Corporate bonds

A draft decree aims to reduce the risks for investors in corporate bonds – Company law/commercial law

To print this article, all you need to do is be registered or log in to Mondaq.com. After the issuance of Executive Order 153, MOF became aware of certain risks associated with non-compliance and/or high-risk financing via corporate bonds. The draft decree aims to reduce the risks for investors and to make the market more […]

Corporate bonds

LedgerEdge leverages ZeroBeta for corporate bond pricing and valuation

The BlueShift Risk Platform is a cloud-native multi-asset, risk, and market data management platform that aims to help market participants make informed decisions. LedgerEdge, a next-generation ecosystem for corporate bond trading, has selected ZeroBeta to support its real-time fixed income pricing and valuation requirements. ZeroBeta provides a financial market infrastructure specializing in risk, collateral and […]

Corporate bonds

A draft decree aims to reduce the risks for investors in corporate bonds

After the issuance of Executive Order 153, MOF became aware of certain risks associated with non-compliance and/or high-risk financing via corporate bonds. The draft decree aims to reduce the risks for investors and to make the market more transparent. However, with the current project, Vietnamese companies could be negatively impacted. LEGAL UPDATE On December 31, […]

Corporate bonds

The price of AAA-rated PSU corporate bonds at G-Sec level on strong demand

Nine public entities have operated the bond market since November 2021, of which only NTPC and IOC were manufacturing entities. By Manish M Suvarna AAA-rated corporate bonds issued by public entities over the past few days have been priced at a level of government securities with a similar maturity due to strong investor demand. In […]

Corporate bonds

Alfa Laval issues corporate bonds

LUND, Sweden, February 11, 2022 /PRNewswire/ — Alfa Laval – a world leader in heat transfer, centrifugal separation and fluid handling – has raised 600 million euros on the corporate bond market, within the framework of an existing EMTN programme. The bonds will be listed on the Irish Stock Exchange. Alfa Laval issued two corporate […]

Corporate bonds

Xtrackers by DWS offers controlled risk exposure to high yield corporate bonds with HYRM

Xtracker by DWS threw an ETF offering dynamic, risk-controlled exposure to US dollar high yield corporate bonds. the Xtrackers Risk Managed USD High Yield Strategy ETF (NYSE Arca: HYRM) tracks the Adaptive Wealth Strategies Risk Managed High Yield Index, which uses a daily algorithm to dynamically adjust exposure between bonds and cash equivalents. HYRM is […]

Corporate bonds

Regulation expected to limit corporate bond growth | Bank and finance

Illustrative photo The government has now taken steps to tighten control under Circular 16/2021/TT-NHNN on the purchase and sale of corporate bonds by credit institutions and branches of foreign banks, which will be effective from January 15, 2022. It remains to be seen whether this regulation will help to tighten banks’ investment in corporate bonds […]

Corporate bonds

Corporate bond issues will benefit from standards offered by RBI: India Ratings

MUMBAI: The Reserve Bank of India (RBI) working paper on prudential standards for banks’ investment portfolio, if implemented, is expected to bring about structural changes by allowing corporate bonds to qualify for the held-to-maturity (HTM) portfolio, said India Ratings and Research. The proposed inclusion of corporate bonds will catalyze bank investments in corporate bonds, especially […]

Corporate bonds

RBI Investment Corporate Bonds: Proposed Changes to RBI Investment Standards to Usher in Structural Changes in the Bond Market: Report

Mumbai: The proposed revision of prudential standards for banks’ investment portfolio by the Reserve Bank will bring about structural changes in the system by allowing corporate bonds to qualify for the held-to-maturity portfolio ( HTM), if implemented, according to a report by ratings firm Ratings of India. “The proposed inclusion of corporate bonds will catalyze […]

Corporate bonds

Investment grade corporate bonds head for 5th worst monthly return on record

Debt sold by the biggest companies stumbled at the start of 2022, with most of the nearly $11 trillion U.S. corporate bond market poised for its fifth-worst monthly return on record. Investment grade corporate bonds, debt issued by many leading S&P 500 SPXs, +1.89% companies, were heading for a 3.1% loss on a total return […]

Bank

World Bank president slams Microsoft over Activision Blizzard deal

On Tuesday, Microsoft announced it was buying Activision Blizzard for $68.7 billion. The deal sent shockwaves through the gaming industry and the stock market. For example, Sony’s market value dropped by around $20 billion a day after the news broke. Even the World Bank had to share its opinion on the massive deal, in a […]

Bank

Stock futures flat after selloff on Wall Street, more bank profits to come

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, United States, January 10, 2022. Brendan McDermid | Reuters U.S. stock futures were flat in overnight trading on Tuesday after a sell-off on Wall Street sparked by soaring bond yields. Dow futures only rose 10 points. S&P 500 futures gained […]

Corporate bonds

Wall Street banks have their eyes on corporate bonds

Oith the end of bond purchases by the Federal Reserve, the big Wall Street banks are salivating at the idea of ​​buying corporate bonds. With inflation soaring, the Fed is also looking to raise interest rates this year as the economy continues to recover from the pandemic. Before that happens, banks are looking to add […]

Bank

As Federal Reserve plans to raise interest rates, China’s central bank moves in another direction – WSJ

Have a good day. Discussing the possibility of raising the Fed’s short-term interest rate target, New York Federal Reserve Chairman John Williams said on Friday that “Given clear signs of a labor market very solid, we are approaching a decision to start this process.” The vice chairman of the Federal Open Market Committee responsible for […]

Corporate bonds

Corporate bonds will need to offer better yields to compete with government bonds: report

Corporate bond issuers in India will have to offer higher yields on their papers as they compete with government issued government bonds. At the same time, rising yields on these bonds have led to a general decrease in the number of bond issues, experts said, as reported by the Mint. “Corporate bond issuance has fallen […]

Corporate bonds

Corporate bonds under strict control this year | Business

A bank employee handles cash. (Photo: VNA) Hanoi (VNS/VNA) – As the corporate bond market has shown signs of rapid growth, this capital raising channel will be closely inspected and monitored this year. The corporate bond market flourished with an estimate annual issue value over VND500 trillion (21.9 billion) in 2021, bringing the total value […]

Corporate bonds

PDS plans to launch the country’s first digital corporate bonds in February

THE Philippine Dealing System Holdings Corp. (PDS) will launch the country’s first digital corporate bond in February to deepen local capital markets, the Department of Finance (DoF) said. The show will use distributed ledger technology, where transactions are recorded across multiple sites instead of a centralized database. The Chairman and CEO of Philippine Dealing and […]

Corporate bonds

Sebi revamps secondary markets, mutual fund and corporate bond advisory boards

New Delhi: Market regulator Sebi has restructured its three advisory boards relating to the secondary market, mutual funds, corporate bonds and securitization. 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 […]

Corporate bonds

Sebi revamps advisory boards on secondary markets, mutual funds and corporate bonds

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 […]

Corporate bonds

Corporate bonds could reward income investors in 2022

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 […]

Corporate bonds

Double whammy for low-rated corporate bonds

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 […]

Corporate bonds

What to watch with corporate bonds in 2022

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 […]

Corporate bonds

Wealth Management Products and Corporate Bonds – The Diplomat

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, […]

Corporate bonds

Sebi: Sebi mulls over market-making mechanism for corporate bonds

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 […]

Corporate bonds

Investors would benefit from “stable credit profiles and low interest rates”, analyst says

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. […]

Corporate bonds

Investors would benefit from ‘stable credit profiles, low interest rates’, analyst says

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 […]

Corporate bonds

Is the corporate bond market on the mend, or is it?

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 […]

Corporate bonds

SEBI proposes capping ISINs for corporate bonds to improve liquidity

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 […]

Corporate bonds

Corporate bonds remain stable so far

“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 […]

Corporate bonds

For an active corporate bond market

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 […]

Corporate bonds

Outstanding corporate bonds rose to P 1.52T at the end of June 2021

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 […]

Corporate bonds

Outstanding PH corporate bonds hit P1.5T in June

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 […]

Corporate bonds

Electronic trading of US corporate bonds is finally taking off. But it’s still early, says this investor

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% […]

Corporate bonds

Why Kenya needs a recovery in the corporate bond market now

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 […]

Corporate bonds

Fed must say ‘it won’t buy corporate bonds anymore’ to break ‘feedback loop’, says bond CIO

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 […]

Corporate bonds

Another concern: Corporate bond yield spreads are widening

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 […]

Corporate bonds

US corporate bonds post second-worst quarterly loss in history. Why not everything is bad

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 […]

Corporate bonds

Sebi to create fund to buy bonds of stressed companies (FM Sitharaman)

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 […]

Corporate bonds

The budget provides for the creation of a permanent framework for the purchase of corporate bonds

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 […]

Corporate bonds

Corporate Bonds: How Long Can Low Spreads Between G-Sec and Corporate Bonds Last?

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 […]

Corporate bonds

Corporate bonds stand out in the second quarter

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 […]

Corporate bonds

The Fed makes history by buying $750 billion in corporate bonds

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 […]

Corporate bonds

The Short and the Long of the Fed’s Corporate Bond Buying

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

VCLT: Long-term corporate bonds offer the worst of both worlds (NASDAQ: VCLT)

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 […]

Corporate bonds

Why corporate bonds are risky with higher interest rates | Obligations

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 […]

Corporate bonds

The growing risk of corporate bonds

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, […]

Corporate bonds

Why You Should Be Optimistic About Corporate Bonds | Obligations

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 […]