Middle East fixed income proves a safe haven within emerging markets

Middle East fixed income proves a safe haven within emerging markets Source: The National Emerging markets are rarely uneventful, with no shortage of idiosyncratic risks that require constant vigilance. These events can dominate investor thinking, making it easy to neglect the broader opportunity the asset class offers. Indeed, there are parts of the emerging market…

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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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RBC Prepares to Blaze Trail With New Bail-In Eligible Bonds

RBC building

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…

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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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