While Yields and Commodities are accelerating up, Equities are struggling. Such cross asset developments, especially following the recent surges in risk assets (since early 2016, and then more generally since […]
Tesla is selling bonds to bolster its balance sheet and support spending on the Model 3 sedan. The company plans to offer $1.5 billion in senior unsecured notes due in 2025, according to a statement. Tesla said it intends to use the proceeds to produce its most affordable model and for general corporate purposes. It would be the company’s first sale of non-convertible bonds, according to data compiled by Bloomberg.
Recent years have seen strong growth trends in the European corporate debt markets. This has provided a solid base for EHY to grow, becoming increasingly diversified with improved overall credit quality. Rather unsurprisingly, it is more appealing to investors as a result. With two full credit cycles since the late 1990’s behind it, the EHY sector is now an integral part of the global leveraged finance market. It may still be perceived as the smaller sibling of US High Yield, but that masks how fast it is growing and maturing.
The media has credited Trump for the rally in yields and the recent swoon in the equity market. The argument goes that Trump’s policies notably with higher spending, lower taxes and less regulation will be positive for growth and inflation.
Warrants have gained in popularity over the past decade, but are more and more challenged by CFDs and the growing offer in Switzerland. Both products offer leverage and the possibility to profit from rising and falling markets, yet they are inherently different. So what really sets them apart? And most importantly, which is best for you?
The investors race to be considered safe havens in times of uncertainty has increased the amount of sovereign bonds in circulation worldwide at negative yields. According to Fitch Ratings, until last Monday the total stood at 11.7 trillion dollars, an increase of 12.5% compared to the end of May. According to the rating agency, the thing to note is that investors are willing to hold them in the portfolio for a longer period.
The Brexit is a negative event for the merit of Britain’s credit, Moody’s says. The decision to leave the EU will lead to a prolonged period of uncertainty that will weigh on the economic and financial center of Britain.
The increased uncertainty in negotiations on new agreements EU-UK will likely reduce the flow of investment and confidence of businesses and consumers in the UK. Moody’s adds that the lasting impact of the vote for the exit will depend on the nature of the new EU-Britain ties.
Spain has placed on the market a 50-year state title. Following the example of Belgium who recently successfully priced titles in this length of time, even Madrid decided to refinance a maturing issue in 2066. Even Italy is considering to issue a 50-year bond, but for now nothing is yet planned by the Treasury. Interest in the very long-term emissions comes mainly from pension funds and insurance funds, in pursuit of higher returns to zero and at the same time to have in "investment grade securities portfolio". Spain in fact enjoys BBB + rating from Standard & Poo’rs and Fitch and Baa2 by Moody’s.
