India’s $10 Billion Foreign Debt Sale: Investors Debate Options

As India’s $10 Billion foreign bond issuance has caused confusion, what options do investors have? Source: Yahoo With India’s plans for its inaugural overseas bond sale shrouded in confusion, investors are assessing the government’s options for the $10 billion offering. The departure of the official handling the sale and reports of opposition from the prime…

Read More

Fitch, Moody’s cut Boeing’s debt outlook to ‘negative’ on 737 MAX problems

Fitch and Moody’s lowered their outlooks for Boeing as 737 Max saga continues Source: Thomson Reuters Fitch Ratings and Moody’s lowered their outlooks for Boeing Co (BA.N) to “negative” from “stable” on Monday, citing delays in its 737 MAX jets’ return to service. The revision, which comes on the heels of Boeing’s nearly $5 billion…

Read More

As defaults rise, China bond markets are pricing risks better

Due to 60% increase in defaults in China, spreads go wider as bond investors demand larger premiums to hold riskier debt Source: The Telegram SHANGHAI – July 15 proved a rough day for Chinese bondholders, bringing defaults by five issuers including Jinggong Group, an industrial conglomerate whose interests span steel, finance and rice wine. But…

Read More

Scotiabank Turns to Dollar Market for Its First Green Bond

Start of Green Bond era? Scotiabank set to issue $500 million – 3.5 year Green Bond Source: Bloomberg Bank of Nova Scotia is debuting in the green bond market following other Canadian rivals including Royal Bank of Canada. The Toronto-based lender is set to price $500 million of 3.5-year senior bail-in green bonds at a yield…

Read More

Sovereign Wealth Funds Love Bonds Now. But Why?

Sovereign investors are buying bonds as a defensive position on the back of improving yields Source: Bloomberg Sovereign investors command an astounding amount of assets, yet traders typically have only a vague sense of what these behemoths are doing with all that money. Invesco Ltd. has at least one answer: They’re buying bonds. For the first time…

Read More

Greece Bond Issue Talk Resurfaces in Post-election Glow

Greece might issue new debt at lower borrowing cost to pay back IMF loans Source: Financial Post Greece’s debt agency could take advantage of a post-election boost to issue new debt at record low borrowing costs in the coming weeks to repay an expensive International Monetary Fund loan, sources told Reuters on Monday. Two bankers…

Read More

Mistakes by Markets?

Bonds might have overreacted on inflation; “Pay Rises, Not Price Rises” Source: Reuters With yields across the developed world in free-fall, markets appear to have convinced central banks that only drastic monetary stimulus can prevent inflation expectations from evaporating for a lifetime. But might those markets be reading it wrong? If so, policymakers in Japan,…

Read More