(Bloomberg) — As the bond market limps toward 2023, it faces the prospect of a final bout of chaos, exacerbated by dwindling trading volume typical during the last weeks of the year. The most punishing time period on record for investors in US government bonds has also been one of the most volatile, with frequent […]
Read More(Bloomberg) — Investors are finding value in bonds for the first time in a decade as higher interest rates make fixed-income attractive, according to JPMorgan Chase & Co.’s Bob Michele. Yields on the benchmark Bloomberg bond aggregate index have soared to 4.7% from 1.75% at the end of 2021 as the Federal Reserve embarked on […]
Read More(Bloomberg) — For bond traders, the upward drift of Treasury yields hasn’t been that hard to predict. It’s the short-term swings that are vexing. The world’s largest bond market is being whipsawed by its longest stretch of sustained volatility since the onset of the financial crisis in 2007, marking a stark break with the stability […]
Read More(Bloomberg) — The odds are rising that corporate borrowers will struggle to repay their debts as the Federal Reserve opts for jumbo interest-rate hikes to combat inflation, according to UBS Group AG. Default rates for US leveraged loans could next year rise to 9% as long as the Fed stays on its aggressive monetary-policy path, […]
Read More(Bloomberg) — Credit markets are starting to buckle under pressure from soaring yields and fund outflows, leaving strategists fearing a rupture as the economy slows. Banks this week had to pull a $4 billion leveraged buyout financing, while investors pushed back on a risky bankruptcy exit deal and buyers of repacked loans went on strike. […]
Read More(Bloomberg) — The worst bond rout in decades is drawing more investors to government debt, with JPMorgan Asset Management joining the growing camp of bulls. Longer-dated sovereign notes in most developed markets are starting to look appealing given that yields are at levels last seen in 2010, according to Arjun Vij, a money manager at […]
Read More(Bloomberg) — As the Federal Reserve’s intensifying fight against inflation sinks every asset on Wall Street, investors are asking: Why buy now when things could get cheaper still? What started as a mild stock selloff this month has morphed into a deepening interest rate-spurred rout that’s wiped out virtually all of the summer gains in […]
Read More(Bloomberg) — A brutal wipeout in a $25 billion bond exchange-traded fund has investors wagering that the worst is over on the eve of a crucial Federal Reserve decision. The price of the iShares 20+ Year Treasury Bond ETF (ticker TLT) has plunged 38% from its August 2020 peak in the biggest drawdown since the […]
Read More(Bloomberg) — Equities extended declines on Friday, with an index of global stocks on track for the worst week since June, while a gauge of the dollar soared to a fresh record, reflecting bets for outsize Federal Reserve interest rate hikes. US futures dropped, suggesting the selloff that drove the S&P 500 index to its […]
Read More(Bloomberg) — Investors who might be looking for the world’s biggest bond market to rally back soon from its worst losses in decades appear doomed to disappointment. The US employment report on Friday illustrated the momentum of the economy in face of the Federal Reserve’s escalating effort to cool it down, with businesses rapidly adding […]
Read More(Bloomberg) — For just a moment Wednesday, so brief that if you blinked you may have missed it, the US Treasury curve inverted to levels not seen since Paul Volcker waylaid the economy with his fight to break inflation in the early 1980s. While you should only read so much into such a fleeting move, […]
Read More(Bloomberg) — Not many industry experts would shrug off a 35% drop for the S&P 500, but six-decade Wall Street veteran George Ball says a fall of that magnitude would be a normal adjustment. Ball, chairman of Houston-based investment firm Sanders Morris Harris, predicts the S&P 500 will bottom at 3,100 from its all-time high […]
Read More(Bloomberg) — Across Wall Street, from BlackRock Inc. to T. Rowe Price Group Inc., some veterans of the bond market’s booms and busts are seeing signs that it’s safe to start buying again. Few are eager to call the bottom just yet, not with inflation still surging at a four-decade high and the Federal Reserve […]
Read More(Bloomberg) — U.S. Treasuries tumbled Monday, driving the yield on five-year notes to the highest level since September 2008 amid speculation persistent inflation will prompt the Federal Reserve to tighten policy more aggressively. The yield jumped as much as three basis points to 3.11%, extending an advance that has seen the rate more than double […]
Read More(Bloomberg) — A day after celebrating the Federal Reserve’s signal that it wouldn’t be making any jumbo-sized moves, traders woke up on Thursday deciding that the central bank will struggle to fight high inflation amid the lingering threat of a recession. In a sharp about-face, investors sold stocks, bonds and cryptocurrencies on Thursday. At one […]
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