88.71 +0.02 (0.02%)
After hours: 5:04PM EDT
|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||88.61 - 88.73|
|52 Week Range||83.24 - 89.04|
|PE Ratio (TTM)||N/A|
|Expense Ratio (net)||0.49%|
"Over time, covenant quality is worst when the high-yield spread-versus-Treasuries is narrow and when new-issue volume is high," the long-time market observer writes in a client note. "The bottom line is that covenant strength deteriorates when market conditions are most favorable for issuers." In addition, issuers of high-yield debt at the lower end of the quality scale find receptive buyers when the market is strong. Doing so would spark complaints from investors that they are charging high-yield fees to manage money market funds." Reflecting the high-yield market's firmness, the iShares iBoxx $ High Yield Corporate Bond exchange-traded fund (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK) both ended Wednesday near their 52-week highs.
Investors have poured more than $100 billion into bonds this year. Fixed income experts believe a turnaround could be at hand.
Investors continue to shovel money into corporate bonds, squeezing the yield earned over Treasury bonds to fresh multi-year lows. The voracious buying of corporate bond funds has coincided with the latest ...
Exchange-traded funds, which have hit record after record in terms of assets and adoption in 2017, can add another milestone to the list.
Even junk bond investors have had to get used to a low volatility year. In the two months ended September 21, the high yield option-adjusted spread moved only two basis points -- from 364 to 362, finds Marty Fridson, ...
Next week comes with 11 Fed speeches. Meanwhile, this could be the GOP's last chance to repeal Obamacare before the year's over.
Harvard Management Company CEO N.P. Narvekar in his State of HMC letter wrote: "Our performance is disappointing and not where it needs to be." Narvekar is making changes he thinks will produce better returns more efficiently over time. Narvekar explains: HMC’s investment professionals have historically focused their work within specific asset classes. Portfolio managers conducted research and analysis and executed investment decisions within their respective asset class independent of the rest of the portfolio, sometimes creating both gaps in the portfolio and unnecessary duplication.
Investors shouldn't get too complacent about high yield overvaluation -- even though it has remained at extreme levels for going on a year and a half, says Marty Fridson, chief investment officer of Lehmann Livian Fridson Advisors. In his latest article on LCD News, a division of S&P Market Intelligence, he reports: High-yield’s overvaluation intensified in August despite a 24 bps widening of the BAML High Yield Index’s OAS, from 361, to 385 bps. An increase of 42 bps, from 610, to 652, in the fair value spread more than offset that widening of the actual OAS.
Fully 81% of global fund managers surveyed by Bank of America Merrill Lynch this month said corporate-bond markets are “overvalued.” That’s the highest level in 11 months.
Income-oriented investors should sell the PowerShares Senior Loan Portfolio exchange-traded fund (BKLN) and buy high-yield bonds or funds, says Brean Capital macro strategist Peter Tchir. In a follow-up to his previous recommendation to get out of the popular loan ETF or even short it, Tchir Tuesday expanded on why he prefers junk bonds to more conservative bank loans: "The Floating Rate element seems less valuable as the pace of Fed rate hikes slows significantly, if not coming to a complete standstill. "The seniority of being senior secured is less appealing here.
Emerging market bond ETFs have been raking in assets this year as investors grow optimistic about the outlook for developing economies, and hone in on the attractive yields the region offers. This is a pocket of fixed income that was bruised and battered following last November’s U.S. presidential election due to concerns about inflation, higher rates and the possibility of a strong dollar under the new administration.
A failure to raise the debt ceiling will likely result in a US government shutdown and a default by the US, which would be catastrophic for the global economy and financial markets (VTI) (USMV).
In this series, we'll discuss the looming US debt crisis, how the US debt has ballooned so much, and the impact of a debt crisis on equities (VTI), the US dollar (UUP), and fixed income (HYG) markets.
The U.S. government’s credit rating is the backbone of the public financial system. If such an event actually came to pass, it would roil financial markets as investors would have to reassess the credit worthiness of U.S. Treasuries. Hans Mikkelsen and Yunyi Zhang, both credit strategists at Bank of America Merrill Lynch, say Fitch’s warning in itself has little relevance for investment-grade corporate debt.
U.S. Steel (X) has a net debt-to-EBITDA ratio of 1.53x, while AK Steel’s (AKS) net debt-to-EBITDA ratio is 2.62x based on TTM financials.
Fund giant Vanguard Group unveiled plans Tuesday for a total-market corporate bond ETF that would offer the lowest expense ratio on the market.
The emerging markets high yield bond market has grown tremendously over the past 10 years, from $56 billion at the end of 2007 to $440 billion as of June 30,…
Compared to U.S. high yield bonds, emerging markets high yield bonds offered a 90 bps yield pickup as of June 30, 2017.1 The extra yield came with a lower duration (3.75…
Keith Bliss of Cuttone and Company joins Yahoo Finance's Alexis Christoforous from the floor of the New York Stock Exchange to discuss stocks wrapping up the third quarter and what to expect heading into the fourth quarter and year-end.
Sep.14 -- Steve Sosnick, chief options strategist at Interactive Brokers, discusses market volatility and his options strategy. He speaks with Bloomberg's Abigail Doolittle on "Bloomberg Markets."