When It Comes To Fixed Income, Time Is On Your Side.

With a higher-running yield, spreads now have to widen more and faster for price losses to overcome the large yield advantage that comes from holding credit. Source: Seeking Alpha As a professional bond manager glued to a screen watching prices every day, it’s hard to fathom that just a few weeks ago when March began…

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Bond yields are an even bigger market risk than bitcoin, according to a Wall Street strategist

 Joe Zidle, a portfolio strategist at Richard Bernstein Advisors, believes that investors are going into 2018 assuming that rising bond yields — which move inversely of prices and affect consumer borrowing costs — will stay low. Source: CNBC Forget bitcoin — the biggest risk to stocks next year will actually be the bond market. That’s…

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Don’t Worry About ECB Stimulus Even After Bond Buying Stops

Oxford Economics calculations suggests steady balance sheet from ECB will keep bond yields down Source: Bloomberg Markets As the European Central Bank brainstorms scenarios for winding down its 2.3 trillion-euro ($2.8 trillion) asset-purchase program, there is what may sound like a chicken-and-egg problem to solve. It goes as follows: when the central bank buys bonds and its balance sheet grows,…

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Global Bond Market Finds Bright Spot in Canada

As foreign investors seek opportunities in fixed income, Canada is an attractive prospect. Source: Wealth Professional One man’s loss is another’s gain, as they say. And as the current situation in the bond market shows, the maxim applies equally to entire countries and markets. According to an economic analysis by Warren Lovely, managing director and head of…

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U.S. Corporate Issuance May Get Boost in Europe

McDonald’s sold $2.3 billion of euro-denominated bonds last week as U.S companies take advantage of the eurozone’s cheap debt. Source: The Wall Street Journal A giant new buyer in the corporate-bond market–the European Central Bank–is set to cement a trend of American companies issuing debt on the continent. So great may be the flood, some analysts…

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As Bond Yields Rise, Some Investors Fear Another False Dawn

Promising signs in the bond market, as yields are heading higher around the world, a move typically linked to rising expectations of economic growth and inflation. Source: The Wall Street Journal As the Federal Reserve’s policy-setting committee prepares to meet on Tuesday, one signal suggests that investors believe the economy, and financial markets, may be finding…

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Investors turn south as Canadian high-yield bond market shrinks

  Riskiest corporate bonds in Canada may need better access to investors Source: Globe and Mail  The Canadian market for the riskiest corporate bonds is disappearing. Sales of high-yield bonds issued in the Canadian currency have slowed to just one $250-million offering this year, compared with seven issues totaling $1.45-billion through the same period in 2014, according to…

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