Dogecoin was worth as much as $55 billion on Friday, nearly tripling on the day. At current levels, it’s worth about as much as Ford and Marriott.
(Bloomberg) -- To get a sense of just how quickly corporate America has bounced back from the pandemic, consider this: for the first time since January 2020, U.S. bankruptcy courts saw no large Chapter 11 bankruptcy filings last week.The halt in filings by companies with at least $50 million of liabilities comes as re-openings and vaccinations pick up steam. Bankruptcies and restructuring in the lodging sector and others related to leisure and travel should continue to decline as vaccines roll out globally, Ronen Bojmel, head of restructuring at Guggenheim Securities, said in an interview.“People are going to want to go out, they will want to spend and travel, and the market will demonstrate significant strength for a period of time,” Bojmel said. But it’s “extremely volatile” and “could change direction pretty quickly.”Just 56 large firms have sought bankruptcy court protection in the U.S. as of May 17, well below last year’s tally of 87 during the same time. Still, the pace of bankruptcy filings is above the 10-year average of about 52 cases as of that date, data shows.“There’s no distress in the economy right now -- it’s pretty amazing,” said Chris Ward, a bankruptcy lawyer with Polsinelli PC. “Retail is coming back. Bars and restaurants are opening. There’s definitely optimism in the economy.”Despite the lack of new filings, last week was busy for companies already in bankruptcy court. Hertz Global Holdings picked Knighthead Capital Management and Certares Management to buy the car renter out of bankruptcy. Brazos Electric Power Cooperative secured a $350 million bankruptcy loan from JPMorgan Chase & Co. Energy company Seadrill Partners also won approval of its plan to slash $2.8 billion of debt, while the National Rifle Association lost its Chapter 11 protection after it was tossed out of bankruptcy court.Meanwhile, the total amount of traded distressed bonds and loans is less active, falling again to about $79 billion as of May 14, data compiled by Bloomberg show. There were 209 distressed bonds from 120 issuers trading as of Monday, up from 200 and up from 119, respectively, one week earlier, according to Trace data.Click here for a worksheet of distressed bonds and loansBusinesses most impacted by the pandemic stand to gain from the slow down in Covid-19 infections seen in recent weeks. The amount of traded distressed bonds rose 1.3% week-on-week, while distressed loans fell 13.2%Despite the lack of troubled issuers on a week-by-week basis, industries including retail, real estate, and hospitality can still offer deals for bargain hunters willing to take on uncertainty, Howard Marks, co-founder of Oaktree Capital Management, said last week during a virtual finance panel hosted by the Committee of 100.Diamond Sports Group LLC had the most distressed debt of issuers that hadn’t filed for bankruptcy as of May 14, Bloomberg data show. Its parent company, Sinclair Broadcast Group Inc., said in a March filing that it expects Diamond to have enough cash for the next 12 months if the pandemic doesn’t get worse.Click here for more news on distressed debt and bankruptcy. First Word is curated by Bloomberg editors to give you actionable news from Bloomberg and select sources, including Dow Jones and Twitter. First Word can be customized to your Worksheet, sectors, geography or other criteria by clicking into Actions on the toolbar or hitting the HELP key for assistance.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) -- iFast Corp., an online brokerage that’s been Singapore’s best-performing stock over the past year, is betting on China and a retail-trading frenzy to help it grow assets by more than fivefold by 2028.Although the firm’s Chinese operations are loss-making, Chief Executive Officer Lim Chung Chun said the nation is poised to become the wealth-management platform’s fastest-growing market and is key to the group’s goal of reaching S$100 billion ($75 billion) of assets under administration by 2028. Investors have bought into that vision, with iFast shares soaring more than 550% in the past 12 months -- beating all members of the FTSE ST All-Share Index.“The potential of the China market is immense, and the kind of losses we are generating today are a very manageable amount considering the size of the market,” Lim said in an interview. iFast’s shares rose 5.5% on Tuesday.Singapore-based iFast has benefited from a surge in retail trading by stuck-at-home investors trying their hands at equities, which helped the firm more than double net income last year. But to achieve the S$100-billion goal, first stated in 2018, assets will need to expand at a compounded annual rate of 27% through 2028, Lim said. That compares with an annualized rate of 34% the past two years.“The group continues to be in investment mode which it expects will help reap benefits at a later stage,” Krishna Guha, an analyst at Jefferies Financial Group LLC, wrote in a note last month, referring to iFast’s China business.iFast has good “growth momentum” in China, Lim said, though it reported S$4.9 million in losses in that market last year. The CEO said there is “no timeline for breaking even.”iFast, which counts Singapore as its biggest market, initiated private-fund management in China this past February. The broker relies on other businesses including financial advisers and internet firms to sell its funds in the large Chinese market, Lim said, adding that about 80 such companies are being used to make those connections.The broker remains focused on expansion. In addition to being registered as a private-fund manager in China, iFast also won a contract for Hong Kong’s pension fund platform and started stockbroking activities in Malaysia over the past year. It’s also applying as part of a consortium for a digital-banking license in Malaysia -- though the firm lost out on getting one in Singapore last year.Even after the market-leading rally the past year, iFast shares are poised for further gains, according to analysts who cover the stock. All five of them have a buy rating and their consensus price target implies a gain of about 23% more over the next 12 months, compared with an estimated 13% rise in the broader FTSE gauge, according to data compiled by Bloomberg.(Updates prices throughout.)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) -- 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.
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.
‘Everybody wants to have asset prices forever going up and the cost of financing to be next to nothing,' Kerry Killinger says.
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.
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.
The payments will reach more than 65 million children, according to senior administration officials.
The legislation would outlaw penalizing taxpayers until the IRS clarifies its policies.
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.
AT&T Inc. shares are headed for their worst single-day performance in almost a year as investors continue to digest the company's decision to reshape its business yet again with a spinoff of WarnerMedia to Discovery Inc.
(Bloomberg) -- Bitcoin and other major cryptocurrencies slumped after the People’s Bank of China reiterated that the digital tokens cannot be used as a form of payment.The largest cryptocurrency fell as much as 5.3% to $42,430 in New York, continuing a week-long slide sparked by Elon Musk’s back-and-forth comments on Tesla Inc.’s holdings of the coin. Bitcoin is now at its lowest level since early February. Ether lost more than 7%, while last week’s sensation, Internet Computer, continued its plunge. Dogecoin also slid.“This is the latest chapter of China tightening the noose around crypto,” said Antoni Trenchev, managing partner and co-founder of Nexo in London, a crypto lender.Virtual currencies should not and cannot be used in the market because they’re not real currencies, according to a notice posted on PBOC’s official WeChat account. Financial and payments institutions are not allowed to price products or services with virtual currency, the note said.Beijing since 2017 has abolished initial coin offerings and clamped down on virtual currency trading within its borders, forcing many exchanges overseas. The country was once home to about 90% of trades but the lion’s share of mining and major players have since fled abroad.Read more: Bitcoin Chartists See Rout Worsening With $40,000 in FocusChina has recently taken steps to issue its own digital yuan, seeking to replace cash and maintain control over a payments landscape that has become increasingly dominated by technology companies not regulated like banks.“It’s no surprise to me, as Chinese capital controls can be challenged by cryptocurrency purchases in the country and transfers out of the country,” said Adam Reynolds, CEO for APAC at Saxo Markets. “So avoiding use of them in the country is essential to maintaining capital controls. The only tolerable digital currency to a government with strong capital controls is their own CBDC.”Many chartists and technical analysts are looking at Bitcoin’s 14-day Relative Strength Index (RSI), which entered oversold levels Tuesday. In addition, an acceleration in its selloff could mean the coin approaches its next support around $40,000. A fall to that level would mark the first time since September that Bitcoin would test its average price over the past 200 days. And breaching it could mean it drops to $30,000, where it’s previously found support.For Stephane Ouellette, chief executive and co-founder of FRNT Financial, the moves have more to do with Musk’s recent tweets about Bitcoin.“It’s just a bit of a mess. TSLA’s entrance into the space saw some of the most aggressive BTC buying I’ve personally ever seen -- and it has to unwind,” he said. The EV-maker’s retraction that it will accept Bitcoin as payment “was the catalyst that accelerated the spread consolidation. Then over the weekend, little comments here and there have continued to confuse.”Meanwhile, the latest Bank of America fund manager survey showed that “Long Bitcoin” is the most crowded trade in the world right now. The poll captures 194 fund managers with $592 billion worth of AUM overall.“The fact that the BofA manager survey shows that the ‘long Bitcoin’ trade is the most crowded one on the Street right now isn’t helping either,” said Matt Maley, chief market strategist for Miller Tabak + Co. “When an asset becomes the most crowded trade in the BofA survey, it has frequently signaled a near-term pullback in the past. When you combine this with the news out of China, it’s not a surprise that Bitcoin is seeing some more weakness.”(Updates throughout, adds technical analysis, adds Ouellette comments)More stories like this are available on bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
There are good and bad financial decisions on certain topics, but a decision like this where you have such a high level of savings at your age means you’ve already won in many respects. You never have to worry about a monthly mortgage payment. This isn’t a great feature in times of financial hardship or when you need to access your investment dollars.