Fitch Affirms Cenovus’s IDR at ‘BB+’; Outlook Positive; Assigns ‘BB+’/’RR4’ to Husky Issuances

Fitch Ratings – Chicago – 04 Jan 2021: Fitch Ratings has affirmed Cenovus Energy Inc.’s (CVE) Long-Term Issuer Default Rating (IDR) at ‘BB+’, and senior unsecured ratings at ‘BB+/RR4’, following the close of the Cenovus-Husky merger. The Rating Outlook remains Positive. Source: Fitch Ratings In addition, Fitch has assigned ‘BB+’/’RR4’ ratings to Husky Energy Inc.’s…

Read More

Bond ETFs Survived 2020 Liquidity Scare. But Just Barely.

You don’t need to be an expert in financial market structure, nor in fixed-income investing, to understand that an “illiquidity doom loop” is a very bad thing. Source: Bloomberg This phrase made its first appearance in a Bloomberg News article on Friday, March 20, when Mizuho International Plc’s Peter Chatwell raised the alarm about certain exchange-traded funds tracking the bond markets….

Read More

Traders See Cash Tightening in India to Drive Bond Playbook

India’s sovereign bond investors are converging on a trade idea for 2021. They’re betting that short-term yields would rebound as the central bank soaks up excess cash on signs of an economic recovery. Source: Bloomberg RBL Bank Ltd. and Quantum Asset Management Ltd. are among those forecasting that liquidity tightening by the Reserve Bank of…

Read More

The TRADE’s Crystal Ball 2021: Fixed income and post-trade

We expect to see further growth in the ETF market next year as investors assess opportunities to broaden the diversity of their portfolios through investments that provide exposure to a variety of industries, asset classes and exchanges across the globe at low cost. Source: The TRADE The European market in particular is expected to continue…

Read More

Asia’s Best Credit Funds Say Junk Bonds Will Be Key in 2021

When global bond markets dipped in February, fund manager John Stover dove in, predicting a rebound, only to watch prices collapse as the coronavirus pandemic raged on. Stover kept buying. Source: Bloomberg “It never feels good to buy at the bottom or when things are going down,” he recalled earlier this month, describing hasty phone calls to portfolio…

Read More

Seth Bernstein: Diversification via fixed income “if not dead, is in critical condition”

Seth Bernstein, the CEO of US$622 billion AUM asset manager AllianceBernstein, has opened the Fixed Income Leaders’ Summit US today, with an analysis of the challenges facing bond investment management and the changes necessary to overcome those challenges. Source: TheDesk “I am one of those people that does believe the diversifying role of fixed income…

Read More

Boom in Fintech Bond Sale Platforms Risks Fragmenting Market

Bond buyers and sellers are warning that a recent proliferation of fintech platforms seeking to modernize debt sales around the world risks backfiring, making it more difficult to price deals. Source: Bloomberg The concerns follow a flurry of new technologies from New York to Hong Kong trying to drag the process of placing bonds into…

Read More

Bond yields to stay put despite soaring global debt – Reuters poll

BENGALURU (Reuters) – Major sovereign bond yields, guided by central banks, will stay low despite soaring global debt levels and investors looking beyond fixed income securities for better returns, a Reuters poll found. Source: Reuters Following a November stocks rally, investors moved into risky assets, helping sovereign bond yields stay off March life-time lows as…

Read More

Why Bond Investors Are Taking On More Risk

“New highs” have different meanings for the stock and bond markets. New highs in equities are cheered universally, with big numbers such as Dow 30,000 celebrated by investors sitting on presumably big gains. For bonds, new highs in prices translate into new lows in yields, given that the two quantities move inversely. Source: Barron’s On…

Read More