Corporate bonds

Etron Technology: Issuance n°3 of unsecured corporate bonds

Close Provided by: Etron Technology, Inc. SEQ_NO 4 announcement date 2022/03/18 Announcement time 23:43:46 Topic Issue no.3 of unsecured corporate bonds Date of events 2022/03/18 What item it responds to paragraph 11 Declaration 1.Date of the board of directors resolution:2022/03/18 2.Name [issue no.__ of (secured, unsecured) corporate […]

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

How to Issue Corporate Bonds in Turkey – Company Law/Commercial Law

Corporate bonds as a fundraising method Within the complex structure of capital market instruments, issuing corporate bonds appears to be an effective method of raising new funds for companies. Allowing companies to quickly access new funds can support new hiring practices and benefit the economy, so the practice of issuing corporate bonds can enable companies […]

Corporate bonds

Talking heads – Testing times for corporate bonds

02/28/2022 1 min read Increased market volatility and uncertainty about the pace at which the ECB will proceed with its bond purchases are the main tests that investors in European corporate bonds are currently facing. Mitigating factors such as strong earnings, strong cash positions and low defaults could be negated by concerns that the central […]

Corporate bonds

The boom in foreign currency corporate bonds after 2008

The boom in foreign-currency corporate bonds after 2008: why emerging markets are gaining momentum Charles Calomiris, Mauricio Larrain, Sergio Schmukler, Tomás Williams February 28, 2022 After the 2008 global crisis, emerging market companies dramatically increased their issuance of US dollar-denominated bonds. Focusing on the rise of foreign currency bond issuance and overall corporate debt, several […]

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

EXCLUSIVE Brazil considering tax exemption for foreign investors in corporate bonds, says Ministry of Economy

A chart showing the real exchange rate of the U.S. dollar and that of several foreign currencies is pictured in Rio de Janeiro, Brazil, December 16, 2015. REUTERS/Ricardo Moraes Join now for FREE unlimited access to Reuters.com Register BRASILIA, Feb 16 (Reuters) – The Brazilian government is considering an income tax exemption for foreigners who […]

Corporate bonds

Voluntary Retention Path: Corporate Bonds May See REIT Flow Increase After VRR Limit Hike

MUMBAI – Canadian pension funds, sovereign wealth funds from Singapore and Norway and long investors from the United States are expected to increase their investments in Indian fixed income securities after the central bank raised ownership limits on Thursday. foreign in Indian bonds. Although the upper limit could have been set taking government bonds into […]

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

​AkademikerPension drops €269 million of fossil fuel corporate bonds | News

Denmark’s AkademikerPension has announced it is selling DKK 2 billion (€269 million) worth of oil and gas bonds issued by fossil fuel companies including Petroleos Mexicanos, Gazprom, Qatar Energy, Petrobras and SouthWestern Energy – after selling the shares of these companies. The 20.1 billion euro pension fund, which mainly covers upper secondary teachers, said that […]

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

HPF: CEF Preferred Stock and Corporate Bonds (NYSE: HPF)

parmuratdeniz/E+ via Getty Images Thesis John Hancock Preferred Income Fund II (HPF) is a closed-end fund focused on preferred shares and preferred convertible securities. The primary objective of the fund is a high level of income, followed by preservation of capital. The vehicle aims to invest at least 50% of the fund’s holdings in higher […]

Corporate bonds

Can Nigerian startups adopt corporate bonds to finance themselves?

As we settle into 2022, the numbers for African tech fundraising have crystallized. Last week, Partech Africa published a report on the total startup funding raised in Africa, which is $6 billion. This record was almost 4 times the amount raised in 2020, a year in which fundraising for the ecosystem declined for the first […]

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

UK corporate bonds sell off after BoE flags sell off

UK corporate bonds sold off on Thursday after the Bank of England raised interest rates and unexpectedly announced its decision to sell off its small stock of corporate debt entirely. The BoE’s asset purchase programme, introduced in 2016, allows the bank to buy sterling-denominated bonds from companies “deemed to be making a significant contribution to […]

Corporate bonds

With rates moving, shorten the duration of corporate bonds

In a rising rate environment, bond investors are caught between a rock and a hard place, but one solution is to add shorter-duration corporate bonds. The Federal Reserve is already considering raising rates this year, which could erode bond incomes over time, especially if inflation continues to soar. Corporate bonds could be the sweet spot, […]

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

Analysis: Tech-light corporate bonds escape worst of stock market woes

A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., January 21, 2022. REUTERS/Brendan McDermid Join now for FREE unlimited access to Reuters.com Register LONDON, Feb 1 (Reuters) – The U.S. Federal Reserve is on a warpath and global equities had their worst start to the year since […]

Corporate bonds

Analysis-Tech-Light Corporate bonds deviate from worst stock market woes | Investment News

By Yoruk Bahceli and Saikat Chatterjee LONDON (Reuters) – The U.S. Federal Reserve is on a warpath and global equities had their worst start to the year since 2016, but corporate credit, with limited exposure to the hardest-hit tech companies, is showing signs of remarkably resistant. While US and European corporate bonds – those rated […]

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 […]

Corporate bonds

Use Short Term Corporate Bonds Like These 4 To Wait For Next Fed Rate Hikes

Fed rate hike expected throughout 2022 Getty It’s now official, the Federal Reserve is fueling up for its anti-inflationary rate hikes. The Fed’s reasoning for raising interest rates is well documented. The question is how best to manage it in your investment portfolios? Should you adopt a bunker mentality and settle for having money? Maybe […]

Corporate bonds

CONDITIONS FOR PURCHASING CORPORATE BONDS

Tender procedure, 2022-02-02 Obligations Bonds issued in SEK by Swedish non-financial corporations. The following bonds are eligible for delivery: STOCKHOLM EXERGI HOLD: SE0012193829, 2026-09-11 FORTUM VARME HOLDING SAM: SE0010599019, 2025-02-24 SPECIALFASTIGHETER SVERI: SE0010600270, 2024-11-28 SPECIALFASTIGHETER SVERI: SE0011869916, 2025-05-12 Holmen AB: SE0013359437, 2024-10-29 Holmen AB: SE0012676708, 2025-02-12 ELECTROLUX AB: XS2152294679, 2023-04-06 ELECTROLUX AB: XS2081016920, 2024-11-19 AB […]

Corporate bonds

What are corporate bonds and how do they work?

Corporate bonds are excellent investments for those seeking higher yields and can withstand increased risk Kameleon007 for iStockphoto; Cloth Contents What is a corporate bond? In a nutshell, a corporate bond is like a loan from an investor to a company, which the company repays with interest on the bond’s maturity date. Companies see bonds […]

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 […]

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

RBI proposes to add corporate bonds to banks’ HTM category

The Reserve Bank of India (RBI) on Friday proposed to allow banks to keep corporate bonds, even shares of subsidiaries, associates and joint ventures in the held-to-maturity (HTM) category. of their investment books. An investment in the HTM category does not need to be valued at the current market price and therefore banks do not […]

Corporate bonds

Record buyback of corporate bonds not a problem

“Repayment of corporate bonds is routine and not all companies necessarily renew loans. The BFSI sector, which is engaged in lending business, may be eager to borrow,” said Ajay Manglunia, MD and Head of Institutional Fixed Income at JM Financial. By Manish M Suvarna Around Rs 5.6 lakh crore of corporate bonds are due to […]

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

Reliance Jio seeks to raise Rs 8,000 crore through corporate bonds

India’s leading telecommunications company is seeking to raise Rs 8,000 crore through corporate bonds. Reliance Jio Infocomm will sell corporate bonds in the local market next week to raise funds, The Economic Times reported. The corpus generated from the bonds will be used to repay dues the company accrued from buying spectrum in the 2014 […]

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

Should we invest in corporate bonds via new platforms?

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 […]

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

Accessing corporate bond liquidity

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, […]

Corporate bonds

Demand for U.S. corporate bonds could rise thanks to foreign purchases, JPMorgan expert says

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 […]

Corporate bonds

Portfolio Management Services will transact 10% on corporate bonds through a quote request platform: SEBI

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 […]

Corporate bonds

The largest private placement of corporate bonds on the AeRO market: TEILOR Holding raises RON 45 million from BVB investors. Filip & Company provides legal assistance

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 […]

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

Is securitized debt a better option than corporate bonds?

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, […]

Corporate bonds

Goldman says investors should look to debt securitized from corporate bonds

(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 […]

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

Uncertainty over EPFO’s Rs 11,000 crore investment in corporate bonds

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 […]

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

Bank of England to refocus corporate bonds on greener companies

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 […]

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, new listings in preparation for the Athens stock exchange

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, […]

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

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

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

Qatar corporate bonds receive overwhelming response from global investors

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. […]

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

Fed sale of corporate bonds could lead to ‘hiccups’ in debt issuance: Moody’s

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 […]

Corporate bonds

Sebi streamlines centralized database framework for corporate bonds

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 […]

Corporate bonds

Federal Reserve cancels emergency purchases of US corporate bonds

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 […]

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

REIT outflows from Indian corporate bonds at a record ₹36,952cr in FY21

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 […]

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

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

Demand for corporate bonds pushes inflation-adjusted yields to zero

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 […]

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

Easy gains in corporate bonds are ‘over’ as yield tightening slows – risk watch

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 […]

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 will increase its purchases of corporate bonds on the secondary market

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 […]

Corporate bonds

The Fed says it will start buying individual corporate bonds

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 […]

Corporate bonds

The Historic Corporate Bond Rally (NYSEARCA:LQD)

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, […]

Corporate bonds

Corporate bonds: corporate bond issues more than doubled in April-May

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 […]

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

Bank of America says stock prices and corporate bonds are at rock bottom

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 […]

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

Deere sells 30-year corporate bonds at record yields

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 […]

Corporate bonds

Investing: 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 market slice rated BBB by Standard & Poor’s tracked junk, […]

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

How it got riskier to own high-quality corporate bonds

“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 […]

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 […]

Corporate bonds

Simple Math Terms for Fixed Coupon Corporate Bonds

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 […]