MorningStar Archives - ��׶��Ƶ

Meta’s first-ever corporate bond deal sees $30 billion in demand despite Zuckerberg’s gloomy warning

Maria Acevedo — Thu, 04 Aug 2022 14:43:05 +0000

“While Meta has built a commanding ecosystem of apps and is investing heavily in the metaverse for the future (which may or may not be successful), we don’t believe the company’s economic moat is nearly as strong as that of Amazon,” wrote ��׶��Ƶ analysts on Thursday, about the bond offering.

The post appeared first on ��׶��Ƶ.

Corporate debt investors brace for tighter financial conditions in 2022

Maria Acevedo — Mon, 29 Nov 2021 21:00:18 +0000

The spread, or premium, investors earn on U.S. investment-grade corporate bonds (LQD) rose to near 101 basis points above risk-free Treasurys on Black Friday as worries mounted about the omicron variant of COVID-19. While still historically low, that was the highest level since March for the sector, according to ��׶��Ƶ, while high-yield bond (HYG) spreads rose by almost 40 basis points, pegged as the largest such move of the year.

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FTSE Struggles, Tesco’s Outlook Disappoints Investors, But Profit Remains Resilient

Maria Acevedo — Mon, 21 Jun 2021 16:03:13 +0000

A potential leverage buyout of WM Morrison by a private equity firm could hit the U.K. fourth-largest supermarket chain’s 2029 bonds the hardest and ��׶��Ƶ recommends clients to sell them. A change of control clause that provides a put option to bondholders–giving them the right to demand the issuer pay back the principal before the bond matures– will potentially benefit Morrisons’ 2031 notes to a much greater degree than the 2029 paper, which looks more vulnerable and least protected by the provision should conditions be satisfied, it says. “Some 305 basis points of spreads widening would need to occur [in the 2029 bond]before the prospective floor of a 100 put would kick in versus just 60 bp on the 2.5% 2031 [paper], it says.

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Corporate bond spreads hit new post 2008 low despite debt boom, inflation concerns

Maria Acevedo — Wed, 16 Jun 2021 16:07:27 +0000

“We know the economic backdrop is strong,” a team led by Erin Lyons, co-head of U.S. investment-grade research at ��׶��Ƶ, wrote in a note.

The post appeared first on ��׶��Ƶ.

AT&T Stock, Bond Prices Climb After Discovery Deal

Maria Acevedo — Mon, 17 May 2021 14:50:52 +0000

“AT&T has been clear that debt reduction is a primary focus for the company,” wrote ��׶��Ƶ analysts in a note Monday. “We believe AT&T should receive significant cash back in the deal, with the large majority to be used for debt repayment.”

The post appeared first on ��׶��Ƶ.

Rally in Europe’s Riskiest Corporate Bonds Masks Lagging Sales

creditsights — Tue, 09 Jun 2020 08:00:00 +0000

The availability of government-guaranteed loans from banks and other forms of financing in Europe means that high-yield credit markets haven’t been the first port of call for companies looking to raise funds, according to Tomas Hirst, European credit analyst at ��׶��Ƶ. That has left investors looking to dip into Europe’s high-yield market with few options to select from.

“The European market rally will continue until we get a big pick up in supply,” Mr. Hirst said.

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Big Money Managers Take Lead Role in Managing -2-

creditsights — Sun, 10 May 2020 08:00:00 +0000

“If you’re the firm running a large mandate, you’re going to be the first call from brokers and the destination for information. It could make it difficult for other investors to compete,” said Patrick Luby, a municipal strategist at research firm ��׶��Ƶ Inc. “But there will be benefits for others who can now take advantage of a healthy functioning market,” he added.

The post appeared first on ��׶��Ƶ.

Apple borrows $8.5 billion, joins record corporate debt borrowing spree

creditsights — Mon, 04 May 2020 08:00:00 +0000

For its part, Apple has $8 billion of debt coming due in 2020, mainly borrowed in the U.S. and Japanese debt markets, according to analysts at ��׶��Ƶ.

The post appeared first on ��׶��Ƶ.

Investors Hunt for Corporate-Bond Winners in Coronavirus Economy

creditsights — Tue, 17 Mar 2020 08:00:00 +0000

Also hard-hit are lower-rated, speculative-grade corporate bonds. There, spreads over Treasurys are up 3.91 percentage points this year as of Friday, to 7.27%. More than 55% of speculative-grade corporate bonds trading below 80 cents on the dollar are tied to the energy sector, according to ��׶��Ƶ. Telecommunications is second, followed by gambling.

The post appeared first on ��׶��Ƶ.

U.S. Treasury Yields Lower After Fed Cuts — Update

creditsights — Mon, 16 Mar 2020 08:00:00 +0000

Research firm ��׶��Ƶ estimates that moves by the Fed on Sunday will free up between $400 and $600 billion in bank capital to bolster their ability to lend during the pandemic. The eight largest U.S. banks have halted stock buybacks for the second quarter in an effort to preserve capital.

The post appeared first on ��׶��Ƶ.

MorningStar Archives - ���׶���Ƶ

Meta’s first-ever corporate bond deal sees $30 billion in demand despite Zuckerberg’s gloomy warning

Corporate debt investors brace for tighter financial conditions in 2022

FTSE Struggles, Tesco’s Outlook Disappoints Investors, But Profit Remains Resilient

Corporate bond spreads hit new post 2008 low despite debt boom, inflation concerns

AT&T Stock, Bond Prices Climb After Discovery Deal

Rally in Europe’s Riskiest Corporate Bonds Masks Lagging Sales

Big Money Managers Take Lead Role in Managing -2-

Apple borrows $8.5 billion, joins record corporate debt borrowing spree

Investors Hunt for Corporate-Bond Winners in Coronavirus Economy

U.S. Treasury Yields Lower After Fed Cuts — Update

MorningStar Archives - ��׶��Ƶ