Markets

Corporate restructuring needs could surpass 2008 levels amid a surge in junk debt, BlackRock says

The scale of corporate restructuring could surpass financial-crisis highs on a swelling pile of junk-rated debt,BlackRock said Monday. Sub-investment grade debt outstanding ballooned to $US5.3 trillion since 2007. The coronavirus pandemic only exacerbated the growth, as the Federal Reserve’s bond purchases revived the credit market and companies rushed to raise […]
Corporate restructuring needs could surpass 2008 levels amid a surge in junk debt, BlackRock says
Markets

Wall Street CIO tells investors: ‘Don’t fight tech, own it’

David Bianco, DWS Group Americas chief investment officer, told CNBC that investors should own tech stocks right now, and wait until after the election to buy value stocks. “We all wish our entire portfolio were tech stocks right now. We’re overweight tech, and that has helped us,” Bianco said. He […]
Wall Street CIO tells investors: ‘Don’t fight tech, own it’
Markets

BlackRock says European stocks will beat their US peers going forward due to superior virus response

BlackRock upgraded European equities to “overweight” from “underweight” in its mid-year outlook, citing the region’s strong policy and public health response to the coronavirus pandemic. The firm also downgraded US stocks to “neutral” from “overweight,” as surging coronavirus case counts and fading stimulus measures pose a risk to the market’s […]
BlackRock says European stocks will beat their US peers going forward due to superior virus response
Markets

Fed’s Powell says bank’s corporate-credit ETF purchases will give way to individual bond buying

The Federal Reserve’s corporate-credit relief will move from exchange-traded fund purchases to taking in individual bonds, chairman Jerome Powell said Wednesday. Targeted bond purchases are “a better tool for supporting liquidity and market functioning,” Powell told the House Financial Services Committee. The statement follows the central bank announcing Monday it […]
Fed’s Powell says bank’s corporate-credit ETF purchases will give way to individual bond buying
Markets

The Fed begins purchases of up to $250 billion in individual corporate bonds

The Federal Reserve announced Monday it will begin purchases of individual corporate bonds. The move comes nearly three months after first unveiling the Secondary Market Corporate Credit facility and one month after it began buying corporate-credit ETFs through the program. The central bank will “create a corporate bond portfolio that […]
The Fed begins purchases of up to $250 billion in individual corporate bonds
Markets

US investment-grade debt issuance tops $1 trillion on back of Fed purchases

US investment-grade bond issuance topped $US1 trillion on Tuesday as the corporate-credit market rebounds from March lows. High-grade issuance on Tuesday reached $US11.2 billion across 11 deals, Bank of America strategists said in a note. Year-to-date bond offerings trounce last year’s pace, as companies issued roughly $US1.14 trillion in investment-grade […]
US investment-grade debt issuance tops $1 trillion on back of Fed purchases
Markets

Billionaire investor Bill Ackman turned $27 million into $2.6 billion by betting that coronavirus would tank the market

Hedge fund billionaire Bill Ackman turned a $US27 million position into a $US2.6 billion windfall as the coronavirus dragged stocks to multiyear lows and threatened deep economic recession. Pershing Square Capital Management turned to credit protection on investment-grade and high-yield bond indexes to bet on an increased risk of corporate […]
Billionaire investor Bill Ackman turned $27 million into $2.6 billion by betting that coronavirus would tank the market