(Bloomberg) — Multiple stress points are emerging in credit markets after years of excess, from banks stuck with piles of buyout debt, a pension blow-up in the UK and real-estate troubles in China and South Korea. With cheap money becoming a thing of the past, those may just be the start. Distressed debt in the […]
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) — China has surged ahead of the US for corporate bond deals in its yuan credit market in recent months, a rare shift that highlights the deepening impact of the two countries’ diverging monetary policies. Yuan-denominated bond issuance by non-financial firms exceeded that in the greenback in both July and August, a first for […]
Read More(Bloomberg) — Investment-grade issuers may sell bonds at a faster pace next week after market volatility had pushed many borrowers to the sidelines over the past month. Estimates for next week’s U.S. high-grade bond sales call for $25 billion to $40 billion. That’s well ahead of this week’s sales, which fell shy of consensus for […]
Read More(Bloomberg) — Credit investors are in a “sell what you can” mood in an environment of rising rates and political tensions, a Bank of America Corp. survey showed, with Goldman Sachs Group Inc. strategists telling clients to switch to cash. The net overweight position in investment-grade credit has dropped to 16%, the lowest since February […]
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