36.99 +0.68 (1.87%)
After hours: 4:42PM EDT
|Bid||36.28 x 2200|
|Ask||37.00 x 1200|
|Day's Range||36.16 - 36.66|
|52 Week Range||28.82 - 38.04|
|Beta (3Y Monthly)||0.48|
|PE Ratio (TTM)||50.01|
|Forward Dividend & Yield||2.18 (5.97%)|
|1y Target Est||45.03|
Moody's Investors Service ("Moody's") assigned first time ratings to Midcoast Energy, LLC (Midcoast), including a B2 Corporate Family Rating (CFR), B2-PD Probability of Default Rating (PDR), and B2 on the senior secured credit facility, comprising its $100 million revolver due August 2023 and $650 million term loan B due August 2025. The outlook is stable.
(Bloomberg) -- The rally in risky corporate debt is far from over, according to the manager of the world’s best-performing high-yield bond fund.Nicholas Leach sees a tech-driven world that’s put a “mobile price-discovery device” in every pocket keeping inflation low. As a result, global monetary policy will stay loose, according to the portfolio manager at CIBC Asset Management, the C$134 billion ($102 billion) investing arm of Canadian Imperial Bank of Commerce.“Central banks are pushing investors into corporates worldwide,” said Leach, whose Renaissance High Yield Bond Fund at CIBC has returned 14% this year, the most among 68 global peers, according to data compiled by Bloomberg. “There will be an even stronger bid for corporates as global sovereign bonds sink further into negative yields.”Leach’s call for further gains comes after a blistering first-half for bonds amid bets the Federal Reserve will cut interest rates for the first time in more than a decade. U.S. high-yield debt has returned just over 10% this year, compared with 6% for investment-grade sovereign and corporate bonds, according to the Bloomberg Barclays indexes. That helped lure $3 billion to the iShares iBoxx High Yield Corporate Bond ETF in June, a monthly record, pushing its assets to $18.7 billion as of Wednesday.The frenzy has prompted some managers to cut high-yield exposure, including Pilar Gomez-Bravo. The portfolio manager at MFS Investment sees similarities in current markets to the speculative mania that brought on the financial crisis. She’s betting the rally is on its last legs.But Toronto-based Leach, who started his career as a computer programmer, said low inflation will keep the rally going.“Every single person now, including kids, teenagers, are all walking around with a mobile price-discovery device and that’s one of the key reasons why inflation is staying low,” he said. “You can just go to YouTube and learn how to fix old things, you don’t need to buy new ones. Also, if you need something, you can just buy second hand.”Enbridge BetHis high yield fund is 85% allocated to U.S. companies and 15% to Canadian, in both local currency and U.S. dollars. He invests in roughly 125 names, focusing on companies that are positioned to survive a cycle, but allowing for small positions in several distressed names.One of his largest bets is Enbridge Inc.’s hybrid securities due 2077. While not technically high-yield, they are trading like it, a strategy he’s used to buy other debt including Ford Motor Co. and Seagate Technology Plc.Enbridge hybrid notes are convertible to shares in the event of a bankruptcy or insolvency. He likes the company for its stable business, strong recurring cash flow and C$97 billion market value.“I’m not worried about a restructuring with Enbridge,” said Leach. “That is just extremely remote, so I don’t really need to worry about whether I have unsecured or secured notes.”With C$63 billion in debt, Enbridge’s subordinated notes are rated one notch below investment grade at Moody’s Investors Service, which means that some institutional investors can’t hold it. That’s causing them to trade about 380 basis points above benchmark government bonds, in line with companies that are way further into junk, he said.Leach, who holds an economics degree, uses models supplemented with credit and equity market metrics to quantify credit risk on a more granular level than spreads, taking the human emotion out of the equation, he said. The second step is to then analyze this data to figure out where the “markets might have it wrong.”“While part of me is happy I’m not writing code anymore, it has helped me a lot in terms of building some of these algorithms for our quantitative models,” Leach said.\--With assistance from Shin Pei.To contact the reporter on this story: Paula Sambo in Toronto at email@example.comTo contact the editors responsible for this story: Nikolaj Gammeltoft at firstname.lastname@example.org, Jacqueline Thorpe, Christopher DeRezaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Enbridge Inc has lowered oil-shipping requirements on its Mainline pipeline by nearly two-thirds, the company confirmed on Wednesday, a move likely to satisfy smaller producers that feared they would be elbowed out by the company's initial requirements. Enbridge now requires minimum volume commitments of 2,200 barrels per day (bpd), down from the 6,000 bpd commitment it previously sought, Enbridge spokesman Jesse Semko told Reuters. The company confirmed the change after sources said Enbridge had made the adjustment.
The divestment of Columbia Midstream assets is likely to advance TC Energy's (TRP) efforts to offload non-core assets to raise funds for key growth projects across North America.
Enbridge (ENB) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Enbridge (ENB) believes that the shipper will appreciate Express Pipeline open season since the pipeline bottleneck problem prevents transportation of sufficient oil from Canada.
CALGARY, July 2, 2019 /PRNewswire/ - Enbridge Inc. (ENB) (ENB) (Enbridge or the Company) today announced it will be holding Open Seasons on the Express Pipeline Limited Partnership pipeline in Canada, for existing and expanded capacities, for service originating at Hardisty, Alberta, with delivery points on the Express Pipeline LLC pipeline in the United States. "Given the shortage of pipeline capacity out of the Western Canadian Sedimentary Basin, Enbridge has been exploring options to provide industry with incremental near term capacity," said Guy Jarvis Executive Vice President Liquids Pipelines. Bona fide potential shippers that desire to receive copies of the Open Season documents, including Open Season Procedures and Transportation Service Agreements, are required to execute a confidentiality agreement (CA).
Recent meetings with Enbridge Inc (NYSE: ENB ) management suggest heightened regulatory and project execution risks for the Line 3 (L3R) and Line 5 pipelines, according to Bank of America Merrill Lynch. ...
Shares of U.S.- and Canadian-domiciled firms, which account for roughly half of our 1,500-plus global coverage, look slightly less attractive following the Morningstar U.S. Market Index's 3% climb in the second quarter to June 25.
The acquisition of Alberta gas properties from Shell (RDS.A) is likely to allow Pieridae to use the output as Goldboro LNG feedstock.
Canada is struggling to push through the much-contested Trans Mountain Expansion, but in the meantime, the absolutely crucial Line 5 replacement is facing the risk of a permanent shutdown
To capitalize on the pipeline bottleneck in the Permian, MPLX has various pipeline projects underway, which are likely to poise the firm well for strong distributable cash flows in the future.
CALGARY, June 5, 2019 /PRNewswire/ - Enbridge Inc. (ENB) (ENB) (Enbridge or the Company) today confirmed it is proceeding with preparations to advance its 2019 plan in support of constructing a tunnel to house the Straits of Mackinac crossing of the Company's Line 5 pipeline. As previously announced, Enbridge believes the tunnel can be under construction in 2021 and in service as soon as early 2024, assuming no delays in the permitting process. Enbridge has further committed that operation of the existing Straits Line 5 crossing would cease immediately following the placement into service of the replacement pipeline in the tunnel.