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    Purnima Puri, HPS Investment Partners Governing Partner and Public Credit Strategies Portfolio ManagerSource: CNBC Finding yield in a zero-rate world is making life tough for fixed income investors, and inflation is only making the job more difficult. Purnima Puri at HPS Investment Partners is deploying three strategies to get returns for her clients as price pressures continue to mount, a situation that Federal Reserve Chairman Jerome Powell said Wednesday he is finding "frustrating." "If you've got that kind of a environment where people need to buy yield, they're kind of searching for the least negative real yield, I would argue," Puri said Wednesday during CNBC's Delivering Alpha conference. Like her co-panelist, Elizabeth Burton, chief investment officer for Hawaii's Employees' Retirement System, Puri said she is not owning U.S. Treasurys at a time when they're delivering negative real yields when accounting for inflation. Instead, she put forth three areas of fixed income she's investing in now: floating rates, specifically loans of companies with high levels of debt to income; shorter-duration high yield, and noninvestment-grade credit with high risk premia.VIDEO4:5204:52Economist Stephen Roach...
    U.S. stocks fell Tuesday, as rising bond yields and energy prices weighed on the market. The Dow Jones Industrial Average sank 650 points at the low of the day before recovering to a 569 point, or 1.6 percent, decline. The S&P 500 tumbled two percent. The Nasdaq Composite plunged 2.8 percent. The small-cap Russell 2000 index fell 2.2 percent. Ten of the 11 sectors of the S&P 500 were off, with only the energy sector ending the day in positive territory. Information Technology was the worst-performing sector, down 2.6 percent. Communications Services fell 2.5 percent, dragged down by a 3.8 percent decline in interactive media and services, the category that includes Facebook and Alphabet. The yield on 10-year Treasurys hit 1.54, the highest since June. Yields move in the opposite direction of bond prices, so a rising yield indicates a sell-off.  Brent Crude briefly topped $80 a barrel, a three year high, and was at $78.52 at four p.m. in New York. Natural gas for October delivery traded at the costliest in seven years. Bond yields have climbed after the Fed...
    Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2021.Brendan McDermid | Reuters Junk bonds aren't so junky anymore, with a strong fundamental backdrop helping to underpin what traditionally has been one of the riskiest sections of the financial markets. Yields in the $10.6 trillion space for the lowest-grade bonds in terms of quality are around historic lows after a tumultuous year that saw corporate America face down the Covid-19 pandemic and come out on the other side with balance sheets looking extraordinarily strong. Bond yields decline as prices rise; the two have an inverse relationship to each other. Most recently, the junk bond sector collectively was yielding 3.97%, according to the ICE Bank of America High-Yield index. That's up from a record low 3.89% Monday. In March 2020, during the worst of the pandemic volatility, the yield was at 9.2%. This is the first time in history that the collective yield for junk has been below the rate of inflation as measured by the consumer price index, which rose...
    VIDEO2:1702:17One fixed income executive's look at the high-yield bond marketETF Edge Are high-yield bond funds worth the risk? In a low-interest rate environment where traditionally higher-yielding investments are paying out a historically meager 3.5%, many investors and advisors are grappling with that question. One one side of the trade is industry giant Vanguard, whose global head of fixed income, John Hollyer, told CNBC's "ETF Edge" on Monday that the environment remains supportive for high-yield investments. "The fundamentals for high-yield issuers are quite good," said Hollyer, also a principal at the firm. "We have an economy that's reopening. We have very strong fiscal policy. We have very supportive monetary policy. That makes a good environment for corporate borrowers." While investors should set realistic expectations in terms of returns — somewhere in the 3.5% to 4% range — that payout should stay consistent through the near to intermediate term, Hollyer said. "Until inflation is demonstrably above 2% for an extended period like 12 months and employment has neared full employment across many different subsectors of workers, the Fed is going to hold...
    (Bloomberg) – Treasuries fell again on Friday, bringing 10- and 30-year yields to their highest level since early 2020, amid growing concern that stimulus will fuel an explosion in the US. economic growth that will activate price pressures. Inflation expectations in the next decade reached a seven-year high. Yields on the benchmark 10-year bond rose by as much as 10 basis points to 1.64% in US morning trading, a level not seen since February 2020. The 30-year rate advanced nearly 11 basis points to a session high of 2.40%, approaching a January 2020 high. Rates on all notes and bonds increased, but the largest variations were seen in long-term instruments, accelerating the yield curve. The 10-year bond rate has failed to close above 1.60% since the beginning of 2020, although it has surpassed that level during sessions several times in recent weeks. “We’re talking about a good amount of stimulus, both fiscal and monetary, going forward,” said John Fath of BTG Pactual Asset Management, referring to the $ 1.9 trillion pandemic relief bill and prospects for more. stimulus, along with...
    By Chuck Mikolajczak NEW YORK, Mar 5 (.) – U.S. Treasury yields fell back from highs reached earlier on Friday as buyers intervened after the benchmark 10-year bond hit its highest level in more year on the back of a stronger-than-anticipated employment report. * Nonfarm payrolls jumped 379,000 jobs last month after rising 166,000 in January, the Labor Department said on Friday, well above the 182,000 estimate. * The 10-year bond return gained 0.9 basis points to 1.559%. The yield rose to 1.625%, its highest level since February 13, 2020. * The employment report comes a day after Federal Reserve Chairman Jerome Powell reiterated his promise that the central bank plans to maintain its expansionary monetary policy stance, as a return to full employment this year was ” very improbable”. * Following the data, Eurodollar futures, which follow expectations of short-term interest rates in the United States in the coming years, estimated a 90% probability of a rate hike in December 2022, with 100 % of expectations of a hike in March 2023 and another hike in September 2023. *...
    California crash victims suspected of being smuggled across U.S.-Mexico border 13 dead in California SUV crash may have crossed at Mexico border gap (Bloomberg) -- GFL Environmental Inc., a waste management company whose largest shareholder is investment firm BC Partners, is considering a debut in the green bond market as the company looks to digest an acquisition spree and reduce debt costs. © Bloomberg GFL Environmental Inc. garbage trucks sit parked in Toronto, Ontario, Canada, on Thursday, Oct. 24, 2019. GFL, North America's fourth-largest waste hauler by revenue, seeks to raise as much as $2.1 billion in what would be the largest initial public offering in Canada since 2004. The Vaughan, Ontario-based company may go ahead with the transaction to finance projects such as the construction of large organics processing facilities similar to those the firm has built in British Columbia and Ottawa, Chief Executive Officer Patrick Dovigi said in an interview. Load Error “Our view is that there is going to be a couple of projects that actually qualify for that program,” said Dovigi, adding that an...
    By Chuck Mikolajczak NEW YORK, Mar 1 (.) – Benchmark U.S. Treasury yields fell for the second straight session on Monday after rising to a one-year high last week as Federal Reserve officials continued to downplay. concerns about inflation, but a round of strong economic data slowed the slide. * Richmond Federal Reserve Chairman Thomas Barkin told The Wall Street Journal that while there is “daylight on the horizon” for the US economy, he does not believe inflation will rise to problematic levels. * “The market is assimilating that the Fed is fully aware that inflation will be higher in the short term – not a surprise,” said Jim Barnes, director of fixed income at Bryn Mawr Trust in Devon, Pennsylvania. * “The fact that the market is now back in line with the Fed and the Fed’s views will limit the volatility we saw last week,” he added. * Last week, the yield on the 10-year Treasury note hit a one-year high of 1.614%, amid rising expectations of a better economic outlook, inflation concerns and a weak auction of...
    EFE Latam Videos Lasso accepts a new scrutiny “within the framework of the law” in Ecuador Quito, Feb 12 (EFE) .- The conservative Ecuadorian candidate Guillermo Lasso accepted this Friday the request of his rival, the indigenous candidate for the presidency Yaku Pérez, to carry out a new scrutiny of last Sunday’s elections within the “framework of the law “in order to make democracy transparent. “I am the first interested party that transparency prevails, above partisan and personal interests is the well-being of Ecuador,” he said in a meeting with Pérez at the headquarters of the National Electoral Council (CNE) in Quito, under the supervision of the Mission. Observation of the OAS. The decision and the scope of the recount now depends on the plenary session of the electoral body that will study the case from today and after the Government has established the budget for that purpose. “HISTORICAL DISPOSSESSION” Headed by the president of the CNE, Diana Atamaint, and her four advisers, the meeting, broadcast on television and on the Internet, was opened by Pérez alerting Ecuadorians of the...
    You should think twice before investing in high-yield (a.k.a “junk”) bonds. It’s understandable why you might be tempted to invest in such bonds. Even with the recent uptick in interest rates, U.S. Treasuries have a low yield—not enough for a fixed-income-heavy retirement portfolio to throw off much interest income. Investment-grade corporate debt yields somewhat more, but still not a lot. Junk bond indexes, in contrast, currently are yielding as much as 4%. The reason I think you should be very wary of junk bonds right now isn’t just that they are risky. They always are risky, due to their vulnerability to default if the economy turns out to be weaker than expected. Instead, the reason to be worried now is that junk bond yields are low relative to comparable Treasuries. That means that you earn little extra compensation for incurring junk bonds’ substantially higher default risk. Right now, the yield spread between junk bonds and Treasuries is 3.51%, according to the ICE BofA US High Yield Index Option-Adjusted Spread (a.k.a “high yield spread”). That’s more than 2 percentage points lower...
    VIDEO7:5807:58ETF inflows pace for a record year. What it could mean for the marketETF Edge ETFs are tracking for a record year. So far in 2020, roughly $252 billion has flown into exchange-traded funds, according to ETF.com. That's up from the $153 billion ETFs had accrued year to date by this time in 2019 and puts the industry on track to beat its annual record of $452 billion set in 2017. Some of the funds with the largest inflows this year include the Vanguard S&P 500 ETF (VOO), the SPDR Gold Trust (GLD), the iShares Investment Grade Corporate Bond ETF (LQD), the Invesco QQQ Trust (QQQ) and the iShares High Yield Corporate Bond ETF (HYG). If there's one message this trading activity is sending, it's "don't fight the Fed," Jan van Eck, CEO of Van Eck Associates, told CNBC's "ETF Edge" last week. "You'd probably be shocked to see that our biggest inflow ETF year to date is our high-yield corporate ETF, the Fallen Angel ETF, with [$]1.2 billion in inflows," van Eck said. The VanEck Vectors Fallen Angel High Yield Bond...
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