The Bond Market Thinks It Knows What’s Coming Next From the Fed

The Federal Reserve has already unleashed a barrage of new policies to keep the economy out of depression. Investors reckon it’s lining up another one. The Fed’s version of the strategy known as yield-curve control is expected to involve capping yields on government bonds of a chosen maturity -– by buying however much it takes. For central banks that already […]

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Take the Money Before Things Get Worse, Junk Bond Salesmen Say

If there’s one lesson from the great financial crisis that applies to the current market turmoil, Todd Rothman argues, it’s this: take the money when it’s there. The managing director in JPMorgan & Chase’s high yield and leveraged loan capital markets team in London believes that with the future so uncertain, now is a good time for Europe’s high-yield borrowers […]

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Treasuries Extend Upward Move Amid Renewed Economic Worries

Following the notable advance seen over the two previous sessions, treasuries saw further upside during trading on Thursday. Bond prices moved higher early in the session and remained firmly positive throughout the day. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, dropped 3 basis points to 0.619 percent. Treasuries benefited from their […]

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CLO Reckoning Arrives: Downgrade Wave Tests $700 Billion Market

As U.S. financial markets have rebounded feverishly this past month from the worst of the coronavirus-induced sell-off, one asset has been conspicuously absent from the rally: the collateralized loan obligation. Prices in key parts of the almost $700 billion market — which through large doses of Wall Street alchemy provides financing to companies with less-than-stellar credit scores — have remained […]

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Treasuries Extend Upward Move On Troubling Economic Data

Following the strong upward move seen in the previous session, treasuries saw some further upside during trading on Thursday. Bond prices gave back some ground after an early advance but remained firmly positive. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.9 basis points to 0.609 percent. The continued strength on Wall […]

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