Bond Investments that Beat Inflation

Income opportunities in fixed income still exist amid rising inflation Source: Morningstar The degree may vary, but most economists agree that inflationary pressures are re-emerging. A combination of factors, including a rising oil price, Trump’s reflationary fiscal policies and, in the UK, Brexit, are contributing to higher inflation expectations. Inflation has is an historic foe for…

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Bank Of China Plans Multi-Currency Green Bond

By entering the green bond market, the Bank of China potentially signals their interest in tackling increased pollution. Source: Morning Star Bank of China is planning a multicurrency green bond offering to fund eligible green projects, according to a mandate announcement. The Chinese lender plans to issue U.S. dollar-denominated and euro-denominated green bonds via its Luxembourg branch,…

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This $600 Billion Bond Manager Says Don’t Count on Liquidity

Changing market structure resulting in historically low fixed income market liquidity presents challenges but also opportunities for fixed income investors Source: Bloomberg Michael Lillard, who oversees more than $600 billion as head of fixed income at Prudential Financial Inc.’s asset manager, said investors have to adjust to a market in which it’s become more difficult to…

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Education Management Corp. Seeks to Reverse Ruling Protecting Minority Bondholders

Lawyers for firm say ability of businesses to restructure debt outside of bankruptcy proceedings is on the line Source: The Wall Street Journal Warning that the ability of troubled businesses to restructure their debt outside of bankruptcy proceedings is on the line, lawyers representing for-profit education company Education Management Corp. and its lenders have urged an…

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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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