Pioneer High Income Trust
 (PHT)

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  • Tue, Feb. 2, 2:28 PM
    | Tue, Feb. 2, 2:28 PM | 9 Comments
  • Mon, Feb. 1, 2:26 PM
    • U.S. junk bond defaults should hit 4.4% this year, says Moody's - up from 3.2% in Q4 and the highest level since 2010.
    • It's all about commodities/energy, with 9 of 15 non-financial defaults in Q4 from oil and gas companies.
    • Non-commodity defaults in 2015 were 24, up just three from 2014's level. While just edging higher, liquidity pressures in these sectors are on the rise, says Moody's, suggesting the possibility of an even sharper rise in broader defaults should economic growth slow, or credit pressures stemming from energy rise.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Mon, Feb. 1, 2:26 PM | 7 Comments
  • Fri, Jan. 15, 3:18 PM
    • The BAML High Yield Energy Bond Index yesterday closed at a yield to worst of 17.43% (and it's surely headed higher today). That level is the worst since the bank began putting the index together 20 years ago, according to Marty Fridson.
    • The prior record was 17.05% posted during the gloomiest times of the financial crisis, but as Fridson points out, energy high yield then was trading in line with everything else. Today, energy is an outlier.
    • On a day when the 10-year yield is lower by six basis points to 2.03%, HYG and JNK are down 1.5%.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Fri, Jan. 15, 3:18 PM | 8 Comments
  • Fri, Jan. 15, 8:50 AM
    • Losses are deepening in the market for low-rated energy debt, as investors worry that the prolonged slump in commodity prices and slowing economic growth will push many companies into default, WSJ reports.
    • Bonds among the biggest losers yesterday were from WPX Energy (NYSE:WPX) and Oasis Petroleum (NYSE:OAS), each down ~12% from the previous day, according to the report; a 2019 bond from OAS traded at $0.53 cents on the dollar, and a WPX bond maturing in 2023 traded at $0.655.
    • The losses come after many investors already have exited some larger oil and gas producers in the junk market; for example, a 2023 bond from Chesapeake Energy (NYSE:CHK) is trading at $0.285, roughly the same as in mid-December.
    • Energy sector junk bond losses already are near 4% YTD, and the spread vs. U.S. Treasurys hit 14 percentage points on Wednesday, the highest since December 2008, according to Barclays.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Fri, Jan. 15, 8:50 AM | 17 Comments
  • Wed, Jan. 13, 3:57 PM
    • Following the collapse of the Third Avenue Focused Credit Fund (MUTF:TFCVX) last month, the SEC has launched a review of the entire junk-bond fund complex, reports Reuters.
    • The agency "sent detailed requests" to mutual fund and ETF managers following the Third Avenue liquidation plan in which investors could wait a year or more to get their money.
    • High yield's having a particularly ugly day today as equity markets wash out. HYG -1.2% and JNK -1.4% on a day when the 10-year Treasury yield is lower by four basis points to 2.06%.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Wed, Jan. 13, 3:57 PM | 15 Comments
  • Dec. 23, 2015, 3:56 AM
    | Dec. 23, 2015, 3:56 AM | 13 Comments
  • Dec. 16, 2015, 1:53 PM
    • “The headlines are awful, people are scared, and that’s what makes buying opportunities,” says Loomis Sayles Bond Fund (MUTF:LSBRX) manager Dan Fuss.
    • He compares the current rout to 2000, 2004, and 2008 when junk bonds were at screaming relative buys compared to other fixed-income assets.
    • The current shake-up is a "funds-flow phenomenon" that's being exacerbated by year-end tax-loss selling, he says, "handing us on a platter some wonderful opportunities."
    • 'I don’t know where the bottom is ... but I do know when the bonds are on sale … and that quite frankly is the only time when you can get some really reasonable value.”
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 16, 2015, 1:53 PM | 11 Comments
  • Dec. 16, 2015, 9:36 AM
    • The Fed's expected rate hike today comes at an "awkward time," says Goldman's Charles Himmelberg, as high-yield spreads are at levels which have historically been consistent with recessions.
    • This isn't your daddy's spread widening, though, says Goldman, as the transmission mechanism between high-yield weakness and the larger economy isn' what it used to be - largely the result of Fed policy which is keeping absolute yields under wraps.
    • Even if rates were to rise faster than anticipated, low long-term rates are locked in and a fast pace of recent refinancing means debt maturities over the next few years are unusually low.
    • The pain, says Goldman, will largely be contained to energy and materials.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 16, 2015, 9:36 AM | 14 Comments
  • Dec. 15, 2015, 1:08 PM
    • Peter Acciavatti and team expect returns of 5-6% next year - which implies some price decline as this is below coupon levels.
    • They see spreads tightening 35 basis points to 650 bps by year-end, but this will be outweighed by rising Treasury yields - 80 basis points on the 5-year, they expect.
    • "Investors must contend with not only rising default rates, but also an abundance of concerns ranging from trading liquidity to the Fed and oil price uncertainty. Therefore higher than normal risk premiums are justified and are likely to remain in place."
    • Overweights: Broadcasting, cable/satellite, gaming, healthcare, wireline telecom. Underweights: Diversified media, oilfield services, aerospace & defense, manufacturing, metals & mining, services, technology, wireless, utilities.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 15, 2015, 1:08 PM | 6 Comments
  • Dec. 15, 2015, 3:13 AM
    • Analysts are all weighing in on the rocky high-yield bond market, with some saying it "marks the start of a new trend" or could lead to a "contagion effect" of defaults, while others maintain its "overdone" and "illiquidity" could clear up soon.
    • How did it all start? The junk bond bear has been growling since mid-2014, but the real panic started last week when investment firm Third Avenue Management froze investor withdrawals from its nearly $1B high-yield bond fund and subsequently fired its CEO. The high-yield sector is also heavily tied to crude prices, which plunged below $35/bbl yesterday.
    • Uncertainty ahead of the FOMC's policy decision on Wednesday is further weighing on sentiment.
    • Previously: Asset managers punished in high-yield selloff (Dec. 14 2015)
    • Previously: Selling continues in high-yield (Dec. 14 2015)
    • Previously: Junk bonds get junkier (Dec. 14 2015)
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 15, 2015, 3:13 AM | 5 Comments
  • Dec. 14, 2015, 10:52 AM
    • A high-yield credit fund begun in 2009, London-based Lucidus Capital Partners has liquidated its entire portfolio, reports Bloomberg, and plans to return $900M to investors next month.
    • The company began to wind down its holdings in October, says Bloomberg, after getting a redemption notice from a "significant" investor.
    • This follows last week's news of Third Value Management blocking redemptions from its junk fund while it liquidates holdings, and Friday's similar move by Stone Lion Capital.
    • HYG -0.95%, JNK -0.7%
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 14, 2015, 10:52 AM | 17 Comments
  • Dec. 14, 2015, 8:54 AM
    • There's no early bounce from last week's high-yield carnage, with the iShares High Yield Corporate Bond ETF (NYSEARCA:HYGlower by 0.6% premarket, and the SPDR Barclays High Yield Bond ETF (NYSEARCA:JNKdown a full 1.1%.
    • Not helping is energy, with both oil and natural gas taking out new multi-year lows.
    • In mutual funds, Third Avenue Management fired its CEO after the collapse last week of its junk bond fund.
    • Looking for other signs of capitulation, HYG posted trading volume of $4.3B on Friday - not only its most ever by a mile, but more than three times the amount any corporate bond ETF has ever traded in a single day. For perspective, Apple's volume on Friday was $5.3B. This wasn't some big player exiting, but instead thousands of smaller orders - Bloomberg notes only a handful of trades for over $10M.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 14, 2015, 8:54 AM | 9 Comments
  • Dec. 14, 2015, 4:41 AM
    | Dec. 14, 2015, 4:41 AM | 2 Comments
  • Dec. 11, 2015, 10:56 AM
    • It's got to be bad when Marty Whitman throws in the towel. A junk bond fund (MUTF:TFCVX) managed by Whitman's Third Avenue Management yesterday moved to block investors from pulling out their money in order to give the fund room to orderly liquidate its holdings.
    • Third Avenue Management as a whole has been on a rough run, with its flagship Third Avenue Value Fund (MUTF:TVFVX) - run by Whitman from 1990 through 2012 - off 7.5% LTM, and now with just a one-star rating by Morningstar.
    • Among the reasons for the junk fund's troubles, say traders, was its policy of allowing daily withdrawals, even as it stuck with illiquid investments. With losses growing, traders at rival firms shorted Third Avenue's holdings on expectation of the need for forced selling.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 11, 2015, 10:56 AM | 17 Comments
  • Dec. 4, 2015, 8:25 AM
    • "Credit hasn’t looked this good in six years, and high-yield looks especially attractive," says Pimco CIO for Global Credit Mark Kiesel, as junk bonds head for their first annual loss since 2008.
    • The bull case: The economy is on a strong footing, junk bonds are yielding the most since 2011, and - outside of commodities - the default rate is still half its historical average.
    • "The Fed lifting off will be less of a market event than people think," says Kiesel. "This economic expansion can continue even though the Fed is raising rates."
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 4, 2015, 8:25 AM | 6 Comments
  • Dec. 2, 2015, 3:50 PM
    • That commodity-related junk issuance may be a problem isn't really news, but Moody's reminds the worst may be ahead as many issuers were temporarily cushioned by soon-to-end hedging programs and fixed-price contracts. Others, says Moody's, had cash balances which are making their way toward zero.
    • "Diminishing liquidity and restricted access to capital markets are now pushing more firms closer to default.”
    • Companies in the oil/gas and mining/metals sectors have issued nearly $2T globally since 2010, says Moody's, with much of that in the high-yield category. These sectors accounted for just 14% of Moody's nonfinance corporate ratings, but 36% of downgrades this year, and 48% of defaults.
    • ETFs: HYG, JNK, HIX, HYLD, DHY, PHT, EAD, HYT, JQC, CIK, DSU, HHY, SJB, NHS, PHF, ACP, FHY, ARDC, MCI, VLT, KIO, CIF, AIF, MHY, ANGL, PCF, DHG, MPV, IVH, HYLS, JSD, UJB, CJNK, GGM, QLTC
    | Dec. 2, 2015, 3:50 PM | 5 Comments
Company Description
At least 80% of its assets are invested in below investment grade debt securities, loans and preferred stocks. These securities are rated Ba/BB or lower or are unrated. Junk bonds are generally considered speculative. The investment objective is a high lev