35.51 0.00 (0.00%)
After hours: 4:50PM EST
|Bid||0.00 x 301500|
|Ask||0.00 x 21500|
|Day's Range||35.45 - 35.53|
|52 Week Range||32.92 - 36.38|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||0.47|
|Expense Ratio (net)||0.40%|
BAML Survey: Fund Managers Aren't Optimistic about Recent Rally(Continued from Prior Part)Trade war still investors’ top concernIn Bank of America Merrill Lynch’s February 2019 survey, trade war concerns remained the top tail risk cited by
One of the industry’s components, Mattel, Inc. (MAT), hit its highest price point during the last bull market all the way back in 2013 and has been falling ever since. The drop has been so severe that Mattel stock actually fell to a lower price point in late December 2018 than it did following the 2008 financial crisis. Mattel beat revenue estimates by $80 million and earnings estimates by $0.23 per share – coming in at $1.52 billion and $0.04 per share, respectively.
High-yield corporate bond exchange traded funds, such as the iShares iBoxx $ High Yield Corp Bond ETF (HYG) and the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), struggled last year. Some market observers believe the junk bond rally could be short-lived and that the asset class could disappoint again this year. “According to Bloomberg, high yield bonds limped into 2019 after suffering from a December selloff that was the worst month for the asset class since 2011,” said State Street in a recent note.
Responding to Rising Risks(Continued from Prior Part)VanEck Now, how is the market reacting to that? You see it in the fixed income markets, spreads are widening. Look at credit spreads, credit spreads are widening, a sign that default risks are
Despite a volatile end to 2018, investors have been piling into U.S. equities in January as the Dow Jones Industrial Average gained over 300 points on Friday while Treasury yields rose across the board. China purportedly offered to fix the trade imbalance with the United States by increasing purchases of U.S. goods, according to a Bloomberg News report. Per the report, China offered to increase its annual import of U.S. goods by over $1 trillion.
With the markets off to a solid start in 2019, investors are starting to dip back into the high yield waters. In fact, they dove in with $3.28 billion in flows the past week. This latest influx of capital ...
Junk bonds and speculative-grade debt-related ETFs started off on a solid footing in the new year as fixed-income traders grow more bullish on this riskier segment of the bond market. So far in 2019, the ...
January BAML Survey: Fund Managers Bearish, but No Recession Yet(Continued from Prior Part)Concerns about corporate leverageAs reported by CNBC, according to the Bank of America Merrill Lynch survey for January, hedge fund managers’ chief concern
After seeing some of the largest outflows among any US-listed exchange traded funds last year, the iShares iBoxx $ High Yield Corp Bond ETF (NYSEArca: HYG) and the SPDR Bloomberg Barclays High Yield Bond ...
With the Dow Jones Industrial Average posting five positive days in a row, investors are starting to dip back into the high yield waters. Exchange-traded fund (ETF) flows are showing that a risk-on sentiment ...
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? (Continued from Prior Part) ## Gundlach on US federal debt As reported by Reuters, Jeffrey Gundlach called the ballooning US (SPY) (VOO) federal government debt “a completely horrific situation.” In 2018, total US debt increased by $1.4 trillion, far more than the ~$900 billion budget deficit. Gundlach also said that the United States could be at a “tipping point” in a “debt-compounding cycle.” He asked, “Are we growing at all or is it all just the increase in debt?” ## Ballooning interest costs Moreover, Gundlach cited data provided by the CBO (Congressional Budget Office), which reflect rising interest costs for the US government. The CBO expects debt to reach 3.7% of GDP by 2035 from ~1.4% in 2015. ## Corporate leverage is also bad Gundlach is also focused on corporate leverage and said that there is a significant risk of downgrades in the BBB space as leverage has risen to near record highs. Gundlach used a historical leverage ratio analysis to highlight how large a portion of BBB rated bonds (BND) would be junk (JNK) right now. As reported by Yahoo finance, Gundlach said, “Actually, 45% of the entire investment grade bond market would be rated junk right now … based on leverage ratios. Forty-five percent.” Gundlach has also stated that while downgrades have started to happen, even more should have happened already. He thus expects a wave of downgrades to come. Continue to Next Part Browse this series on Market Realist: * Part 1 - Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 3 - Gundlach: Junk Bond Market Is Flashing Yellow on Recession
Investors like KKR say beaten-down junk bonds have cheapened enough to warrant selective buying despite lingering concerns over the dimming economic outlook and excessive indebtedness among U.S. corporations.
Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? (Continued from Prior Part) ## How near are we to a recession? Currently, one of the questions on the minds of most investors is whether we are entering a recession. According to a chart shown by Jeffrey Gundlach, if we consider the way junk bond spreads have generally behaved six months ahead of recessions, we’ll find that there’s no immediate contraction on the horizon. He notes, however, that according to the red line in the graph above, the recession risk is rising even if it’s still relatively early. ## Flashing yellow Gundlach is somewhat concerned about the high-yield junk bond (JNK) market, which he’s said is now “flashing yellow.” He added that while this could be a “false negative,” it’s “something we’re going to have to watch very, very carefully.” Gundlach also thinks that the corporate bond market has the potential for negative surprises. He thus advises investors to use the strength of junk bonds as a gift and get out of them. ## Yield curve and recession fears Regarding his outlook on the yield curve, the bond king has said that contrary to conventional wisdom, he expects the bond curve (TLT) (BND) to steepen. He noted that the yield curve will flatten but will steepen before a recession begins. At the beginning of December, part of the US Treasuries yield curve inverted for the first time since the recession, with the spread between five- and three-year Treasury yields narrowing to -0.01 percentage points. The most-watched spread, the one between the two- and ten-year Treasury yields, also narrowed the most it had since the previous recession. The markets (DIA) (IVV) have been concerned that more hikes from the Fed could invert the curve, which has usually been an accurate predictor of upcoming recessions. Continue to Next Part Browse this series on Market Realist: * Part 1 - Most of Gundlach’s 2018 Calls Were Spot On—What about 2019? * Part 2 - Jeffrey Gundlach: How to Survive the Market Zigzags in 2019 * Part 4 - Why Gundlach Expects a Wave of Corporate Downgrades to Come
Falling oil prices, rising interest rates and concerns about deteriorating credit quality were among the factors that chased investors from high-yield corporate bonds and the related exchange traded funds ...
As stocks continue to build forward momentum after a tumultuous December, it's been high-yield bonds going the opposite direction with the ICE BofAML US High Yield Master II Total Return Index resuming its downward trajectory. Investors looking to capitalize on the weakness in high yield can look to the ProShares Short High Yield (SJB) . With respect to their 200-day moving averages, SJB is tracking above this level while high-yield bond ETFs like the SPDR Bloomberg Barclays High Yield Bond ETF (JNK), iShares iBoxx $ High Yield Corp Bd ETF (HYG) and the Invesco Senior Loan ETF (BKLN) are languishing in the current risk-off environment.
Treasury Secretary Steven Mnuchin’s meeting with banks over adequate liquidity could bring attention to the dearth of trading in fixed-income markets
Money-Printer-In-Chief On Chopping Block? Federal Reserve Chair Jay Powell has incurred the wrath of the Donald of the weekend after a 4th hike in interest rates by the Federal Open Market Committee has arguably brought down stock prices to critical levels bordering on a bear market for the S&P 500 (NYSEARCA:SPY), though the Nasdaq (NASDAQ:QQQ) […] The post Market Morning: Trump Fumes at Fed, Treasury Auction Bonanza, Junk Bonds Get Junkier, Government Shuts Down appeared first on Market Exclusive.
Clearly Wednesday's action was not what I had in mind. Even if we didn't rally, I expected the selloff would be mild not extreme as it was. But the market had other ideas in mind. The most curious part is that if you squint you can see the Overbought/Oversold Oscillator turned up anyway.
In a rising interest rate environment, fixed-income assets typically fall out of favor. However, after the recent sell-off, corporate bonds and related exchange traded funds have attracted more attention, ...
Exchange-traded funds focusing on high-yield corporate paper, or “junk” debt, extend their struggles as oil markets came under pressure