so distorted after years of quantitative easing that top-rated names find themselves pushed into tricky deadlines, while issuers a few rungs down seem to be racing for the roost. European investment grade bond investors are spooked. Stubbornly […]
Even though the effects of the ongoing pandemic are slowly dissipating, the risk of default is still apparent when investing in corporate debt issues, which can be resolved with a pair of FlexShares ETFs. Focus on Debt Quality is available from the comfort of a ETFs packaging with funds like the FlexShares Credit-Scored US Long […]
ISINs, which are 12 characters long, are used to uniquely identify securities such as stocks, bond warrants and commercial paper. In a bid to boost liquidity in the corporate bond market, the Securities Exchange Board of India (SEBI) on Friday suggested further capping the number of ISINs for such bonds issued on a private placement […]
(Bloomberg) — Inflation fears that have rattled short- and medium-term U.S. Treasuries this month could spell trouble for credit markets, Bank of America Corp strategists say. Concerns about rising inflation narrowed the spread between short-term and long-term Treasury yields. This kind of yield curve flattening has historically hurt investment-grade corporate bond yields, strategists wrote in […]
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The Fountain of the Fallen Angel or Fuente del Angel Caido in the Buen Retiro Park in Madrid, Spain … [+] inaugurated in 1885 getty It is fascinating to study mergers and acquisitions which have turned out to be huge blunders. So often the timing was horrible and the overpayers had no limits. When a […]
At the same time, important developments are underway for the first half of 2022, with new quotes on the Alternative Market, two new maritime bonds, while for the first time a major food distributor will also issue a bond. At a time of tremendous change across many industries, amid acquisitions, transactions and new trade deals, […]
AAs bond investors grow increasingly wary of the idea of rising interest rates in 2022, some are shedding or reducing their exposure to the asset class and putting that capital into cash investments. The problem is that money market funds, CDs and the like have barely noticeable returns, which means investors are taking some risk […]
“Overall, the corporate bond market remains very active and healthy,” said Adam Ditkofsky, portfolio manager and vice president at CIBC Asset Management, in an interview last week. Corporate bonds continued to outperform the broader Canadian bond market in the first eight months of the year as companies benefited from the economic recovery, Ditkofsky said. For […]
In a recent development, Coinbase issued a junk bond, and the market seemed hungry for the instrument. Currently, the US crypto exchange is registering more requests for these bonds every day. With these requests, the crypto exchange’s sales increased from $1.5 billion to $2 billion. Bonds are fixed investments that earn interest monthly. But when […]
The creation of an active corporate bond (CB) market is becoming increasingly urgent. Asset Reconstruction Companies (ARCs) need large-scale financing and are asking banks to lend to them. Instead, they should raise funds by issuing bonds. The government’s chief economic adviser, Sanjeev Sanyal, has rightly called on non-bank financial companies (NBFCs) to step up credit […]
Undersecretary of Finance, Gil Beltran. (Photo taken from his Facebook page) The ability of local businesses to raise more of their financing needs in the local debt market in recent years indicated continued investor confidence in the economy, the Department of Finance (DOF) said. In an economic bulletin on Saturday, DOF Undersecretary and Chief Economist […]
Outstanding local currency (LCY) corporate bonds in the Philippines reached more than 1.5 trillion pesos at the end of the second quarter, the finance department said, noting that several ongoing reforms will help boost demand for financial securities. In a statement over the weekend, the DoF said the LCY of 1.51 trillion pesos during the […]
Qatar corporate bonds have received an overwhelming response from international investors, especially given the inherent strength of the national economy.“Recent past issuances have seen an oversubscription in the order book, proving to the point that these entities derive their strength from a robust local economy, amid the challenges of the Covid-19 pandemic,” a source said. […]
The Dixie Fire in northern California, already the sixth-largest in state history, scorched a small town overnight and prompted area evacuationsweeks after Pacific Gas and Electric said its equipment may have started the fire. The three-week blaze comes during extreme weather and a historic drought in the state. Wednesday night the Dixie Fire destroy the […]
It’s been about two decades, but e-commerce in corporate bonds has finally made notable inroads into a market long known for its privacy and low-tech methods. According to a new report from the Greenwich Coalition, the growth of the $10.7 trillion electronic corporate bond market in the United States has increased by more than 100% […]
Ideas & Debate Why Kenya needs a recovery in the corporate bond market now Wednesday, June 30, 2021 Investment brokers at the Nairobi Securities Exchange (NSE) in Nairobi. PICTURES | TO FILE Since the successful issuance of the 25 billion shilling KenGen #ticker:KEGN public infrastructure bond in 2009, the local corporate bond market has yet […]
In the year ending May 31, corporate bonds returned 2.6%, compared to -4.4% for Government of Canada bonds and -3.5% for provincial bonds,” said Patrick O’Toole, Vice President, Global Fixed Income, CIBC Asset Management. Although this outperformance will not be as significant in the coming year, strong economic growth and low default risk should once […]
Say it, if you mean it. Brad Tank, director of fixed income investments at Neuberger Berman, believes the Federal Reserve will have a hard time telling investors the party is over, even if it never plans to support the corporate bond market again. US $ 10.7 trillion. “There now appear to be two types of […]
MicroStrategy Inc. is borrowing $ 400 million to buy more Bitcoin while reducing the value of its existing holdings. This is the very first sale of junk bonds used to fund purchases of the volatile cryptocurrency. The Tysons Corner, Va.-Based enterprise software company said in a document Monday that senior secure tickets would be available […]
Market regulator Sebi on Friday streamlined the centralized database framework for corporate bonds to further facilitate access to information for investors. By virtue of this, he provided an updated list of which data fields to keep in the database as well as how to classify them, Sebi said in a circular. The regulator also clarified […]
Diving Brief: JThe Federal Reserve could cause “temporary disruption” in debt markets as it begins this month to wind down an emergency bond-buying program it created in March 2020 to ease pandemic-induced turmoil in the corporate debt market, Moody’s Analytics said in a report. “It’s easier for the Fed to get into a market than […]
Photo by JamesBrey/iStock via Getty Images The riskiest assets in the bond market are showing widening spreads, with investors seemingly shying away from investing in the riskiest stocks as inflation fears mount. According to Joe Rennison in the FinancialTimes, “riskier assets have now started to show signs of caution.” The extra yield above Treasuries that […]
The Federal Reserve said it would start selling the corporate bonds and fixed-income funds it bought to stabilize the financial system last year, undoing unprecedented emergency measures that electrified markets. and drives down borrowing costs for companies reeling from the pandemic. The U.S. central bank said on Wednesday that assets acquired through its so-called Secondary […]
However, the central bank accepted Rs 26,853 crore in three more rounds of long-term papers exceeding the expected auction size. Synopsis An unexplained bias in the yield curve means that short-duration sovereign bonds are generating almost as much as the benchmark 10-year. In such an interest rate environment, project finance company bonds – of longer […]
Foreign portfolio investors (REITs) largely shunned Indian corporate bonds in FY21. Amid risk aversion to NBFC debt instruments and a search for fixed income benchmark, the use of REITs in Indian corporate debt more than halved to 23.14% in March 2021, from 54.49% for the same period last year. “The cost of hedging INR in […]
It’s been a weird and wild three months in financial markets, culminating in the worst quarterly loss for most of the $10.6 trillion U.S. corporate bond market since the 2008 global financial crisis. The investment grade tracking ICE BofA US Corporate Index on Wednesday recorded a negative total return of -4.495% for the first quarter […]
The Securities and Exchange Board of India will establish a Corporate Debt Market Development Fund (CDMDF) to provide liquidity to mutual funds and other institutional investors participating in the corporate bond market, has said Finance Minister Nirmala Sitharaman. As the financial sector evolves from a bank-dominated system to a market-oriented one, supporting financial markets has […]
The corporate bond repo is slowly picking up speed, although the volume is nowhere near what it should be to consider it a serious market. Surprisingly, the rates offered in the market are at or below the repo rate offered by the Reserve Bank of India (RBI) through its Liquidity Adjustment Facility (LAF). Typically, the […]
The sensitivity of U.S. corporate bonds to a rise in interest rates is near record highs, just as higher growth and inflation are expected to return in the coming months as the country’s economy, hit by the coronavirus, is recovering. Duration, which reflects the time it will take for the price of debt to be […]
In a bid to inject more liquidity into the nascent corporate bond market, Union Finance Minister Nirmala Sitharaman has announced the creation of a permanent institutional framework, but more specific details will tell whether this could be a success, according to bond market participants. “To build confidence among corporate bond market participants […]
Editor’s note: Seeking Alpha is proud to welcome GSN Investments as a new contributor. It’s easy to become a Seeking Alpha contributor and earn money for your best investment ideas. Active contributors also get free access to SA Premium. Click here to find out more “ Corporate bonds have an important role to play in […]
The average yield on investment-grade U.S. corporate bonds is now below a key measure of investors’ inflation expectations, a first that shows how much demand for fixed-income assets is reducing their potential returns. On Friday, the expected annual inflation rate over the next decade – derived from the difference in yield between nominal and inflation-adjusted […]
Indian bond yields tightened last month as the RBI refrained from cutting policy rates amid rising CPI inflation. Even though it was on the expected lines, the markets were disappointed as they have some expectations, such as an increase in the held-to-maturity (HTM) limits for banks, the timing of open market operations (OMO) and Operation […]
Tensions in financial markets have eased significantly in the months following the peak coronavirus panic in March, but gains are slowing and key indicators still point to market risks being higher than they are. were before the crisis. “The easy part of the liquidity-driven credit recovery is over,” wrote Rob Robis, chief fixed income strategist […]
Editor’s note: Read the latest news on how the coronavirus is rocking the markets and what investors can do to navigate it. The combination of tightening credit spreads and falling interest rates led to an admirable performance across the fixed income sector in the second quarter. The Morningstar US Core Bond Index (our broadest measure […]
(Bloomberg Opinion) – From the moment the Federal Reserve announced how it would buy bonds for its $250 billion secondary market corporate credit facility, something seemed off. After all, the central bank had already established criteria for buying individual corporate bonds, separate and apart from exchange-traded funds. And yet, the Fed this week unveiled a […]
The Federal Reserve began buying corporate bonds on Tuesday under a $250 billion program funded by the CARES Act, which was approved in March. The idea is to support companies and their employees. When a company wants to borrow money, it can issue bonds. Buyers of these bonds lend money to these companies. Now the […]
The Federal Reserve said on Monday it would expand its efforts to support the corporate debt market by buying a “broad and diverse market index” of U.S. corporate bonds in the secondary market. The central bank says purchases of individual corporate bonds will be used to create a ‘corporate bond portfolio’ that meets the Fed’s […]
The Federal Reserve is expanding its foray into corporate credit to now buy bonds from individual companies, in addition to the exchange-traded funds it already buys, the central bank announced on Monday. As part of an ongoing effort to support market functioning and ease credit conditions, the Fed has added features to its secondary market […]
Most investors are aware of the historic nature of the stock market rally. Since the March 23 lows, the S&P 500 (SPY) has rebounded nearly 40%. Such large gains over such a short period of time have not been seen since the Great Depression. A stunning recovery is also underway in investment grade corporate bonds, […]
Mumbai: Lockdown seems to have opened the floodgates for corporate bond issues in India. The first two months of FY21 were the best in decades, with companies raising Rs 1.63 lakh crore – more than double the same period last year and nearly four times from April to May during of FY19 – as rates […]
The Federal Reserve is buying corporate bonds for the first time in an effort to curb the economic fallout from the coronavirus. The central bank will start buying $750 billion in corporate bonds on Tuesday with its secondary market corporate credit facility. The program will prioritize ETFs with higher quality debt and some high yield […]
By increasing liquidity and improving the functionality of corporate bond markets, the US Federal Reserve’s (Fed) new programs have been good news in the near term. Still, a number of unknowns remain regarding the rollout of these programs, and we anticipate potentially difficult impacts for the most indebted companies over the longer term. The Fed’s […]
Corporate bonds are now at a bargain price (Photo by Barry Lewis/InPictures via Getty Images) In pictures via Getty Images At the start of 2020, corporate bonds were friendless. Revenues looked meager and their potential for capital growth limited. High issuance had left a glut of supply, while investors had seen their protections eroded by […]
While the direction of the market still depends on the slowing of the coronavirus epidemic, some signs are emerging that the bulk of the sale of stocks and corporate bonds is behind us, according to the chief investment strategist of Bank of America, Michael Hartnett. The first is the magnitude of the decline. More than […]
A pedestrian walks past the Federal Reserve Building on Constitution Avenue in Washington on March 19, 2019. Leah Millis | Reuters The Federal Reserve unleashed another round of bazookas today, including a flurry of programs to buy more Treasuries and mortgage-backed securities. But one move that surprised many was the decision to buy corporate bonds […]
Sudden sell-offs in the markets have a nasty way of exposing vulnerabilities that take on a disruptive life of their own and risk amplifying the initial shock through a self-feeding cycle. It is important to remember, in this context, the large amount of high quality US corporate debt that hangs over the high yield market […]
The longer-term portion of the US corporate bond market is expected to heat up as the US government plans to reintroduce 20-year debt issuance later this year to help fund its growing budget deficit. An issuance of 20-year Treasury bills will likely increase overall liquidity in this area of the bond market and make it […]
A preponderance of data suggests the economy is headed for one of two outcomes; Either economic growth will slow down and turn into a recession, or it will come back and fan the small but growing fire of inflation. With extremely low corporate bond spreads, the first outcome would likely cause spreads to widen significantly […]
It was a popular narrative in capital markets in 2018. The swarm of corporate bonds with the lowest investment grade was believed to be on the verge of a descent to the high-yield level – the term polite for junk – as soon as the inevitable economic downturn hit. In this case, these former members […]
Deere DE 0.74% & Co. on Tuesday sold 30-year bonds at a record yield for U.S. corporate debt of that maturity, taking advantage of falling U.S. Treasury yields to lock in favorable interest rates. On a busy day for corporate bond issuance, Deere sold 30-year bonds at an initial yield of 2.877%. This broke the […]
Hungry and desperate bond bears, hungry for what they see as a long-awaited feast and exasperated by another rally in long-term Treasuries, have recently sniffed out an unknown target: US corporate bonds. Bond yield charts confirm a dismal year for high quality corporate debt. The market slice rated BBB by Standard & Poor’s tracked junk, […]
Bond buyers are urged to stay at the shallow end of the yield curve to avoid unnecessary duration risk in a low interest rate environment. The credit quality of these investments is less discussed. When interest rates are close to zero, companies and other entities go into debt. The difference in yield between higher quality […]
Hungry and desperate bond bears, hungry for what they see as a long-awaited feast and exasperated by another rally in long-term Treasuries, have recently sniffed out an unknown target: US corporate bonds. Bond yield charts confirm a dismal year for high quality corporate debt. The slice of the market rated BBB by Standard & Poor’s, […]
“It’s actually quite smart that they issued a lot of long-term debt at very low interest rates,” Pierson said. “I’m not saying they’re completely immune to rising interest rates, but it’s been good financial management.” The other notable change in investment grade corporate bonds is a deterioration in overall quality. In 2007, 27% of the […]
The $1.5 trillion Tax Cuts and Jobs Act of 2017 is expected to bolster corporate earnings, making corporate bonds attractive additions to a balanced portfolio, but there just so happens to be some d other reasons to be optimistic – and cautious – about these investments. Lower corporate tax rates immediately increase cash flow, which […]
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Bonds, in general, are simply debt instruments that allow companies, or the government, to finance their capital needs by finding investors who agree to lend them an amount in exchange for interest for a period, before repaying the principal amount of the loan in full. . There are specific rates and periods that the bond […]
Federal Reserve Chair Janet Yellen delivers semiannual testimony on ‘The Federal Reserve’s Oversight and Regulation of the Financial System’ before the House Financial Services Committee in Washington, U.S., September 28, 2016. REUTERS/Joshua Roberts WASHINGTON (Reuters) – The Federal Reserve may be able to help the U.S. economy during a future downturn if it can buy […]