Bank

EUR/USD technical analysis: waiting for the Central Bank

The price of the EUR/USD currency pair may continue to move in tight ranges until the US Federal Reserve announces its monetary policy decision update. Today is the most important date for global markets in general and the forex market. Markets are on a date to raise US interest rates for the first time since […]

Bank

What the Bank of Canada’s rate hike means for you – Mortgage Matters

Picture: Contributed As expected, the Bank of Canada raised its overnight rate by 0.25% last Wednesday. The overnight rate determines the rate that banks use to lend money to each other and any change in this rate is passed on to consumers by changing the rates of some of the banks’ lending products. Adjustable rate […]

Bank

Interest rates: the Bank of Canada announces an increase

OTTAWA- The Bank of Canada raised its key interest rate for the first time since cutting the benchmark rate to near zero at the start of the COVID-19 pandemic, in a bid to fight interest rates. inflation which are expected to continue to rise from their current three levels. -decade high. The central bank on […]

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 […]

Credit score

Can you get a payday loan with a credit score of 550?

If your credit score is 550, you can only qualify for a personal loan. However, it is almost impossible to obtain large loans with low credit scores. This means you need to look for alternative financial solutions or improve your credit score. In this article, I will explain various things you need to know about […]

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 […]

Bank

Private debt poses hidden risk for developing countries, warns World Bank

Reuters February 16, 2022, 6:10 PM Last modification: February 16, 2022, 6:15 p.m. Carmen Reinhart, Minos A. Zombanakis Professor of the International Financial System at Harvard Kennedy School, attends the annual meeting of the World Economic Forum (WEF) in Davos, Switzerland January 17, 2017. REUTERS/Ruben Sprich/File Photo/File Photo “> Carmen Reinhart, Minos A. Zombanakis Professor […]

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 […]

Credit cards

Best credit cards of February 2022 | Personal finance

Flexible tips We also researched credit cards that let you redeem rewards in multiple ways, or at the very least could be redeemed for statement credits to cover purchases. Keep in mind that there are also many excellent airline and hotel credit cards, which you should consider if you prefer to earn points in a […]

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 […]

Credit cards

US has more credit cards than ever as issuance jumps in 2021

U.S. lenders issued more credit cards than ever last year, with a growing share going to consumers with lower credit scores. A record 196 million Americans held cards at the end of 2021, according to a report by credit data agency TransUnion. In the third quarter, the last for which detailed figures are available, the […]

Corporate bonds

Tech-light corporate bonds escape worst of stock market woes

Even though US investment grade credit risk premia have reached their highest level in a year, they are at levels similar to those of early February 2020. Credit may have been boosted less by central bank stimulus; US IG debt holders have returned 9% through 2020-21, while US equities have returned 47%. Many companies also […]

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

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 […]

Bank

The 2022 budget is expected to increase market volatility; Top choice ICICI Bank, L&T and SBI

Jayesh Bhanushali, AVP, Research, IIFL Securities, said he expects markets to remain under some selling pressure for the February series. In an interview with Kshitij Anand of Zeebiz, Shah said that we have entered a bullish sell market. With the US Fed expected to raise interest rates and shrink its balance sheet by early March, […]

Credit cards

Can you have too many credit cards in your wallet?

Krakenimages.com / Shutterstock.com Editor’s Note: This story originally appeared on The Penny Hoarder. After a big spending spree, you might ask yourself, “Do I have too many credit cards? » Like most things, the answer is not clear cut. And while having multiple credit cards isn’t necessarily bad, there’s such a thing as having too […]

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 […]

Bank

Reserve Bank set to face inflation problem and rate hike dilemma in 2022

One word kept interest rates near zero in the developed world last year, but it is disappearing faster than the value of a stockpile of out-of-favor memes. This word was “transient”. According to the Macquarie dictionary, it means “during a short time” – a definition which itself requires some definition. The noun to which the […]

Bank

Bank of America Stock: Buy Ahead of Fed Rate Hike (NYSE: BAC)

Massimo Giachetti/iStock Editorial via Getty Images This article is part of “Charlie Munger’s Portfolio” series, in which I dive into the legendary investor’s best long-term investments. Following my recent coverage of Wells Fargo & Company (WFC) and Alibaba Group Holding Limited (BABA), which rank second and third in Munger’s portfolio, it’s time to explore Munger’s […]

Credit score

FICO Score vs Credit Score

Your three-digit credit score is a measure of how well you manage your finances. There are different types of credit scores that lenders can use to assess risk when lending someone money, including FICO credit scores. Understanding the difference between credit scores and FICO scores and how they work is important for maintaining good financial […]

Credit score

10 Moves That Will Boost Your Credit Score in 2022

s4svisuals / Shutterstock.com Editor’s Note: This story originally appeared on The Penny Hoarder. If you want to get your finances in order, here’s a good New Year’s resolution: improve your credit score. Many New Year’s resolutions fail because they are so extreme. Think about all the weight loss and money saving goals that crop up […]

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 […]

Bank

Reserve Bank must prevent capital flight – Jammu Kashmir Latest News | Tourism

Bharat JhunjhunwalaData provided by the Reserve Bank of India tells us that the country’s capital account has been negative for the past three years. This means that the amount of capital that has entered is less than the amount of capital that has left the country. Indeed, the negative account was larger during the months […]

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 […]

Bank

2 Fat yield increases by up to 10%, to capitalize on rate increases

svetikd/E+ via Getty Images Co-produced with “Hidden Opportunities” introduction Since the start of the pandemic, our economy has been given a major boost by the US government. Months of massive quantitative easing and stimulus checks have left Americans swimming in big money, driving a monster rally from the lows of March 2020. The investing community […]

Bank

Retail sales, bank profits, collapse of talks with Russia

© Reuters. By Geoffrey Smith Investing.com — Retail sales data will provide a further indication of market concern over rising interest rates and the strength of the economy. Bank earnings kick off fourth-quarter reporting season and diplomatic talks aimed at stopping another Russian invasion of Ukraine break down with no progress. European energy prices are […]

Credit score

Do Multiple Credit Cards Help Your Credit Score?

Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. The largest collection of valid credit cards belongs to Guinness World Record […]

Credit score

Future AI developments could make your credit score obsolete

Hear from CIOs, CTOs, and other senior executives and leaders on data and AI strategies at the Future of Work Summit on January 12, 2022. Learn more This article was written by Frederik Bussler, consultant and analyst. About one in four American adults are underbanked, which means they are underserved by mainstream finance and depend […]

Credit cards

How many credit cards is too much? | pennyhoarder

After a big spending spree, you might ask yourself, “Do I have too many credit cards?” “ Like most things, the answer is not clear cut. And while having multiple credit cards isn’t necessarily bad, there is such a thing as having too many, especially depending on how you use them and which ones you […]

Credit cards

Banks make it easier to get credit cards

Lenders are once again welcoming borrowers with less than pristine credit, a vote of confidence in the health of the US economy and Americans’ finances. An estimated 29.2 million general purpose credit cards were issued to people with credit scores of 660 and below last year, according to projections by credit reporting firm TransUnion, up […]

Credit cards

Buy Now Pay Later company Klarna says ‘credit cards pose the real risk’

Friday 07 January 2022 15:51 Buy now, pay later, companies like Klarna should be FCA regulated Buy Now Pay Later (BNPL) Fintech Klarna has sought to deflect criticism of credit card providers as the government prepares to crack down on BNPL providers, documents released today reveal. BNPL companies have come under fire in recent months […]

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 […]

Credit cards

Best credit cards of January 2022 | Personal finance

Flexible tips We also researched credit cards that let you redeem rewards in multiple ways, or at the very least could be redeemed for statement credits to cover purchases. Keep in mind that there are also many excellent airline and hotel credit cards, which you should consider if you prefer to earn points in a […]

Credit score

Save on Bills and Boost Your Credit Score in 2022

Managing household finances can be a difficult task, especially as our economy continues to recover from the Covid-19 pandemic. In fact, American households spend more than $4.4 trillion annually on recurring bill payments, and getting those bills under control is imperative to maintaining their financial health. Another thing to watch out for is the costs […]

Credit score

7 Steps To Improve Your Credit Score Now

If your credit score leaves something to be desired, don’t worry. There are steps you can take to increase this score and improve your financial situation. There are many benefits to having a high credit score. This can lead to lower interest rates on credit cards, student loans and personal loans, or even your mortgage. […]

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 […]

Credit score

How Does Refinancing Affect Your Credit Score?

Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. With mortgage interest rates near all-time lows — and fears that next […]

Credit score

Bad credit score? How a “credit builder loan” or “secured credit card” can help you

Dubai: If you don’t have a credit history, it’s nearly impossible to get a loan, credit card, or even a house. But let’s say you have bad credit, what do you do then? To build your credit score from scratch, you need to prove that you can repay your dues responsibly, but for that you […]

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 […]

Credit score

How I Boosted My Credit Score by 84 Points in One Month by Doing These Two Things

Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. It was good, but I wanted it to be excellent. Earlier this […]

Credit score

Lenders Use AI to Offer Low Credit Personal Loans to Borrowers

item New fintech lenders are using AI to expand access to credit and provide personal loans to borrowers with low credit scores. (iStock) Fintech lenders are taking an unprecedented step by using artificial intelligence (AI) to offer personal loans to consumers with low or even no credit scores. In fact, a fintech startup lending platform […]

Credit score

Lenders are using AI to offer low-credit personal loans to borrowers

item New fintech lenders are using AI to expand access to credit and offer personal loans to low-credit borrowers. (Stock) Fintech lenders are taking an unprecedented step in using artificial intelligence (AI) to offer personal loans to consumers with low or no credit scores. In fact, a fintech startup lending platform called Upstart will soon […]

Credit cards

Learning about credit cards is an essential part of financial literacy | News

For many college students, college is their first time earning their own money and paying their own bills. Credit cards can be a positive tool for some, but can cause long-term damage to others. Several experts are looking into credit cards and financial literacy. Paul Rose is a psychology professor specializing in consumer psychology. He […]

Credit cards

Best credit cards with rewards of December 2021 | Personal finance

Flexible tips We’ve also researched credit cards that allow you to redeem rewards in multiple ways, or at the very least could be redeemed for statement credits to cover purchases. Keep in mind that there are also many excellent airline and hotel credit cards, which you should consider if you prefer to earn points 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 […]

Credit score

Where to get a personal loan with a credit score of 550

Our goal here at Credible Operations, Inc., NMLS number 1681276, referred to as “Credible” below, is to give you the tools and the confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are ours. You can get a personal loan […]

Credit cards

Debit Cards vs Credit Cards: Understanding the Differences Before You Shop

Paper or plastic? It’s a question you might hear in the grocery store line, but it could also be the one you ask yourself when paying for a purchase. Paper, of course, is cash, but when we talk about plastic, we are talking about debit or credit cards. Since not everyone knows the differences between […]

Credit cards

How Deferred Interest Credit Cards Can Cost You

Shoppers shop at a Best Buy store on Black Friday in San Carlos, California, U.S., Friday, Nov. 26, 2021. Bloomberg | Bloomberg | Getty Images Before you grab that great deal through a store’s special financing offer, make sure you know what you’re signing up for. About half of retailers offer deferred interest credit cards, […]

Credit score

No credit score? No problem! Just transmit more data.

The company is also a sort of regulatory guinea pig: Upstart was the first company to receive a non-action letter from the Consumer Financial Protection Bureau. The letter essentially stated that the office did not intend to take regulatory action against the company in exchange for detailed information about its loans and operations. While the […]

Credit score

How Do Buy Now, Pay Later Programs Affect Your Credit Score?

For information only. Image Credit: Agency Buy Now, Pay Later, or BNPL, is a payment plan that allows you as a buyer to split your total purchase at checkout into a series of smaller installments. While these plans aren’t new, they’ve recently catapulted themselves into the mainstream, with big retailers like Amazon now offering them. […]

Credit score

Here are Suze Orman’s top tips for boosting your credit score

Image source: Getty Images Could his advice give your credit score a much-needed boost? Key points Many companies use credit scores to gauge your trustworthiness and dependability. Raising your credit score could open doors for you and help you achieve your goals more easily. You can improve your credit score by following the advice of […]

Credit score

Good credit score? Cities and States with the Best Credit Scores

Many businesses featured on Money advertise with us. The opinions are our own, but the compensation and extensive research determines where and how businesses can appear. Learn more about how we earn money. As credit ratings hit an all-time high this year, new Data from FICO shows that some regions of the country made outsized […]

Credit score

My credit rating is improving after bankruptcy — how do I get a mortgage?

Our goal at Credible Operations, Inc., NMLS Number 1681276, hereafter referred to as “Credible”, is to give you the tools and confidence you need to improve your finances. Although we promote the products of our partner lenders who pay us for our services, all opinions are our own. The Credible Money Coach helps a reader […]

Credit score

What is a good credit score?

Generally speaking, scores between 690 and 719 are considered good credit over the commonly used credit score range of 300 to 850. Scores above 720 are considered excellent, while scores between 630 and 689 are considered fair. Scores below 630 fall into the bad credit range. FICO, the best-known credit scoring system, and its competitor […]

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 […]

Credit score

3 Things Mortgage Lenders Look Beyond Your Credit Score

Image source: Getty Images It’s not just your credit that matters. When you apply for a mortgage, lenders want to be sure that you will pay back what you owe. They examine the details of your financial situation in order to assess this probability. Your credit score is obviously one of the most important factors […]

Credit score

How Much Does Bad Credit Really Cost You?

Photo: firecrackers (Shutterstock) Unfortunately, the difference between great and bad credit could cost you nearly $400,000 over your lifetime, according to a recent study. This effect is much less exaggerated between outstanding and fair credit ratings, but even then, interest payments could cost you tens of thousands of dollars. Here’s a closer look at how […]

Credit score

How’s the market? Improve your credit score to get better rates – The Ukiah Daily Journal

If you’re considering buying a house (or a car, or a business, or anything else that requires a loan), be aware that lenders will use your credit score to determine whether to grant the loan, how much to lend, and cost. of the loan. Because credit scores consider so many variables, they can predict with […]

Corporate bonds

A flatter yield curve is bad news for corporate bonds, says BofA

(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 […]

Credit score

This easy trick will improve your credit score and avoid late payments

FlamingoImages/Getty Images/iStockphoto Paying bills on time is one of the easiest ways to boost your credit score. Your credit payment history accounts for up to 35% of your FICO score, according to myFICO. Keeping track of due dates is one way to reduce late fees. Splitting your bills into semi-monthly payments also helps you avoid […]

Credit score

How to check your credit score for free with CreditWise

Editorial independence We want to help you make more informed decisions. Certain links on this page – clearly marked – may direct you to a partner website and allow us to earn a referral commission. For more information, see How we make money. When it comes to your credit score, staying current is crucial. This […]

Credit score

Behaviors that can hurt your credit score | Lifestyles

Credit plays a vital role in helping people achieve their personal and financial goals. A good credit score can help people qualify for favorable home loan terms, paving the way for them to move into their dream home. A strong credit history can also help consumers earn benefits, and young people who learn how to […]

Credit score

How Personal Loans Can Impact Your Credit Score

Select’s editorial team works independently to review financial products and write articles that we think our readers will find useful. We may receive a commission when you click on links to our affiliate partners’ products. When it comes to paying for some of life’s biggest expenses – a home improvement, a big medical bill, an […]

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 […]

Credit score

A good credit score: what is it and what does it mean? | Opinion

I am often asked what a good credit score is. Having a good score is important, but managing your finances, setting goals, and living within your means are just as important. There is no absolute standard that creditors use to approve or deny credit. However, credit score is used by creditors to determine your ability […]

Credit score

Does your credit score need a boost? 3 expert-recommended tips to improve yours

article Having good credit has many advantages. Here’s how to boost your score. (Stock) Making sure your credit score is in tip top shape is an important factor if you’re looking to make a major credit purchase like a home loan, auto loan, or even a personal loan. Having a higher credit rating increases your […]

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. […]

Credit score

What is a credit score? What are credit score brackets?

Credit scores influence many aspects of your life: whether you get a loan or a credit card, what interest rate you pay, sometimes whether you get an apartment you want. A higher credit score can give you access to more credit products — and lower interest rates. Borrowers with scores above 750 or so often […]

Credit score

Why did my credit rating just drop? 6 common reasons

Your three-digit credit score can mean the difference between being approved for a new financial product with solid terms and being stuck with sky-high interest rates — or worse, turned down outright. It can therefore be extremely frustrating to think that you are doing well financially, only to find that your score has dropped. Credit […]

Credit score

What is a credit score?

A credit score is a three-digit number used by lenders to assess your creditworthiness. Credit scores let lenders and creditors know how risky you are as a borrower, indicating your ability to pay your bills on time. This number guides their lending decisions on credit limits, loan terms, and interest rates. How do credit scores […]

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

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

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

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 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

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

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

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

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 […]