A $10 Trillion Corporate Debt Bomb Is Waiting to Explode the U.S. Economy

Investment-grade corporate bond issuance has already exceeded this year than for the whole of 2019. U.S. companies now owe more than $10 trillion, which is nearly half of the country’s 2019 GDP of $21.5 trillion. With corporate profits remaining weak throughout the covid crisis, we are surely in for a slew of downgrades and defaults. Track financial…

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A trading tool that’s transforming the $10 trillion-plus corporate bond market

Once unwieldy and time-consuming, tech innovation is rapidly turning portfolio trading mainstream. In a portfolio trade, an asset manager picks a basket of securities to buy or sell, then analyses them on various metrics such as liquidity, inclusion in ETFs and transaction size. Utilize Overbond’s custom bond basket creation tool to construct strategies and diversify…

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Bond Traders Aim to Separate Distress from Doom

Great thoughts from Brian Chappatta, about sifting through US corporate bonds and sorting out the companies that are merely distressed from those that are ultimately doomed. Utilize Overbond’s Market Surveillance and Fundamental Momentum tools to separate great buys from looming downgrades.  Source: Bloomberg Investment-grade bonds have become almost a commoditized asset class, given the Federal…

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More corporate defaults seem to be on the way

Despite a mini-boom in the bond market, credit defaults are priced in. Companies are mercilessly sorted by recessions. The strongest credits grow stronger. The weakest investment-grade firms descend into junk territory. And the most frail speculative-grade firms go into default. Use Overbond’s market surveillance capabilities and trending financial ratios to monitor the credit landscape for…

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Reopening risks linger in weary US corporate bond market

Issuers have rushed to market to sell more than US$660bn of the US high-grade bonds in the roughly two months since the Federal Reserve announced its corporate bond purchasing program. Although there is no sign of the issuance slowing, the looming risk of a second wave of Covid-19 only heightens the uncertainty for issuers seeking…

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When It Comes To AI, Capital Markets Has Barely Scratched the Surface

With the current market uncertainty, many companies are looking into AI to create efficiencies and save on costs. However, one particular area of the fixed-income market is not leveraging the vast potential for AI and data science-corporate bonds. Through utilizing AI, corporate bonds market could benefit from increased liquidity, greater capital efficiency, enhanced risk management,…

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Global Credit Market Seizes Up as Coronavirus Halts Bond Sales

Global corporate bond market door slammed shut on Coronavirus fears and uncertainty. Source: Yahoo Finance (Bloomberg) — The global credit machine is grinding to a halt. The $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus…

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