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'Given the pipeline progress coupled with results from our detailed pipeline analysis,' Truist raised its rating on Bristol-Myers to buy.
'Given the pipeline progress coupled with results from our detailed pipeline analysis,' Truist raised its rating on Bristol-Myers to buy.
USD/CAD received support above 1.2000 and rebounded towards the resistance at 1.2080.
(Bloomberg) -- AT&T Inc. was once the poster child for firms willing to sacrifice their credit ratings for the sake of debt-fueled acquisitions. Now, the company is making its biggest push yet to cut debt and ditch its long-held status as the world’s largest borrower.The telecom giant will reduce net debt by $43 billion as a part of a plan to spin off its media operations in a deal with Discovery Inc., according to an investor presentation accompanying the announcement. If its gross debt of $190 billion declines by roughly the same amount, AT&T would drop behind Verizon Communications Inc. in the rankings of the most indebted non-financial companies globally, according to data compiled by Bloomberg.AT&T has been on a yearslong effort to tame a debt load that once swelled to about $200 billion, largely accumulated via its 2018 acquisition of Time Warner Inc. With the Discovery transaction, AT&T will reach its goal of reducing leverage to 2.5 times a year ahead of schedule, and possibly spare bondholders from any potential ratings action that would push it closer to speculative grade.“This is a big step forward to reaching that leverage goal,” said Bloomberg Intelligence analyst Stephen Flynn. “Debt reduction should be the No. 1 priority.”AT&T’s bonds were among the best performers in the U.S. investment-grade market Monday. The most actively-traded securities, the 3.5% bonds due 2053, tightened 11 basis points, the most since November, according to Trace. The annual cost to protect AT&T’s debt against default for five years dropped the most since February.AT&T has chipped away at its debt load and streamlined its business through a series of refinancings, exchange offers and asset sales in recent years. Yet it recently deviated from its debt diet when it pledged to spend up to $23 billion on spectrum to expand its 5G network, a move largely financed by bonds and loans.That drew a downgrade from Fitch Ratings and a negative outlook from S&P Global Ratings in March. Verizon, which borrowed $25 billion in the year’s largest bond sale to help fund its own spectrum purchases, saw its positive outlook changed to stable by Moody’s Investors Service.U.S.Square Inc. is looking to raise $2 billion from a debut junk-bond sale, one of the largest inaugural new issues of the year, according to data compiled by Bloomberg. Eight other deals kicked off marketing Monday.High-grade issuance is set to remain strong and steady this week, with $30 billion to $35 billion of fresh supply expected following a $42 billion week headlined by Amazon.com Inc.’s jumbo saleRally-weary U.S. junk bonds posted the biggest loss in two months last week. Still, investor demand remained robust, with more than $13 billion of deals pricedBank of America expects U.S. investment-grade corporate debt spreads to widen “in coming months” as Treasury yields push higherFor deal updates, click here for the New Issue MonitorFor more, click here for the Credit Daybook AmericasEuropePrimary market participants expect the SSA sector to maintain its dominance of weekly activity, according to a survey conducted by Bloomberg News on May 14. Public-sector borrowers have led sales for 16 out of 19 weeks this year, according to data compiled and analyzed by Bloomberg.Some 16 mandates hit screens, including an inaugural green bond from Air LiquideOther borrowers planning sales include engineering and technology company Technip Energies, which will hold investor calls on Monday and Tuesday ahead of an inaugural euro seven-year saleCovered bond supply is set to get a boost from Raiffeisen-Landesbank Steiermark and United Overseas Bank, while Spanish lender Cajamar is planning a Tier 2AsiaIndian dollar bonds have been rebounding in recent weeks on bargain hunting after the Covid-19 crisis left them among Asia’s worst performers at times last month.Spreads on investment-grade Asian dollar bonds narrowed 2-3 basis points on Monday, according to tradersThere was mix of investment-grade and high-yield bond deals in the primary market on Monday, including HSBC Holdings Plc and National Australia Bank Ltd.China Huarong Asset Management Co. has reached funding agreements with state-owned banks to ensure it can repay debt through at least the end of August, by which time the company aims to have completed its 2020 financial statements, people familiar with the matter saidMore stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
IPO Edge will host a fireside chat with Origin Materials, Inc. (“Origin” or “Origin Materials”) and Artius Acquisition Inc. (NASDAQ: AACQ, “Artius”) on Monday, May 24 at 2pm ET to discuss their pending merger. The live event will feature Origin Co-Founder and Co-CEO John Bissell and Co-CEO Rich Riley, as well as Artius CEO Boon Sim. IPO […]
(Bloomberg) -- GDS Holdings Ltd. is considering acquiring GLP Pte’s data centers business as the Chinese cloud computing company seeks to expand its digital infrastructure capacity in the world’s second-largest economy, according to people familiar with the matter.GDS, a developer and operator of high-performance data centers across China, is holding preliminary talks with Singapore investment manager GLP over a potential transaction that could value the assets at $8 billion to $10 billion, the people said, asking not to be identified because the deliberations are private. As part of the deal GLP would become a shareholder in Shanghai-based GDS, the people said.Considerations are at an early stage and the companies could decide against pursuing a transaction, the people said. Details including valuation and structure of a deal could change, they said. Representatives for GDS and GLP didn’t respond to phone calls, emails and text messages requesting comment.GDS’s American depositary shares jumped as much as 5.4% Tuesday. They were up 4.2% at 12:41 p.m. in New York, giving the company a market value of $14.8 billion and putting it on track to close at the highest level in more than two weeks.Booming Interest The prospective deal comes as digital infrastructure swells in importance to the global economy, with data centers supporting everything from the video streams that enable remote working to the online gaming and social media that fill our leisure time.Read More: Global Switch’s Chinese Owners Said to Mull $11 Billion SaleGDS, China’s largest independent data center operator by market value, raised $1.9 billion in a Hong Kong secondary listing last year, according to data compiled by Bloomberg. Chief Executive Officer William Huang said in a November Bloomberg Television interview that the company plans to use the proceeds primarily to invest in data centers in China, Hong Kong and possibly Southeast Asia. GDS might also look at M&A opportunities in China and beyond, Huang said.GLP has substantial data center holdings of its own in China. The company has been developing GLP Huailai Internet Data Centre in Hebei province, northern China, with a total investment of about 10 billion yuan ($1.6 billion), according to its website. The facility will offer more than 15,000 cabinets, which can hold about 200,000 servers, once the project is finished.Founded in 2009, the firm is a global investment manager in logistics, real estate, infrastructure and technology, the website shows. It operates in markets including China, the U.S., Brazil, Europe, India, Japan and Vietnam and counts more than $100 billion in assets under management.A sale of the data center assets would follow other blockbuster deals by GLP. In 2019, it sold its U.S. urban logistics properties to Blackstone Group Inc. in an $18.7 billion transaction.(Updates with New York trading in fourth paragraph.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Oxford Cannabinoid Technologies, which counts tobacco giant Imperial Brands Plc and rapper Snoop Dogg among its investors, is set to start trading Friday on the London Stock Exchange.The company, which develops cannabinoid-based prescription medicines, has raised 16.5 million pounds ($23 million) from wealthy individuals and institutional investors in a placing, giving it a market value of about 51.5 million pounds, Chairman Neil Mahapatra said in an interview.Oxford Cannabinoid, known as OCT, is hoping to replicate the success of GW Pharmaceuticals Plc, a British company that made the first drug wholly derived from the cannabis plant to win U.S. FDA approval. It was acquired by Jazz Pharmaceuticals Plc for $7.2 billion this year.Being a pharmaceutical company, OCT could have listed before the U.K. market regulator gave the green light for medical pot listings on the LSE in September, but the approval eased its path to market, Mahapatra said. A number of medical marijuana companies have listed in the U.K. this year like consumer-products firm Cellular Goods Plc, which also has a celebrity backer in soccer star David Beckham.But OCT, which has a research partnership with Oxford University, is looking to set itself apart from recent issuers by stressing its pharma roots. The company plans to use IPO proceeds to develop a portfolio of four drug candidates for approval as licensed pain medicines, with the first commercial sales expected in 2027.Kingsley Capital Partners, a London-based private equity firm where Mahapatra is a managing partner, will hold nearly 21% of OCT’s share capital upon admission, according to the IPO prospectus. Imperial Brands will have about 11%, while Casa Verde Capital LLC -- the California-based venture firm where Snoop Dogg is a partner -- will have about 2%.The pain market targeted by the company is estimated to be worth more than 42 billion pounds globally, with the unfolding opioid crisis in the U.S. putting the focus on medication that can help people manage pain without adverse side effects, Mahapatra said. “A cannabinoid overdose could lead to a headache at most, making the substance a far safer alternative to opioid painkillers.”OCT’s listing is being arranged by States Bridge Capital, which was set up by a group of City bankers including David Hitchcock, who used to be chairman of Grant Thornton’s U.K. banking and securities group, and Jamie Moyes, who helped set up investment bank Liberum Capital.(Adds details on the company’s target market and shareholdings in paragraphs five to seven.)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The Federal Reserve may be fretting over the speculative euphoria in crypto, SPACs and meme stocks, but plenty on Wall Street see bubble risks growing across all the systemically important assets.Everything from European bonds and U.S. Treasuries to high-yield credit and tech stocks is trading near the highest valuations in decades -- even as the inflation bogeyman risks breaking out at long last.Market participants from Goldman Sachs Group Inc. to BlackRock Inc. are divided on whether all this constitutes an unsustainable frenzy. To Dan Fuss, the legendary 87-year-old vice chairman at Loomis Sayles & Co. LP, it certainly looks that way thanks to unprecedented liquidity that is now set to tighten on good economic news.Meanwhile, Kathy Jones of Charles Schwab & Co. is telling clients to beware the “nuttiness” in junk debt. And JPMorgan Asset Management’s Bob Michele is calling on Fed officials to discuss tapering asset purchases soon enough, before market bubbles form.Others are more sanguine -- betting that the economic reopening and the re-leveraging cycle will pave the way for more cross-asset gains.Interviews have been edited for clarity.Dan Fuss, vice chairman, Loomis Sayles“We are in ‘bubble’ territory. It is primarily a liquidity bubble, combined with the resulting valuation distortion. Stocks with high P/Es, marginal credit bonds, and pooled vehicles are the most vulnerable. In the 1960s and 1970s, I was lucky enough to spot the small stock valuation bubble and the growth stock bubble. The similarity between then and now was valuation. This one is a liquidity bubble that is unique in my experience.The markets are awash in liquidity caused by the central bank supporting the Treasury’s needs in fighting the Covid war. It is slightly analogous to the formal accord of the late 1930s to mid 1950s between the Fed and the Treasury. It is different in that it caused layers of increased liquidity as various market participants can borrow shorter term money cheaply.When prices decline somewhat, there can be, as there was last March, a magnified drop in the liquidity, causing more sales. This can destabilize the broader market.”Kathy Jones, chief fixed-income strategist, Charles Schwab“We are warning people about not overdoing it. We are saying it’s OK to hold high yield but to try not to hold a concentrated position at the low end and realize this can change pretty fast. This is when diversification really helps you, when things are a little nutty like this, and you don’t know when the nuttiness will end.When I look at CCC’s rallying so hard -- even if the default rates are at the low end of historical average -- your chances of making money over the long run aren’t great. You’d be lucky to break even.”Bob Michele, CIO, JPMorgan Asset Management“My biggest concern is that the Fed waits too long to start the normalization process. Their view is that there is a reopening surge that creates a short term spike in inflation, but it will be transitory. If they’re wrong, that’s when things could become painful.The economy and markets would binge on the prolonged period of cheap money and the risk of bubbles would be far greater. They would be forced to take away the proverbial ‘punch bowl’ by tightening monetary policy more aggressively than the markets expect.I don’t want to be involved in that experiment of owning negative real yields and hoping the Fed can manage an unusually complex normalization process by letting the economy and inflation run hot for a period of time! Consequently, we’re using rallies to sell duration.”“I’m inviting the Fed to start the normalization process now. They should start the conversation on tapering QE no later than the August Jackson Hole meetings. I never thought in my career I would be asking the Fed to begin withdrawing liquidity from the system. But I’m asking because growth and inflationary pressures are just too high.They should start actual tapering no later than January 2022 and then start raising rates no later than mid 2023. There is no reason for them to be running the same level of accommodation as a year ago.”Elga Bartsch, head of macro research, BlackRock Inc.“Markets are not in bubble territory, but they are in unusual terrain given that we are in an economic restart, not a regular business-cycle recovery. For the Fed to move faster than indicated by market pricing, it would essentially need to abandon its new policy framework, which it adopted only last August.We deem this unlikely and see a later lift-off for rates than the market. One pre-condition for the emergence of bubbles is the build-up of financial imbalances. Prior to Covid-19 there was little indication of such imbalances. Since then private sector balance sheets have become stronger, not weaker.”Read more: Fund That Made 929% on Equities Crash Targets Big Short in BondsVineer Bhansali, founder, LongTail Alpha“Bonds are in a massive bubble that we’ve never seen the likes of and inflation, which is the biggest risk to bonds, is coming back. My biggest worry right now is if there’s suddenly a sharp rise in yields, especially in Europe and Japan.I’m massively short the bond market. A big rise in rates can upend everything. If the thing you are counting on to protect you is not protecting you and it’s hurting you, you are going to have to start liquidating -- your Bitcoin, your equities and more. There will be collateral damage.Everybody is counting on the Fed to keep stepping in and buying bonds. At some point the Tsunami may just wash them and they have to say we just can’t buy any more. That to me is the biggest danger.”Peter Oppenheimer, chief global equity strategist, Goldman Sachs“There are pockets of over optimism and excessive valuations in equities. But the key thing is whether this is broad enough in its manifestation to become systemically risky. I would say that there isn’t really a strong evidence of that yet. We may have high multiples, but they are not that high when you consider where interest rates are.We don’t have huge leverage in the private sector. We found that private sector leverage is a very common driver of financial bubbles. Households have very strong savings and they don’t have high levels of leverage. That’s true for banks as well. We expect global growth to accelerate strongly and in a synchronized way. We are overweight stocks and commodities and underweight bonds.”More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
AT&T's stock is the biggest loser in the S&P 500 on Tuesday. Its valuation depends on how much credit investors give the combined WarnerMedia/Discovery for its future streaming efforts.
‘Will she still be able to use our daughter as a tax deduction? My concern is also with the coming child tax credit this summer.’
A paper that my colleague Anqi Chen and I wrote last year — “How Much Taxes Will Retirees Owe on Their Retirement Income?” — keeps hitting the “top 10” list on a major listserv for social sciences research. As people approach retirement, they tend to add up their financial resources — Social Security benefits, defined benefit pensions, defined contribution balances, and other assets. The question we look at is just how large the tax burden is for the typical retired household and for households at different income levels.
The Biden administration has announced payments will be starting this week.
Learn the basic structure of a 401(k) and why it may not be enough to sustain you during retirement.
Amid the slump sweeping across crypto assets Tuesday, investors were turning their attention to a meme asset, SafeMoon, that has garnered increased attention was recently drawing fresh looks after comments made by Barstool Sports founder Dave Portnoy on Twitter.
Raoul Pal tells bitcoin investors that current volatility is to be expected, but big things are around the corner.
Experienced hands look to be buying the dip as a key bitcoin price indicator suggests the pullback may be coming to an end.
GameStop and AMC overcame rocky starts to the trading day as comments on social media surged and retail traders mused once again about “squeeze"s on both stocks.
‘Everybody wants to have asset prices forever going up and the cost of financing to be next to nothing,' Kerry Killinger says.
What does a weekend meltdown in bitcoin prices portend for U.S. stocks? Bitcoin (BTCUSD) is supposed to be an asset that isn’t highly correlated with equity markets, or any other traditional asset for that matter, but some analysts have pointed out that the cryptocurrency has traded in closer step with parts of the market amid the recent turbulence in equities as investors attempt to assess the most effective strategies for playing an economy recovering from the worst pandemic in more than a century. In a blog post on Sunday, Mott Capital’s Michael Kramer said that bitcoin’s recent breakdown could signal that risk appetite on Wall Street is in transition — presumably in a bearish direction.
Dividend stocks are always popular. They offer investors a clear path to returns, with regular cash payments and a yield – a return on the original investment – that usually far exceeds bond yields. But not all dividend stocks are created equal, and some offer better opportunities than others. Dividend yield is a key metric. Among S&P listed companies the average yield is only 2%. However, the highest yields aren’t always the way to go. Investors should also consider share appreciation or upside potential – these factors aren’t always connected to dividends, but they will affect the general returns available from a given stock. To that end, we’ve used the TipRanks database to pull up two high-yield dividend stocks that share a profile: a Buy-rating from the Street’s analyst corps; considerable upside potential; and a dividend yielding over 8%. Let’s take a closer look. New York Mortgage Trust (NYMT) We’ll start with a real estate investment trust (REIT), a logical place to turn for high dividend returns. REITs typically pay out higher than average dividends, as a way of complying with profit-return regulations in the tax code. New York Mortgage Trust, which holds a portfolio of adjustable-rate residential mortgage loans, commercial mortgages, and non-agency mortgage-backed securities, is typical of its niche, both in the quality of its portfolio and its high yield dividend. In its recent 1Q21 financial release, NYMT listed several metrics of interest to investors. The company sold off non-agency RMBS and CMBS totaling $111.6 million, purchased $347.3 million in residential loans, and finished the quarter with $4.72 billion in total assets. The company saw net investment income of $30.3 million, and was able to fund its dividend payment, to the tune of 10 cents per common share. At that payment rate, the dividend yields 8.91%. This was the second dividend declaration in a row at 10 cents; the company has been gradually increasing the payment since cutting it back last summer during the worst of the corona crisis. B. Riley analyst Matt Howlett was impressed by NYMT’s management of the recent economic crisis, and that factor takes a lead role in his recent initiation report. “Over the last decade, NYMT has delivered among the highest economic return within the space due in part to strong asset selection, low leverage, and a highly efficient operating structure. While the March 2020 liquidity crisis was a setback for the industry, NYMT managed the crisis admirably, in our view, and avoided any major wear and tear on the company. In fact, we argue that as NYMT has rebuilt, its originations have become more direct (acquiring loans vs. securities), and its cost of capital has been declining,” Howlett opined. In line with these comments, Howlett rates the stock a Buy, and his $6 price target implies a one-year upside potential of 36%. Based on the current dividend yield and the expected price appreciation, the stock has ~45% potential total return profile. (To watch Howlett’s track record, click here) Overall, there are four recent reviews on record for NYMT, and they break down to 2 Buys, 1 Hold, and 1 Sell for a Moderate Buy consensus rating. The shares are selling for $4.45, and the average price target of $5.17 suggests room for ~17% upside from that level. (See NYMT stock analysis on TipRanks) Global Net Lease (GNL) Next up, Global Net Lease, is another REIT. The portfolio here is built on commercial real estate properties. A review of the company’s portfolio shows 306 such properties, totaling 37.2 million square feet of leasable space, let to 130 tenants. GNL operates in 10 countries, and boasts that 99.7% of its total square footage has been leased. The average lease has 8.3 years remaining – an important factor, as the long term provides stability to the portfolio. In the first quarter of 2021, GNL showed a top line of $89.4 million, up 12.8% from the year-ago quarter. The company ran a net loss, but at $800,000 that loss was significantly smaller than the $5 million lost in 1Q20. Net operating income was up from $71.9 million one year ago to $81.8 million in 1Q21. GNL reported sound liquidity in the quarter, with $262.9 million in cash or cash equivalents and an additional $88.6 million available in credit. And most importantly, GNL reported collecting 100% of rents due in Q1. GNL declared a 40 cent dividend for common shareholders during the quarter, and through it distributed a total of $36.2 million. At that rate, the dividend annualizes to $1.60 and gives a high yield of 8.59%. The dividend was cut last year during the corona crisis, but has been kept stable for five quarters since then. All of this adds up to a company that is sound on fundamentals of its business, and that has attracted notice from analyst Bryan Maher. In his note for B. Riley, Maher writes, “GNL's strong portfolio metrics provide for an attractive setup for the balance of 2021…. Given that GNL, in our view, is not over-levered and can borrow at exceedingly low rates, combined with prudent use of its in-place ATM, we are not concerned about the REIT's ability to finance acquisitions to hit our $300.0M target for 2021.” The analyst summed up, "Given GNL's well-crafted industrial/ office net lease portfolio and strong operating metrics, we reiterate our Buy rating on the shares." The Buy rating comes with a $23 price target attached. At current share price, that implies an upside of ~25% for the next 12 months. (To watch Maher’s track record, click here) Some stocks fly under the radar, and GNL is one of those. Maher's is the only recent analyst review of this company. (See GNL stock analysis on TipRanks) To find good ideas for dividend stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The legislation would outlaw penalizing taxpayers until the IRS clarifies its policies.
The payments will reach more than 65 million children, according to senior administration officials.