Tesla recently announced it would raise $1.5 billion through its first-ever offering of junk bonds to ramp up production of its new Model 3 sedan. Source: Reuters DETROIT (Reuters) – Tesla Inc said on Monday it would raise about $1.5 billion through its first-ever offering of junk bonds as the U.S. luxury electric car maker…
Canadian government bonds slumped to the lowest point in 23 years after the Bank of Canada raised interest rates on July 12. Source: Globe and Mail Investors are dusting themselves off after the worst two-month rout in Canadian government bonds in 23 years. Sovereign bonds lost 3.4 per cent in June and July, according to…
Source: Markets Media Although machine learning has made incredible inroads in the secondary securities markets, Canadian startup Overbond has brought the discipline to the primary corporate bond market. The vendor’s platform uses supervised machine learning to price potential issuances, score the likelihood of issuances, and identify potential institutional investors who might be interested in the…
The Great Unwind of extraordinarily accommodative global monetary policy got underway in earnest in June, 2017. If the global and Canadian economies are faring so much better, why have returns for Canadian investors on globally diversified portfolios have been hammered since the first five months of 2017? Source: Ted Carmichael Global Macro The Great Unwind of extraordinarily…
The initial debt offering by Quebec-based Alimentation Couche-Tard Inc. was priced at very attractive terms for a three-part offering totalling US$2.5 billion. Source: Financial Post It is not the biggest initial debt offering by a Canadian company in the U.S. dollar market but at US$2.5 billion, the three-part offering by Quebec-based Alimentation Couche-Tard Inc. that was…
Economists expect the Bank of Canada to raise its policy rate again in October; however, Canada’s bond market is signalling the BoC will not reach its two-per-cent inflation target anytime soon. Source: BNN Canada’s bond market is signalling the Bank of Canada will not reach its two-per-cent inflation target anytime soon, suggesting the central bank is…
Far from a cause for worry, issuing debt to fund pensions is actually a smart move for public companies like Kroger. Source: Barrons It must have raised some eyebrows on Monday when supermarket chain Kroger launched a big $1.5 billion bond sale—with a primary goal of funding its pension plans. Contributing to retirement plans may…
Amid narrowing spreads, non-investment-grade credits are expensive, cautions Greg Kocik of TD Asset Management. Source: Morningstar With high-yield-bond spreads over U.S. Treasuries approaching relatively low levels, and uncertainty about the Federal Reserve’s plans to start the process of unloading trillions of dollars of bonds from its balance sheet this fall, Greg Kocik argues that it…
Financial technology is upending supply chains and payment systems around the world, and it is starting to change major capital financing. Will technology transform the primary capital markets? Source: IFR Asia Barely a week passes these days without a senior investment banker leaving for a financial technology start-up. With jobs less secure and bonuses down,…
The green bond market is flourishing, but there is plenty of room for further growth. Treasury Today looks at the development of the market and explore why corporates should consider issuing green bonds. Source: Treasury Today In his outgoing address, former US President Barack Obama said: “We’ve led the world to an agreement [the Paris Accords]…
With trading volumes for US corporate bonds up
