Apple, Oracle Dump Bonds and Create $300 Billion Hole in Market

As U.S. tax cuts prompt Apple Inc. and other tech companies to bring home their overseas cash hoards, it’s leaving a void in the market for short-term corporate bonds, where those firms had invested much of the money. That’s now making it more expensive for other companies to borrow. Source: Bloomberg   Once the biggest buyers of short-dated corporate…

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UBS trials Netflix-style algorithms for trading suggestions

UBS is beginning a trial program to apply algorithmic recommendations to suggest trades for its different asset classes. This initiative is beginning with trials to their corporate bond trading business with the hopes of providing suggestions similar to television shows and music recommendations hosted by consumer tech companies. Source: Financial Times   Picking an investment…

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World Bank Canadian Dollar Benchmark Bond Highlights Benefits of Investing in Women and Young People

The World Bank raised CAD 1 billion from institutional investors for its Sustainable Development Bond. This Sustainable Development Bond format helps the World Bank achieve its Sustainable Development Goals while gaining costs effective funding. Source: World Bank The World Bank (International Bank for Reconstruction and Development, IBRD rated Aaa/AAA) launched a Sustainable Development Bond to…

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If there ever was a time for corporate Canada to be more adventurous in the bond market, it’s now

30-year Government of Canada bonds are at their lowest level in a decade, providing issuers with an opportunity to secure long-term financing at a bargain price. Source: Financial Times Yields on 30-year government debt have plunged to more than a decade-low relative to the short end in the wake of the Bank of Canada’s latest…

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Bond trading algos find fresh hunting ground

Machines oust humans in the market for ‘odd lots’ of corporate debt   Source: Financial Times A quiet but important evolution is unfolding in a less glamorous corner of the US corporate bond market, as machines oust humans as traders of smaller “odd lots”of debt bought by both institutional and retail investors. Banks, asset managers,…

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Investors are so nervous about a potential recession that they’re preparing for one

Investors are nervous about a potential recession as they think we are in a classic case of late cycle economy that has been growing, but is poised to fall into a recession, amid tighter credit availability, lower profit margins and tighter monetary policy. Source: CNBC Some money managers are increasingly nervous about an upcoming recession amid…

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Rising corporate debt: Peril or promise?

Corporate bond issuance has increased 2.5 times over the past ten years, creating a broader and deeper market in many countries. But there are rising risks. Source: McKinsey Since the worldwide financial crisis in 2008, total global debt (including household, nonfinancial corporate, and government debt) has continued to rise, growing by three-quarters from $97 trillion in…

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Investors find value in emerging market debt

  Analysts and economists expect long-term rates in the U.S. to trade within a range possibly driving a search for yield in emerging markets, however, some advisors remain unconvinced and choose to take risks only in stocks, using low-risk, high-quality bond investments to balance a portfolio. Source: CNBC A good reason to buy the bonds of…

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Siemens profit takes a hit as the sector switches to renewable energy

 Siemens core industrial division reported that its quarterly profit fell as renewable energy continued to infiltrate its gas-and-oil business, on a global scale. Source: MarketWatch The closely watched industrial division at Siemens AG, which makes traditional power-generation equipment, recorded a 14% drop in profit in the three months to Dec. 31. Leading suppliers to the power sector,…

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