Bonds articles

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GPIF Investment Committee Member Opposed CPI-Linked Bonds

GPIF Investment Committee Member Opposed CPI-Linked Bonds

A member of the investment committee for Japan’s government pension fund, the world’s biggest retirement savings pool, opposed the purchase of inflation-linked bonds, minutes of the group’s meeting last month show. Debt that protects buyers against consumer-price gains doesn’t shield them from credit risk or rising real interest rates, and the market for such notes

Germany’s 10-Year Bonds Little Changed After Growth Accelerates

Germany’s government bonds were little changed as a report confirmed the nation’s economy expanded at a faster pace in the fourth quarter than in the previous three months. Benchmark 10-year yields were about seven basis points from the lowest level since August. Italy is scheduled to auction as much as 2.5 billion euros ($3.4 billion)

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What’s safer: Individual bonds or funds?

Contrary to popular belief, both bond funds and laddered individual bond portfolios have identical risk. A common misconception is that bond funds are more exposed to interest-rate risk than laddered individual bond portfolios. The truth is that they have identical exposure. The logic for the standard view basically starts and ends with the observation that

U.S. Debt Risk Almost Cut in Half as Economy Outperforms Germany

U.S. bond risk has fallen to about half of what it was four months ago, trading near Germany’s level as the U.S. economy outperforms the European nation. The cost to protect U.S. debt against non-payment was 26.5 basis points, falling from 46 basis points in October. Germany’s was 25 basis points. The U.S. government this

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Wall Street Landlords Buy Bad Loans for Cheaper Homes

Wall Street-backed landlords are showing a greater appetite for bad mortgages as a source for cheap property as the supply of foreclosed homes declines while housing prices continue to climb. The companies have dominated U.S. foreclosure auctions in the last two years by buying as many as 200,000 single-family homes. Now American Homes 4 Rent,

Bond Dealers Seek U.S. Treasury’s Help in Regaining Grip on Debt

The Masters of the Universe immortalized by Tom Wolfe in his 1987 novel “The Bonfire of the Vanities” are feeling like mere mortals. The Wall Street banks known as primary dealers because they get to trade with the Federal Reserve and raise the money that the U.S. government needs to operate are concerned that they

Surpluses in U.S. States Spur Pushes for New Spending, Tax Cuts

U.S. governors, many flush with surpluses after years of austerity, say they won’t make the mistake of overspending as they face re-election in less than nine months. After emerging from an era of cuts, firings and tax increases that sparked clashes in state capitals, Democrat and Republican leaders said at a conference in Washington they’re

Moody’s assigns Aa2 to Des Moines'(IA) $16M Sewer Revenue Notes, Ser. 2014B; negative outlook removed

Moody’s Rating Issue: Sewer Revenue Capital Loan Notes, Series 2014B; Rating: Aa2; Sale Amount: $16,240,000; Expected Sale Date: 3/12/2014; Rating Description: Revenue: Government Enterprise Opinion Moody’s Investors Service has assigned a Aa2 rating to the City of Des Moines’ (IA) $16.2 million Sewer Revenue Capital Loan Notes, Series 2014B. Concurrently, Moody’s has affirmed the Aa2

Fitch to Rate Anchorage Capital CLO 3, Ltd./LLC; Presale Issue

NEW YORK–(BUSINESS WIRE)– Fitch Ratings expects to assign the following ratings to Anchorage Capital CLO 3, Ltd./LLC (Anchorage 3): –$300,000,000 class A-1 senior secured floating rate notes, ‘AAAsf’; Outlook Stable. TRANSACTION SUMMARY Anchorage Capital CLO 3, Ltd. and Anchorage Capital CLO 3, LLC (together, Anchorage 3) comprise an arbitrage cash flow collateralized loan obligation (CLO)

Mirae Shuns Mongolian Mining Junk Debt as Coal Slump Drains Cash

Mirae Asset Management Co. is avoiding junk bonds of Mongolian Mining Corp. (975) in the absence of a rebound in coal prices, as Moody’s Investors Service says any so-called distressed exchange would add to downgrade risks. The company’s 8.875 percent notes due March 2017 have declined 11 percent this year, bringing losses to 17 percent

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