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LQD

iShares iBoxx $ Investment Grade Corporate Bond ETF

5/23/2013, 3:58 AM ET

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Monday, May 20, 1:10 PM With borrowers racing to market before demand dries up or interest rates rise, corporate bond (LQD) sales this month are on pace for their busiest May ever, according to Bloomberg. The previous record of $162.6B was hit in 2008. Warnings from Buffett and Gross about the likelihood of higher rates are ignored as "investors have cash to spend yet fewer alternatives to buy," writes a Morgan Stanley team. Comment!
Saturday, May 18, 9:15 AM Leon Cooperman and partner Steve Einhorn keep it simple: Stocks (VTI) are cheap relative to interest rates and inflation. The guy who bought T-bills (SHY) has migrated to T-bonds (TLT), the guy who bought T-bonds has moved to investment grade corporates (LQD), the guy who bought IG is now in high-yield (HYG, JNK), and so on (glasses clink in the FOMC board room). Their largest position is Sprint Nextel (S) - as fans of Masayoshi Son and long-time owners of DISH, the duo like seeing two industry titans both wanting the same asset. New Citigroup (C) management should be able to double ROE over the next 2-3 years, and Transocean (RIG) sells for a significant discount to asset value. 4 Comments [Quick Ideas]
Thursday, May 16, 12:07 PM Bill Gross pokes some fun at himself, telling Bloomberg TV "We are not always right, but we are always certain." He reiterates his belief that the 30+ year secular bond bull market is over, but isn't expecting a 1994-like meltdown in Treasurys. He instead thinks Treasurys (TLT) and corporates - both investment-grade (LQD) and high-yield (HYG, JNK) - won't move much over the coming 12 months. 4 Comments [U.S. Economy]
Friday, May 10, 5:57 AM Don't panic, Moody's says, there's "no strong evidence that recent [corporate debt] issuance levels presage a damaging correction." The notion that a bubble is building in the corporate bond market isn't reflected in credit spreads which, for both investment grade (LQD) and high yield (HYG, JNK), are closer to long-run averages than they are to alarmingly tight. Furthermore, the ratings agency says a surge in issuance reflects the "disintermediation of the banking sector" and notes that the proportion of total corporate liabilities comprised of debt securities hasn't significantly increased over the past two years." We can all rest easy now. (previous) 2 Comments
Wednesday, May 8, 11:20 AM Coupons continue to shrink on fixed-rate U.S. corporate bonds reports Fitch, with the average falling to 5.6% in March, down from 5.7% at year end, and 6.1% a year ago. Investment-grade paper (LQD) came in at 3%, speculative (HYG, JNK) at 6.3%. New issuance in Q1 was $259.5B, putting 2013 on pace with 2012's record activity. Rating activity remains subdued, with downgrades affecting just 1% of issuance, upgrades 1.8%. Comment!
Wednesday, May 1, 2:54 PM iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) announces monthly distribution of $0.3621. 30-day SEC yield of 2.74% (as of 3/28/2013). For shareholders of record May 03. Payable May 07. Ex-div date May 01. Comment! [Dividends]
Friday, April 19, 10:45 AM It's the dreaded "impossible trinity." Commodities, stocks, and bonds are all giving conflicting signals on the global economy, says BAML's David Woo, and their resolution could be a source of a "major realignment" of prices. Commodities (DBC) signal slow down, stocks (VTI) price in strong consumer spending, and bonds have completely lost it - government paper (TLT) says run for the hills, while credit spreads (LQD, HYG, JNK) say things are rosy. 11 Comments
Friday, April 12, 12:28 PM Fixed-income may not be being given away as it was in 2010, but there's still value, says Jeff Gundlach, scoffing at talk of a bond bubble. "Raise your hand" if you own Treasurys for yourself or a client, he asked a room full of advisors (none went up). Bonds are not "over-owned" in the U.S., he says, showing cash and fixed income make up a higher percentage of household financial assets in other countries. 5 Comments [U.S. Economy]
Monday, April 1, 5:03 PM iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) announces monthly distribution of $0.368. 30-day SEC yield of 2.88% (as of 3/28/2013). For shareholders of record Apr. 03. Payable Apr. 05. Ex-div date Apr. 01. Comment! [Dividends]
Monday, March 18, 4:57 AM Ron Rowland offers additional highlights on the recently expanded lineup of commission-free ETFs over at Fidelity including the following caveat: Funds not held for 30 days by retail investors or 60 days by RIAs using Fidelity as a custodian will be subject to a $7.95 per-trade commission. Some RIAs have complained that the longer holding period directed at them is unfair. Rowland spells out the full list of affected ETFs here. Comment!
Friday, March 1, 10:15 AM iShares Investment Grade Corporate Bond ETF (LQD) announces monthly distribution of $0.374. 30-day SEC yield of 2.89%. For shareholders of record Mar. 05. Payable Mar. 07. Ex-div date Mar. 01. Comment! [Dividends]
Wednesday, February 27, 11:10 AM Leading off his latest outlook with Alan Greenspan's "irrational exuberance" line, Bill Gross (BOND) ponders its application to credit markets (LQD, HYG, JNK) today. Conclusion: Not yet. Labeling credit irrationality a 6 on a scale of 1-10, Gross suggests not selling, but instead lowering expectations.
1 Comment [U.S. Economy]
Tuesday, February 19, 11:24 AM Very bearish on credit (see earlier), Howard Marks tells Bloomberg TV he's more constructive on equities, calling stocks less-loved than bonds. He's not seeing much opportunity in his forte - distressed credit - as the expected deluge in cheap assets from Europe never materialized. Comment!
Thursday, February 14, 9:56 AM "I could see a very quick and violent - and tradable - upward move in rates," says Jim Grant, who is currently short the iShares IG Corporate Bond ETF (LQD). Not having an idea of when this might happen, Grant says there's plenty of "poetic signs and portents" that it will happen. 1 Comment [U.S. Economy]
Wednesday, February 13, 9:15 AM Corporate debt has duration risk as well, and worries over higher rates have BlackRock planning two actively-managed ETFs focused on short-term paper. Average duration of IG debt stands at a near-record 6.8 years, according to BAML. The long-end has been the place to be, but shorter-duration is "gaining traction." LQD -1.4% YTD. Comment! [U.S. Economy]
Tuesday, February 5, 2:49 PM Money for nothing. IBM plans a sale of $2B in floating-rate debt, with the 2-year paper maybe priced at Libor minus 2 basis points. The 5-year notes look to yield 47 bps more than 5-year Treasurys. Coca-Cola and P&G both issued debt paying less than the benchmark rate last year. 1 Comment [U.S. Economy]