China’s Bond Traders Battle 1-in-5,500 Odds to Boost Returns

Demand for Chinese convertible bonds rises as fixed income investors look to boost returns Source: Bloomberg Shut out of a world-beating rally in equities, China’s fixed income investors are chasing the next closest thing. The battle for equity-like returns is driving up interest in the country’s nascent convertible bond market. Showing just how coveted the…

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Verizon Has Bond Market Seeing Green After Billion-Dollar Deal

Verizon Entering Green Bond Market Fuels Optimism That More U.S. Corporations Will Begin Tapping Into The Growing Pot Of Money Seeking To Invest In Sustainable Projects Source: Bloomberg Verizon Communications Inc.’s billion-dollar entrance into the green-bond market this week is fueling optimism that more U.S. corporations will begin tapping into the growing pot of money…

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Quants Claim It’s Their Time to Shine in the Bond Market

Quant Investing Is Slowly Expanding Beyond Stocks And Into Fixed Income Source: Bloomberg The quants are coming for the bond kings. In recent years, quantitative finance has reshaped equity-market investing, with trend-following strategies and risk-parity funds becoming such a force that they’re often seen as responsible for violent swings in stocks. Fixed income, on the…

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It’s the 18th Century in Canada Again as Covered Bond Sales Soar

Frederick the Great

Banks Issuing Covered Bonds To Reduce Their Funding Costs In Volatile Markets. Source: Bloomberg Canadian banks are issuing record levels of covered bonds, mortgage-backed debt pioneered in Prussia, helping them to lower funding costs in volatile markets. The country’s lenders have sold 5.75 billion euros ($6.5 billion) of covered bonds this year, up about 50…

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The Best Investments in Case of an Inverted Yield Curve

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…

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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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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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