Archive for May, 2016

Credit Pipeline

Monday, May 16th, 2016

Via Bloomberg: IG CREDIT PIPELINE: PCLN, RAI, DGX Filings Added to List 2016-05-16 09:29:34.897 GMT By Robert Elson (Bloomberg) -- LATEST UPDATES * Priceline Group (PCLN) Baa1/BBB+, has asked BAML/GS/WFS to arrange investor calls today;last priced a new USD deal in March 2015 * Reynolds American (RAI) Baa3/BBB filed automatic debt shelf; sold $9b last June * Quest Diagnostics (DGX) Baa2/BBB+, ...

Corporations Slash Share Buybacks

Monday, May 16th, 2016

Via Bloomberg: Announced buybacks slumped 38% to $244 billion from a year ago Macro uncertainty and banks’ absence contributed to decline Corporate America has its eye on a new target as executives look to tighten their belts amid a slump in profits -- and this time shareholders won’t like it. After snapping ...

Jacksonville?

Sunday, May 15th, 2016

Via the FT: 7 hours ago by: Alistair Gray in New York Forget the bright lights and fast pace of living in two of the world’s greatest metropolises, city living for a new generation of financial workers is now more Jacksonville in Florida and Warsaw in Poland than New York and London. The US ...

Record Low 10 year Yields in Australia

Sunday, May 15th, 2016

Via Bloomberg: Australian bonds rose, pushing the benchmark 10-year yield to a record low, as signs of weaker growth in key trade partner China intensified concern that the South Pacific nation will struggle to turn its economy around without more policy stimulus. The yield fell as low as 2.215 percent, 30 basis ...

Trump and the Mighty Greenback

Sunday, May 15th, 2016

Via the FT: 3 hours ago by: Sam Fleming and Shawn Donnan in Washington Donald Trump has drawn scorn from economists for his threats to launch a trade war with China and to renegotiate the terms of US sovereign debt. Less noticed, however, have been the Republican presidential candidate’s apparent threats to dismantle ...

Should Banks Pay Borrowers?

Sunday, May 15th, 2016

Via the FT: By Patricia Kowsmann in Lisbon and Jeannette Neumann in Madrid Updated May 15, 2016 12:54 a.m. ET As interest rates in Europe fall near or below zero, lawmakers and consumer advocates in Spain and Portugal are attacking an ancient tenet of finance by insisting that lenders can owe money to borrowers. Banks ...

One Metric Says Equities Ain’t Rich yet

Sunday, May 15th, 2016

Via Bloomberg: Earnings yield vs bond yields still flashing bullish signals The gap is part of the dividend case on American equities A year of profit stagnation has left the S&P 500 Index’s price-earnings ratio flirting with some of its its highest readings since the Internet bubble. Judged against bonds, though, ...

Implicit and Explicit Guarantees in China

Sunday, May 15th, 2016

Via the FT: Implicit guarantees are ubiquitous in China, but one company went a step further when it appealed to the central bank to give an explicit reassurance to creditors that the government will not permit any default. China City Construction Holding Group Co saw yields on its Hong Kong-traded “dim sum” ...

Hedging Brexit

Sunday, May 15th, 2016

Via Bloomberg: PFA is hedging against Brexit’s fallout on the Danish euro peg Danish central bank says any bets against the peg will fail The man overseeing about $83 billion in Danish pension savings says the threat of a British exit from the European Union is now simply too big to ...

China Weekend Data is Weak

Saturday, May 14th, 2016

Via the WSJ: By Mark Magnier Updated May 14, 2016 4:32 a.m. ET 2 COMMENTS BEIJING—China’s industrial-production and investment data came in below expectations in April, despite Beijing’s aggressive easy-money policies in the first quarter, pointing to continued weakness in the world’s second-largest economy. Industrial output rose 6.0% year-over-year in April, compared with 6.8% growth ...