Tue, Jun. 23, 7:49 AM
- Thanks to Greece, there's been just €2.3B of new European corporate bond issuance over the past two week, says SocGen, a continuation of the lowest volumes since 2011. Prior to the bubbling up of Greek worry, European corporate bond issuance was €48B in the month ended in mid-March - the fastest pace for any four-week period since January 2009.
- The team at SocGen has "lost count" of the number of announcements for new bonds in recent weeks, and expects "a flood" of issuance once the Greek dam is removed.
- ETFs: GDO, GHYG, PICB, IBND, CRDT, SUBD
Mon, Feb. 2, 3:22 PM
- In the wake of ECB's QE launch, more than €1B moved into European high-yield bond funds for the week ended Jan. 28. It's the largest weekly amount since JPMorgan began tracking the numbers in 2011 and stands against median inflows of €95M over the past four years.
- European high-yield bonds have an average yield of 4.2%, according to Markit, compared with 1.2% for investment-grade paper.
- “The global search for yield should prompt some investors to move down the credit quality spectrum into the noninvestment-grade market,” says one portfolio manager, summing up the conventional wisdom.
- ETFs: IHY, GHYG, PGHY, HYXU, PICB, IBND, CRDT, IJNK, SUBD
May 11, 2014, 5:47 AM
- Delek Drilling (DKDRF) and Avner Oil (AVOGF) have raised $2B in international bonds that the companies will use to finance the development of the massive Leviathan natural-gas field off the coast of Israel.
- The offering attracted demand of $13.5B and was over-subscribed by 650%.
- Avner and Delek Drilling, which are subsidiaries of Delek Group (DGRLY), hold a combined 45.34% in Leviathon, while Noble Energy (NBL) owns a stake of 39.66% and is the field's operator. Ratio Oil (RTEXF) holds the remaining 15%; Australia's Woodside Petroleum (WOPEF) has agreed to buy 30% from the partners.
- ETFs: GHYG, IBND, PICB, CEMB, GLCB
Mar. 3, 2014, 4:32 PM
- Eyeing better growth and sustained low interest rates, Moody's projects the global default rate to drop to 2.2% this year or 61 companies globally, from 2.9% or 66 companies in 2012.
- "Additional factors that support our view of a low default rate in 2014 are the continuous accommodative monetary environment together with ample liquidity, which has and will continue to allow distressed companies to access the capital market and reduce refinancing risk in the near future."
- For perspective, the average default rate since 1983 is 4.7%. It is indeed a golden age for corporate borrowers.
- Related ETFs: LQD, VCSH, VCIT, CORP, VCLT, CSJ, EMCB, CIU, CFT, EMCD, SCPB, LWC, GHYG, CLY, IBND, ITR, CEMB, PICB, QLTA, GLCB, IGHG, SLQD, PFIG, IGS, CBND, IGU, QLTB
Jun. 18, 2013, 1:22 PMPowerShares' Global Short Term High Yield Bond Portfolio (PGHY) is set to launch on June 20 with an expense ratio of 0.35%. Like the name says, the fund will keep duration low and invest globally. iShares' GHYG also invests globally in high yield, but with no mandate to keep holdings short-term. Several high yield funds have built-in hedges against higher rates, including HYHG, THHY, HYLS. | Jun. 18, 2013, 1:22 PM | Comment!
Apr. 12, 2013, 12:46 PMMore from Gundlach: Bond indexing has been a wonderful strategy for many years, but now the well-followed indexes (BND, AGG) have too short of a duration and are overloaded with Treasurys. The value is in non-traditional sectors like emerging markets (EMB), non-agency MBS, bank loans (BKLN), and global high yield (GHYG). | Apr. 12, 2013, 12:46 PM | 4 Comments
Feb. 6, 2013, 3:58 AMSoftbank (SFTBF.PK) reportedly intends to issue $3.2B worth of four-year bonds to help finance its acquisition of a 70% stake in Sprint (S) for $20.1B. "Softbank is well-known and popular among individuals," says analyst Mana Nakazora. "There isn’t concern about the bonds remaining unsold." | Feb. 6, 2013, 3:58 AM | Comment!
Feb. 5, 2013, 2:02 AMUBS (UBS) offers to buy back 5B francs ($5.5B) in senior debt after the massive downsizing of its investment bank cut its liquidity and funding requirements. While the move will "lower interest expense in the future," UBS says it could also bring "significant" Q1 own credit charges due to a possible tightening of its credit spreads. (Q4 earnings) (PR) | Feb. 5, 2013, 2:02 AM | Comment!
Jan. 31, 2013, 2:50 PMWisdomTree rolls out its Global Corporate Bond ETF (GLCB), an actively-managed ETF blending developed and emerging market corporate debt. There are global corporate bond funds, there are emerging corporate bond funds, but there are none combining the two and adding in active management. Competitors: GHYG, CEMB. | Jan. 31, 2013, 2:50 PM | Comment!
Jul. 24, 2012, 1:33 PMEuropean high-yield investors don't know from troubles there, ahead by 12% YTD with stocks in the tank, writes James Tomlins. He believes a world of microscopic rates, slow growth, and deleveraging has altered correlations, allowing high-yield to perform even as returns to shareholders lag. | Jul. 24, 2012, 1:33 PM | 2 Comments
Jun. 7, 2012, 2:36 PMWhen life deals you lemons ... banks (particularly European ones) cutting back lending activity in Asia is leading to a ramp in the development of the corporate bond market there. Companies (ex-Japan) issued $398B in bonds last year, up 29% Y/Y as syndicated bank loans dove 44%. | Jun. 7, 2012, 2:36 PM | Comment!
Apr. 5, 2012, 12:32 PMA new offering of ETFs offers high yield investors greater international - both developed and emerging - exposure. EMHY is designed to track the Morningstar Emerging High Yield Bond Index, the HYXU sticks to developed countries, and the GHYG adds international (developed) exposure to the popular HYG. (PR) | Apr. 5, 2012, 12:32 PM | 1 Comment
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