Markets News 

Italian bonds cheer reports on end of budget deficit debate

“Talking about Italy’s debt problems” reports forexlive.com. With the news above, the yields spread between Italian and German 10-year bonds have also tightened to 259 bps on the day.All this of course comes after the reports of the European Commission said to have accepted Conte’s proposal of a deficit target of 2.04% next year.While all this budget news may sound positive on the front of it, let’s not forget that at the end of the day, a target is after all just a ‘target’. Source: forexlive.com Share This:

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Futures Markets News Oil Regulators 

Asia braces for Fed as plunge in oil boosts bonds

“So far, the futures market is sticking with a two-in-three chance of a rate increase on Wednesday” writes Midwest Communications Inc for 95kqds.com. “Despite recent market volatility we think that it is still more likely than not that the Fed will raise rates,” said ANZ senior economist Tom Kenny.Investors rushed into bonds, with the largest ever one-month rotation into fixed-income assets, while cutting equities. Source: 95kqds.com Share This:

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Markets News Stocks 

Investors just poured a record amount into bonds as ‘extreme bearishness’ sends them fleeing from stocks

“Beyond the prospect of slowing economic growth, investors are being troubled by a handful of other notable headwinds” writes Joe Ciolli for businessinsider.com. Investors fleeing the stock market are seeking shelter in bonds to an unprecedented degree.Those investors reduced holdings in stocks by 15 percentage points over the same period, according to the data.On a global basis, a record $39 billion was yanked from stocks worldwide over the same period.These developments have pushed the market close to “extreme bearishness,” strategists at BAML wrote in a client note. Source: businessinsider.com Share This:

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Markets News 

Storm ahead? Here’s how to prepare for a financial crisis

“This week the IMF warned that not only are the storm clouds of the next global financial crisis gathering, but also that the world financial system is unprepared for another downturn” writes Patrick Collinson for theguardian.com. Every 10 years or so a financial crisis hits global markets – and it’s 10 years since the last one.If you are middle-aged, your pension fund is probably about 60% in shares and 35%-40% in bonds.Many investment managers grimly warn about overvaluations in financial markets. “The US equity market has never been more expensive…

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Markets News 

The debt threat: Business debt, and worries about it, are up

“But with interest rates rising and U.S. economic growth expected to slow next year, worries are building from Washington to Wall Street that corporate debt is approaching potentially dangerous levels” writes The Associated Press for seattletimes.com. Even the chairman of the Federal Reserve has taken notice of the rise in corporate debt.U.S. corporate debt has grown by nearly two-thirds since 2008 to more than $9 trillion and, along with government debt, has ballooned much faster than other parts of the bond market.To take advantage, they’re increasingly “shorting” corporate bonds, which…

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Markets News Stocks 

As stocks, bonds and commodities flail, technician says one area is safe

“If you look at indexes like the S&P dividend aristocrats including dividend yields, it’s almost about flat for the year,” Gibbs said Monday on “Trading Nation.”” writes Hannelore Foerster for cnbc.com. Erin Gibbs, portfolio manager at S&P Global Market Intelligence, said she favors high-dividend yield stocks to protect against volatility. Source: cnbc.com Share This:

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Markets News Stocks 

Tesla is reportedly planning to pay off its next chunk of convertible debt in an odd way

“Tesla has $920 million worth of debt coming due in March, and it’s reportedly chosen to pay holders of the convertible notes in an unusual fashion” writes Graham Rapier for businessinsider.com. If the stock price is above, notes are generally converted into equity shares.While the March tranche is the most immediately due, it’s not the largest of Tesla’s outstanding debt.Tesla’s stock closed at $363 on Thursday, roughly 0.8% above the conversion price of the bonds. Source: businessinsider.com Share This:

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Markets News Regulators 

BlackRock’s Rieder buying longer-term bonds as Fed pause seems likely

“Over the past three weeks, Rieder has been buying longer-term bonds, particularly Treasuries coming due in 5 years, but also those due as far in the future as 30 years” reports businessinsider.com. Earlier this year, Rieder had been selling long bonds, citing uncertainty around Fed policy.The Fed is also shrinking its cache of bonds bought after the financial crisis to spur lending and investment. Source: businessinsider.com Share This:

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Markets News Stocks 

Thomas Cook shares climb 45 percent but bonds hit record low

“But Thomas Cook’s bonds hit a record low after credit rating agency Moody’s cut its rating on the company’s debt to B2 from B1” reports businessinsider.com. More positively, regulatory filings showed that Thomas Cook’s chairman Frank Meysman spent 80,000 pounds ($102,000) on buying the company’s stock on Tuesday.LONDON (Reuters) – Thomas Cook’s shares climbed 45 percent on hopes that it would not need to issue new equity, although its bond prices extended their losses to record lows on Wednesday, amid deepening worries about the UK travel group’s debt. Source: businessinsider.com Share…

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Markets News 

Post-bankruptcy Detroit returns to yield-hungry muni bond market

“Daniel Berger, MMD’s senior market strategist, said investors “were willing to give (Detroit) a fresh start, but at a high-yield price.”” writes Midwest Communications Inc for 95kqds.com. CHICAGO (Reuters) – Detroit on Tuesday sold its first standalone bonds since exiting bankruptcy four years ago to U.S. municipal market investors, who snapped up the debt albeit at hefty yields.Detroit tapped voter-approved authority that dates back to 2004 and 2009 for the bonds, which will fund capital projects. Source: 95kqds.com Share This:

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