junk bonds

The top 10 Charts for 2018

Callum Thomas

I spent a lot of time in the 2017 End of Year Special Edition looking back across the year, covering some of my best charts and calls (and some of the worst!). But this article provides a look at the most important part of that report. Show More

A major credit event could be coming

Livewire Equities

Roger Montgomery, Chief Investment Officer at Montgomery Investment Management, is worried about rising default levels in the US. “I’m very concerned that we’re about to see some sort of credit event,” he said in a recent interview. “Between now and 2020… we’re going to see in the US alone, something... Show More

junk bonds ASX:SYD

What credit markets are telling us now

Jonathan Rochford

Hyman Minsky explained that it is the availability of credit that drives business cycles. If businesses are able to easily borrow they will expand, if the availability of credit dries up they will contract. The US high yield market, via the Merrill Lynch US High Yield Master II, is the... Show More

macro leading indicators junk bonds the buy side brief

10 big things that happened in markets this year

Livewire News

Bloomberg has released its “2015: The year in Money” report. The 10 highlights were 1) Apple hit a record $775B market cap. 2) Netflix was the best performer in the S&P500 (Up 143%) 3) Sales of investment grade corporate bonds are at an all time high. 4) The junk bond... Show More

Just how mature is the current credit cycle?

Livewire Exclusive

A recent spate of credit downgrades in the US has thrust high yield credit into the spotlight. The Fed will be acutely aware of the ructions taking place in credit markets with a number of high profile credit funds freezing investor redemptions and junk bonds providing negative returns for the... Show More

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Implications of rising US rates for Australian companies holding US Debt?

Sam Ferraro

In its most recent credit update for Transurban - following the announcement of the acquisition of AirportLink M7 - Moody’s highlighted that the company’s ratio of funds from operations to debt was expected to remain the mid-6% range compared with the rating tolerance level of 6% and drew attention to... Show More

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Implications of rising US rates for Australian companies holding US Debt

Angus Coote

When the tide goes out all boats are effected. Unfortunately for Aussie corporates with offshore debt, 2016 is shaping as a challenging year in global debt markets. Investment Grade credit spreads (a measure of corporate debt quality) have been widening/cheapening since mid 2014, however, the high yield and leveraged loan... Show More

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The market is missing the signal from the junk bond market

Livewire News

“The junk-bond default rate rose to 2.6% from 2.1% this year and will likely jump to 4.6% in 2016, breaching the 30-year average of 3.8% for the first time since 2009, said New York University Finance Professor Edward Altman, inventor of the most commonly used default-prediction formula, who has been... Show More

fixed income macro high yield bonds junk bonds global economics

5 reasons why RBS says you should be worried about junk bonds

Tom McKay

5 reasons why RBS says you should be worried about junk bonds. 1) Any potential change in Fed forward-guidance comes from an unprecedented period of easing. As unemployment gets closer to 6% and growth accelerates, low-for-long will come under additional pressure. 2) The plumbing of credit markets has changed since... Show More

fixed income high yield junk bonds

Cullen Roche says the worrisome part of the junk-bond market is not the valuations as much as the sheer magnitude of the issuance

Tom McKay

Cullen Roche says the worrisome part of the junk-bond market is not the valuations as much as the sheer magnitude of the issuance. Roche is particularly worried about Europe, in the first two quarters of 2014, European high yield bond issuance outstripped U.S. issuance for the first time in history,... Show More

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