DIRS.INFO The most relevant business & tech news

☆ How screwed is WeWork? One of its bonds trades at 56 cents on the dollar, and Fitch Ratings thinks default is a real possibility.
▼ + stars: | 2023-05-19 | by ( Alistair Barr | Joe Ciolli | ) www.businessinsider.com time to read: +3 min

One of its bonds trades at 56 cents on the dollar, and Fitch thinks default is a real possibility. One of WeWork's bonds, which matures in 2025, recently traded at 56 cents on the dollar, according to Bloomberg data. A healthy company's debt often trades at 100 cents on the dollar, or at a very slight discount. Fitch upgraded WeWork's issuer default rating to 'CCC-', in a nod to the debt restructuring. Discussions of debt restructuring represent a striking new low for a company that used to be one of the most valuable startups ever.

There are some signs that the broader $275 billion AT1 market is recovering. Reuters GraphicsLast month, Japan's Sumitomo Mitsui Financial Group (8316.T) was the first major global bank to sell AT1s since the March rout. With time, analysts expect UBS to sell AT1s aplenty to meet its capital requirements. It has a 700 million Singapore dollar ($755 million) AT1 bond repayable in November followed by a heftier $2.5 billion bond in January. RATINGS GAMEInvestor appetite for a UBS AT1 could also hinge on its future credit profile.

LONDON, May 9 (Reuters) - Ecuador sealed the world's largest "debt-for-nature" swap on record on Tuesday, selling a new "blue bond" that will funnel at least $12 million a year into conservation of the Galapagos Islands, one of the world's most precious ecosystems. Tuesday's $656 million "Galapagos Bond," as it has been dubbed, will run until 2041 and gave investors that bought it a 5.645% "coupon" or interest rate, its bankers said. Ecuador sovereign bonds currently yield from 17% to 26%, but the new bond has an $85 million 'credit guarantee' from the Inter-American Development Bank and $656 million of political risk insurance from the U.S. International Development Finance Corp (DFC), effectively making it less risky. The driver has been the remote Galapagos Islands, some 600 miles (970 km) off Ecuador's mainland coast, that inspired Charles Darwin's Theory of Evolution. Scott Nathan, the chief executive of DFC, said people needed to "stay tuned" for similar deals in other countries and the Galapagos deal had been a long time coming.

TOKYO, May 2 (Reuters) - Banking sector problems in the United States and Europe were caused by liquidity and interest rates risks, but won't impact on Japan's economy and financial system for now, Economy Minister Shigeyuki Goto said on Tuesday. Financial institutions and authorities will need to respond firmly to liquidity risks," Goto said. "I don't see the U.S. financial sector facing big problems." "The BOJ as central bank should tackle monetary policy operations, but I don't see the current financial situation impacting Japan's economy and financial sector as a whole. "I expect the BOJ to guide monetary policy flexibly, meaning that the central bank should do so appropriately taking economy and financial markets into account."

☆ Luxury goods giant LVMH becomes the first European company to surpass $500 billion in market value
▼ + stars: | 2023-04-24 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

A pedestrian carries a Louis Vuitton shopping bag, from a store operated by LVMH Moet Hennessy Louis Vuitton SE, on New Bond Street in London, U.K., on Wednesday, Oct. 21, 2020. Luxury goods giant LVMH on Monday became the first European company to surpass $500 billion in market value. Its shares hit a record high following the results, and hit another high on Monday. It reported revenue of 79.2 billion euros ($87.1 billion) for 2022, with profit from recurring operations of 21.1 billion euros — its second consecutive year of record results. In 2021, LVMH completed the acquisition of U.S. jeweler Tiffany & Co for $15.8 billion.

☆ China regulators plan new bond market rules, will coordinate more after turmoil, sources say
▼ + stars: | 2023-04-20 | by ( ) www.cnbc.com time to read: +3 min

"After the chaos, coordination between bodies will be strengthened," one of the regulatory sources said. Turnover in the market — the world's second-largest bond market with $21 trillion in notes outstanding — slid and traders said they had to scramble to chat groups for quotes. In contrast to the pre-ban market, Tullet Prebon's data is now available on all other bond market information platforms including Wind, Dealing Matrix and government-affiliated iDeal. China's interbank bond market operator also said on March 20 that iDeal now offers price data from six interdealer brokers. The strength of the market's reaction to the data ban had surprised authorities, according to one of the regulatory sources.

☆ A flurry of news outside the portfolio has implications for 3 of our stocks
▼ + stars: | 2023-04-13 | by ( Jeff Marks | ) www.cnbc.com time to read: +7 min

Here are three noteworthy news developments over the past two days, which contain useful insights about our stocks. For the full year 2023, Novo now expects sales growth in the range of 24% and 30%, compared to prior estimates of 13% to 19%. In addition, operating profit growth is expected to be in the range of 28% and 34%, up from a prior range of 13% to 19%. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ The coming commercial real estate crash that may never happen
▼ + stars: | 2023-04-09 | by ( Tim Mullaney | ) www.cnbc.com time to read: +10 min

"There's a lot of headaches about calamity in commercial real estate," said Kevin Fagan, director of commercial real estate analysis at Moody's Analytics. But credit in commercial real estate has performed well until now, and it's far from clear that U.S. credit issues spreading outward from real estate is likely. Analysts raised concerns that developers might default on a big chunk of $3.1 trillion of U.S. commercial real estate loans Goldman Sachs says are outstanding. "We're well aware of the concentrations people have in commercial real estate," Powell said at a March22 press conference. But there are reasons to believe lending issues in commercial real estate will be contained, Fagan said.

☆ Reactions: Canada 2023/24 budget deficit to jump, Ottawa to boost spending
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +7 min

JULES BOUDREAU, SENIOR ECONOMIST, MACKENZIE INVESTMENTS"The surprise was more on the revenue side more than the spending side. Prior to this budget we were not eligible for the carbon capture utilization and storage (CCUS) investment tax credit, but they have now broadened the eligibility parameters." "The big open question, heading into this budget was how was Canada going to react to the Inflation Reduction Act ... MARK ZACHARIAS, EXECUTIVE DIRECTOR OF CLEAN ENERGY CANADA"We thought today's budget was generally excellent and it sets Canada on a path for prosperity. "The investment tax credits for clean tech manufacturing positions Canada as a leader, particularly in zero-emissions vehicles."

☆ Companies Big and Small Lose Access to Credit Amid Bank Stress
▼ + stars: | 2023-03-24 | by ( Jack Pitcher | ) www.wsj.com time to read: 1 min

The capital markets have been on ice since the collapse of Silicon Valley Bank two weeks ago. No companies with investment-grade credit ratings sold new bonds over the seven business days from March 9 through March 17, the first week in March without a new high-grade bond sale since 2013, according to PitchBook LCD. The market for new junk-bond sales has largely stalled this month, and no companies have gone public on the New York Stock Exchange in more than two weeks.

☆ Argentina orders public sector to give up dollar bonds in debt shake-up
▼ + stars: | 2023-03-23 | by ( Eliana Raszewski | ) www.reuters.com time to read: +4 min

REUTERS/Agustin Marcarian/File PhotoBUENOS AIRES, March 23 (Reuters) - Argentina ordered public sector bodies on Thursday to sell or exchange their holdings of 11 sovereign dollar bonds in a bid to reorganize its debt as inflation soared above 100% and its foreign reserves dropped. A presidential decree in Argentina's official gazette said public sector bodies would have to sell or auction five local law dollar bonds maturing between 2029 and 2041, and to swap six foreign law dollar bonds for peso debt. The order makes official plans announced earlier in the week, which had dragged down the value of Argentina's sovereign bonds. These are already in distressed debt territory after a ninth sovereign default and a major debt restructuring in 2020. Public sector bodies will have to sell the local law dollar bonds and exchange foreign law dollar bonds maturing between 2029 and 2046 for debt payable in pesos issued by the Treasury.

HONG KONG, March 22 (Reuters) - China Evergrande Group (3333.HK) on Wednesday announced plans for the restructuring of its $22.7 billion in offshore debt, which could set a template for distressed rivals and shape investor sentiment on the country's embattled property sector. The world's most indebted property developer gave creditors a basket of options to swap their debt into new bonds and equity-linked instruments tied to two Hong Kong-listed companies, Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). With more than $300 billion in total liabilities including offshore debt, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks. "The proposed restructuring will alleviate the company's pressure of offshore indebtedness and facilitate the company's efforts to resume operations and resolve issues on shore," Evergrande said in the filing. Evergrande, which began one of China's biggest debt restructuring processes early last year, said on Monday that a key bondholder group had agreed to its proposed terms.

☆ China Evergrande set to unveil offshore debt restructuring proposal
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

HONG KONG, March 22 (Reuters) - China Evergrande Group (3333.HK) is set to unveil on Wednesday a restructuring proposal for its $22.7 billion offshore debt that could set the template for distressed peers and shape investor sentiment towards the country's embattled property sector. Two people with knowledge of the proposal said it would give creditors a basket of options to swap their debt into new bonds with extended maturity and equity in Evergrande's two Hong Kong-listed units - Evergrande Property Services Group (6666.HK) and Evergrande New Energy Vehicle Group (0708.HK). Evergrande, once China's top-selling developer but now the world's most indebted property developer, declined to comment. With more than $300 billion in total liabilities including offshore debt, Evergrande has been at the centre of a property debt crisis in which multiple Chinese developers defaulted over the past year, forcing many to enter debt restructuring talks. Evergrande, which began one of China's biggest debt restructuring processes early last year, said on Monday that a key bondholder group had agreed to its proposed terms and that it plans to publish the details on Wednesday.

☆ Fed's new banking backstop could slow balance sheet drawdown
▼ + stars: | 2023-03-15 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

Those bonds - collateral for Fed loans of up to a year in duration - will end up on the central bank's $8.4 trillion balance sheet. So far it has managed to shed nearly $600 billion of bonds from a balance sheet that topped out above $9 trillion in the middle of last year. "The more advantageous financial terms of the new Fed facility could divert a substantial amount of borrowing from the (Federal Home Loan Banks) and boost the size of the Fed's balance sheet," Wrightson said. Still, "reserve balances might not fall as much as they thought before because BTFP will actually add reserves and grow the balance sheet." Some observers believe the unsettled nature of markets right now means the Fed should consider stopping the balance sheet drawdown process.

To compound the problem, British shoppers are themselves starting to spend more in the European Union, where they can also reclaim the value-added tax (VAT) charged on goods. OWN GOALBurberry BRBY.L, Britain's biggest luxury retail brand, warned last year that London was losing out to other European cities over the VAT rule. "That's why tax-free was so important for them, and now we are the only country in Europe that doesn't offer it." Cadogan, the main landlord in the west London districts of Chelsea and Knightsbridge, whose estate spans over 90 acres, also called on the government to act. He said he had not considered the VAT issue before, because he was generally spending his parents' money.

☆ CIOs Build New Bonds With CISOs
▼ + stars: | 2023-03-14 | by ( Belle Lin | ) www.wsj.com time to read: 1 min

As cybersecurity attacks directed at enterprises continue to evolve, some corporate technology leaders are elevating the roles of their chief information security officers and stressing the importance of directly communicating to their boards of directors how cybersecurity risk can impact their business. “I was trying to think, how do we get cybersecurity at the head of the train,” said Wendy Pfeiffer , chief information officer of cloud-software firm Nutanix Inc. She and other technology leaders spoke Tuesday at The Wall Street Journal’s CIO Network Summit in Palo Alto, Calif.

☆ Argentina swaps $21.7 billion in domestic debt, dimming default risk
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

The swap exchanges old debt for new bonds maturing in 2024 and 2025, according to an economy ministry statement Thursday. "In this way, the uncertainty about the debt maturities of the coming months is cleared up, helping to preserve the sustainability of the Treasury debt," the ministry said. The swap, first announced Monday, prompted global rating agency S&P to slash Argentina's local currency rating to 'SD/SD' (selective default) from 'CCC-/C' Thursday. Though the debt swap is technically voluntary rather than a forced restructuring, the agency - and indeed the markets - still appear to view it as a distressed event. Argentina also still has an eye-watering estimated $170 billion of local debt due, given the swap only pushes back the payment deadline.

☆ Why Some Investors Are Still Waiting for Discounts on Corporate Bonds
▼ + stars: | 2023-03-05 | by ( Matt Grossman | ) www.wsj.com time to read: 1 min

New bonds from corporate stalwarts such as United Parcel Service contributed to nearly $150 billion in high-grade sales last month. Corporate-debt yields are near decade-plus highs and the economy is humming. Some investors still think bonds from America’s blue-chip companies are a bad bet. Their caution stems from the relatively scant premium offered by corporate bonds relative to ultrasafe U.S. government debt, which is also paying some of its most generous yields of the past 15 years. The 5.7% yield on investment-grade corporate bonds—among the highest since 2009 in Intercontinental Exchange index data—looks less appealing next to yields above 5% on some Treasury debt, several investors said.

☆ Analysis: Traders relaxed as ECB starts running down massive bond holdings
▼ + stars: | 2023-03-01 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +6 min

So far traders are optimistic, comforted by an initially small pace of bond sales and a predictable structure. U.S. and UK central banks have started QT, although the Bank of England was forced to delay its plans following turmoil in British bond markets last year. said DZ Bank's head of government bond trading Dalibor Jarnevic. If APP reinvestments stop before the end of 2024, ECB market presence would rely on reinvestments under the more flexible Pandemic Emergency Purchase Programme (PEPP). Whatever the size or pace, traders are seeking opportunities as the ECB makes the shift to QT.

☆ Olaplex sales plunge as the trendy hair care brand faces growing competition and a lawsuit
▼ + stars: | 2023-02-28 | by ( Alex Bitter | ) www.businessinsider.com time to read: +2 min

Olaplex's fourth-quarter sales fell nearly 22%, and the company expects the declines to continue into 2023. Net sales at the hair care brand fell nearly 22% to $130.7 million during the fourth quarter of 2022. The company's stock is down 76% since its September 2021 IPO. Olaplex faced competition from new bond-building hair care brands during the quarter, CEO JuE Wong said during the company's earnings call on Tuesday. "However, Olaplex products do not cause hair loss or breakage," she added.

☆ US companies rush to issue corporate debt, busiest February ever
▼ + stars: | 2023-02-28 | by ( Matt Tracy | ) www.reuters.com time to read: +2 min

Companies have been rushing to issue bonds as yields spiked to touch new highs with the Federal Reserve looking to keep interest rates higher for longer. The average yield on U.S. investment grade bonds rose to 5.55% on Monday from just 4.94% on Feb. 1. "There's much more yield now to be had in corporates," said David del Vecchio, co-head of the U.S. investment grade corporate bond team at PGIM Fixed Income. Investors still had plenty of cash, despite the flurry of issuance, said Blair Shwedo, head of IG corporate bond trading at U.S. Bank. "With more volatility, you may see some short term negative returns but overall, we’re well positioned to have a very nice positive total return in investment grade credit in 2023," said Natalie Trevithick, head of investment grade credit strategy at investment management firm Payden & Rygel.

☆ How to boost your portfolio income when companies cut dividends
▼ + stars: | 2023-02-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +6 min

Dividend stocks have long been a way for investors to earn income, but recent cuts may have some concerned about what to do next. However, those recent decreases are unusual, said Howard Silverblatt, senior index analyst at S & P Dow Jones Indices. Where to look for income Corporate dividends are just one source of income, and that income should be just one part of your overall portfolio, said certified financial planner Jamie Hopkins, managing partner of wealth solutions at Carson Group. Dividend funds Another option is an exchange-traded fund composed of dividend stocks. WDIV YTD mountain SPDR S & P Global Dividend ETF's year-to-date performance The ProShares S & P 500 Dividend Aristocrats ETF , also tracks the index.

☆ ECB lays out balance sheet run-off, will further favour green firms
▼ + stars: | 2023-02-02 | by ( Yoruk Bahceli | ) www.reuters.com time to read: +3 min

The ECB is laying out details after it announced in December it would run bonds off its balance sheet at an average pace of 15 billion euros per month from March through June. The ECB will allocate proceeds remaining after the rundown proportionally to upcoming maturities across its public sector, corporate, covered bond and asset-backed security portfolios, it said in a statement. For its public sector holdings, it will reinvest in proportion to upcoming redemptions by each country and across governments versus supranational debt, the bank said. The ECB said it will also would skew remaining corporate debt reinvestments "more strongly" towards companies with a better climate performance, enhancing a process it first started in October. By raising longer-term borrowing costs, the winding-down of its bond portfolio should tighten financial conditions, making it more expensive for firms and governments to borrow.

"Credit spreads have rallied across the board since the beginning of the year despite heavy (new bond) issuance and are at multi-month tights. This puts the credit market at odds with economic forecasts and the rates market," Barclays strategists said in a recent note. They said U.S. investment grade bonds rated BBB implied a 30% chance of recession, and CCC rated bonds implied a 35% chance. In the most bullish scenario, investment-grade bond spreads could tighten another 20 to 30 basis points, but they could widen much more if the economic downturn is deeper than anticipated, he added. Reporting by Davide Barbuscia and Matt Tracy; Editing by Shankar Ramakrishnan and Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ Interest rates are high. Here’s a relatively safe way to squeeze more from your cash
▼ + stars: | 2023-01-25 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Be aware that money market accounts offered by a bank are subject to protection from the Federal Deposit Insurance Corp. This isn't the case with money market funds, which can't guarantee that you won't lose money. When shopping for a money market fund, look for offerings that hold high quality underlying investments, and be sure to keep an eye out for fees. Money market funds that Lawrence likes include the Federated Hermes Prime Cash Obligations Fund (PCOXX) and the Fidelity Tax-Exempt Money Market Fund Premium Class (FZEXX). Unless they're tax exempt, money market fund income is subject to federal, state and local taxes.

Search resuls for: "New Bond"

25 mentions found