The revision of the NAFTA agreement has eased concerns of an economic slowdown for the United States, Mexico and Canada causing U.S. government bond prices to fall along with a rising yield. Source: Wall Street Journal U.S. government bond prices fell Monday as the revision of the North American Free Trade Agreement eased investor concerns…
The Federal Reserve has raised the US short-term interest rate signalling it will go ahead with plans to tighten policy despite concerns of a trade war. The Fed will tighten monetary policy as the unemployment heads towards record lows and wage growth accelerates at its quickest pace in nine years. Source: Financial Times The Federal…
The Royal Bank of Canada will be the first Canadian financial institution to sell bail-in eligible securities. The bail-in eligible securities can be converted into equity should a bank get into trouble and will eventually replace deposit notes for Canadian banks. Source: Bloomberg Royal Bank of Canada is getting ready to sell the country’s first…
The yield curve has fallen to its flattest level since the 2007-09 recession which can cause bond-market investors to take notice and start bracing for a possible inversion. Traditionally safe assets like long- and short-term bonds have fared a bit better following yield-curve inversions. Source: Wall Street Journal The yield curve—the difference between the interest…
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…
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…
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…
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…
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,…
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…
Demand for Chinese convertible bonds rises as fixed
Greece returns to bond market to take advantage
