Sweden’s $8.3bn green bond issuance outstrips Nordic rivals

Public sector green issuance has been overshadowed by Sweden’s local government funding agencies to surpass the total Nordic issuances in 2019. Source: Expert Investor Local government funding agencies have dominated regional public sector issuance. Sweden has issued a whopping $8.26bn in green bonds so far in 2019, equivalent to about half of the total issuance…

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Corporate Bonds Are All the Rage in Emerging Markets

Corporate Bonds Surge for the 12th Successive Month in Emerging Markets Source: Yahoo Finance Demand for corporate bonds is deepening in emerging markets as political strife from Hong Kong to Lebanon and Latin America drives investors away from government debt. The Bloomberg Barclays index for corporate securities in the developing world is rising for a…

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Credit Traders Play War Games as Brexit Lobs Political Bombs

Different Scenarios that Credit Traders are Considering as Brexit Uncertainty Lingers On Source: Bloomberg Gilts losing their protective buffer, the hard Brexit menace and even socialism with echoes of the 1970s. Debt investors are bracing for all of these scenarios — and more — as the U.K.’s second election in less than three years draws…

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Australia’s Top Pension Fund Sees New Bond Rally Helped by QE

Australia Nearing its First Quantitative Easing, Believes Australia’s Largest Pension Fund Source: Bloomberg Australia’s largest pension fund is positioning for another leg higher in sovereign bonds as the Reserve Bank of Australia gets closer to unleashing quantitative easing for the first time. The central bank may begin buying the country’s debt as soon as next…

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The Bond-Market Panic That Wasn’t

In contrast to previous years, 2019 has resulted in a big rally in BBB corporates, resulting in falling yields and strong total returns Source: Barron’s It was a popular narrative in the capital markets in 2018. The swarm of corporate bonds with the lowest investment-grade rating supposedly were on the precipice of a descent into…

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Italy Debt Chief Says Foreign Funds Returning to Nation’s Debt

Foreign Investors Return to Italian Bond Market as the Country’s Risk Premium Reduces Further from Last Year’s Highs Source: Bloomberg Italy is attracting foreign investors to buy its bonds as the new government’s more conciliatory stance toward the European Union on budget issues should reduce the country’s risk premium further, the head of the country’s…

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How bonds became stocks and stocks became bonds

Accurate systematic bond pricing becomes the key in solving volatility in bond prices due to stock-like trading Source: Financial Times Bonds have become the new equities, say fund managers, stirring concerns that dangers are lurking in the supposedly safest corners of financial markets. Historically, investors have for the most part bought government bonds for their…

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