TURNKEY SOLUTIONS FOR WEALTH MANAGER AND FUND MANAGER
The S&P 500 index is trading at the highest level over its 200-day moving average since 2000. Various technicals for the S&P 500 are extended, begging the question on how long the rally can last. An overbought condition has been relatively clear since the beginning of the year. That said, the clearance of trade risks […]
S&P 500 – over 200-day moving average Read More »
The search for yield continues and the spread between the Barclays B rated US High Yield index and US treasuries narrowed to just 300 bps or a yield to worst of 4.9%. This is the lowest level since July 2007 for B rated bonds which sit just above the riskiest CCC debt. From a historical
Search for yield continues Read More »
The duration of the Barclays Global Corporate Investment Grade Bond index has increased from 5.9 end of 2013 to 6.9 end of 2019. During the same time period, the yield-to-worst fell from 2.9% to 2.2% and the Sherman ratio decreased from 0.5 to 0.3. A Sherman ratio of 0.3 implies that interest rates have to
Wipe out Investor’s yield Read More »
The yield premium between Greek 10yr government bonds (1.4%) and Italian 10yr government bonds (1.2%) has not been that narrow since 2009. This despite the fact, that Greece is a non-investment grade country with a BB- Fitch rating (Fitch BBB rating for Italy) and its debt/GDP ratio stands at 181% versus 134% for Italy. Investors’
Narrowing yield premium: Greece vs. Italy Read More »
The yield spread among Asian USD high yield corporate bonds (7.3% yield) and US high yield corporate bonds (5.6% yield) remains attractive at 170bps. If the US and China manage to agree on a “phase-one” trade pact, tensions should ease and provide the necessary market stability for spreads to narrow and the price for Asian
Asian USD High Yield Corporate Bonds Read More »
While business sentiment and export numbers are weakening, the consumer is in good health and remains the backbone of the US economy. Personal consumption advanced by +2.9% (Q3 annualized) and helped to prop up US gross domestic product (GDP), which expanded at 1.9% on an annualized basis. Chances are remote for the US to fall
US Export numbers weaken Read More »
Market nervousness regarding the US/China trade war may have reached a temporary peak and has calmed down. At the same time, the yield spread between Asian USD High Yield Corporate Bonds (yield-to-worst 7.7%) and Global USD High Yield Corporate Bonds (yield-to-worst 5.6%) has increased from 1.3% in April 2019 to 2.1% today and offers an
US/China Trade War Read More »
S&P Global Credit Ratings continue to deteriorate and Q3 2019 saw 164 downgrades versus 64 upgrades. This is the lowest ratio (0.39) since 2015 with the majority of the cuts being applied to the high-yield corner of the market.
S&P Global Credit Rating Read More »
Germany has the world’s first 30-year bond priced with a yield of -0.11%. In fact, Germany’s whole yield curve is now below 0%, meaning that the government is effectively being paid to borrow out to 30 years. The negative yield environment has accentuated even more and forces investors into higher risk assets. Read more about
30-year German bond yielding -0.11% Read More »
Germany’s 10yr bond yield is about to fall below the European Central Bank’s deposit rate as speculation abounds that more policy easing may be coming. The negative yield environment has accentuated even more and forces investors into higher risk assets. Read more about Credit Investments
German 10-year bond yield Read More »
