FlexShares Credit-Scored US Corporate Bond Index ETFNASDAQ
Tue, Nov. 1, 3:32 AM
- A surge of blockbuster takeovers and buyouts has provided renewed ammunition for the corporate bond market, supplying fresh kindling in what is already set to be a record year of debt issuance.
- The backlog of M&A that had yet to be financed slid to $246B at the end of September from more than $900B in late 2015, according to BofA Merrill Lynch, but that figure has climbed 87% to $460B following the recent string of deal announcements.
- ETFs: LQD, VCSH, VCIT, VCLT, CORP, CSJ, CIU, CSI, CRED, IGI, LWC, SCPB, CLY, ITR, BSCH, IGHG, QLTA, BSCG, BSCI, BSCK, BSCJ, IBCE, SLQD, LQDH, COBO, FCOR, IBCC, IBDC, CBND, BSCL, BSCO, IBDD, IBDF, IBDB, IBDH, LDRI, IBDQ, SKOR, BSCM, BSCN, BSCP, IBCD, IBDN, IGIH, BSCQ, IBDK, IBDM, CLYH, IBDJ, IBDL, IBDO, IBDP, IBDR, SFIG, WFIG
Thu, Oct. 20, 4:16 AM
- In a novel initiative, Sprint (NYSE:S) is set to issue $3.5B in five-year bonds that are backed by its wireless spectrum, which the telecom operator values at $16.4B.
- Investors seem to like the idea, with orders hitting $30B.
- The first-of-its-kind deal will allow Sprint to slash its borrowing costs. The paper is expected to yield 3.5% and the telecom provider plans to use the money to repay maturing debt. This could cut its financing costs and boost cash flows by an estimated $200M a year.
- The debt is receiving investment grade status from Fitch and Moody’s despite Sprint itself being rated as junk.
- ETFs: LQD, VCIT, CORP, CIU, CSI, CRED, ITR, QLTA, COBO, FCOR, CBND, SKOR, IGIH, WFIG
Mon, Mar. 21, 3:27 PM
- Updating its global asset allocation recommendations, Citi Private Bank moves IG corporate bonds to "very overweight" - the only asset class out of 21 receiving the honor of such a high rating.
- "With U.S. yields near 5% for long maturities, and half the historical average volatility of equities, the sector seems historically attractive as our asset allocation moves higher in capital structure and credit quality," writes Steven Wieting, global chief investment strategist.
- Alongside the boost in IG corporate debt, the team cut exposure to equities to neutral, raised cash to overweight, and boosted Latin American debt as well.
- ETFs: LQD, VCLT, VCIT, CORP, CIU, CSI, CRED, LWC, CLY, ITR, PICB, IBND, QLTA, COBO, FCOR, IGS, CBND, QLTB, IGU, SKOR
Sep. 10, 2015, 4:12 AM
- Companies raised $28B of investment-grade bonds in U.S. markets yesterday as the corporate-debt market roared back to life after a three-week hiatus that was partly due to worries about China.
- Nineteen companies issued debt, including Gilead Sciences (NASDAQ:GILD) with a $10B deal, home-improvement retailer Lowe’s Cos. (NYSE:LOW) and hotelier Marriott International (NASDAQ:MAR).
- Overall, firms have sold $1.2T worth of new debt in the U.S. this year, including junk-rated paper, putting the market on course to set a record for a fourth consecutive year.
- ETFs: LQD, VCSH, VCIT, VCLT, CORP, CSJ, CIU, CSI, CRED, LWC, CLY, SCPB, ITR, IGHG, QLTA, FCOR, IGS, COBO, SLQD, LQDH, QLTB, CBND, LDRI, IGU, SKOR
Jun. 4, 2015, 11:01 AM
- For all the talk of Russia's economic woes, the corporate debt of that country has far outperformed that of the U.S. this year. Noting that, Deutsche Bank strategists Oleg Melentyev and Daniel Sorid suggest the tide of the U.S. corporate debt boom could be turning.
- Helped by a flood of retail money into investment-grade bond funds, the size of the corporate debt market has risen to $7.8T from $5.4T in 2009, fueling a boom in buybacks and EPS in an otherwise middling economic environment.
- The result is more levered corporate balance sheets (even stripping out oil companies) just at the time when the Fed is getting set to hike interest rates.
- "As the Fed prepares the market for the end of the period of zero short-term rates, we may be approaching a reassessment of just how much leverage is appropriate given the overall market compensation," conclude the duo.
- Source: Bloomberg
- ETFs: LQD, VCIT, VCLT, CORP, CIU, CSI, CRED, LWC, CLY, ITR, IGHG, QLTA, FCOR, IGS, COBO, LQDH, QLTB, CBND, IGU, SKOR
Nov. 13, 2014, 11:59 AM
- The FlexShares Credit-Scored U.S. Corporate Bond Index Fund (NASDAQ:SKOR) will track an index of fixed income securities, focusing on intermediate maturity and selected using a proprietary credit evaluation process.
- Other U.S. investment grade corporate bond ETFs with intermediate maturity: VCIT, CIU, ITR, SKOR