Fears around China’s ability to contain a deadly coronavirus outbreak have given the U.S. junk-bond market its first major test of the year. Laredo Petroleum Inc. LPI, +2.21% and Range Resources Corp. RRC, +3.61% were two energy companies in January from a deluge of U.S. businesses that raced toRead More →
Risks of a U.S. corporate bond selloff often run high into the final months of the year when liquidity can get pinched and credit spreads widen. But this year could be particularly painful for investors who took up corporate bonds at today’s relatively low spreads, which are the level ofRead More →
Bonds issued by embattled U.S. energy companies with sub-investment-grade ratings saw a major boost Monday after oil prices spiked following Saturday’s attack on Saudi Arabia’s oil production facilities. Energy company defaults have weighed down the U.S. high-yield bond market all year as companies have struggled to balance slower global growthRead More →
Warren Buffett said “only when the tide goes out do you discover who’s been swimming naked”. If the Federal Reserve’s recent move to possibly lower interest rates results in weakness in the U.S. dollar, yield-hungry life insurance companies in Japan and Taiwan that bought dollar-denominated bonds without hedging for currencyRead More →
The U.S. junk-bond market may be flashing a new warning that the credit cycle is nearing its end. About $52.5 billion of corporate bonds issued by U.S. companies with “junk” credit ratings were trading in June at prices below 70 cents on the dollar, the highest amount in six months,Read More →
The U.S. market for high-yield corporate bonds followed stocks higher on Friday after a disappointing jobs report bolstered hopes that more economic stimulus could be on the way. The number of new jobs created in May reached only 75,000, well below expectations for a gain of 185,000 predicted by economists.Read More →
Will Nasgovitz, who oversees about $1.3 billion in assets as the chief executive of Heartland Advisors, isn’t calling for a “full blown financial crisis,” but, with trillions in corporate debt coming due in the coming years, the industry veteran’s not exactly predicting smooth sailing in the stock market, either. “WithRead More →
