Nearly 3.3 million Initial Jobless Claims; Tata Motors Faces Downgrade; Mexico Downgraded
Despite a record shattering 3.283 million Initial Jobless Claims yesterday, the stock markets continued to rally for the third consecutive day on expectations of the $2tn stimulus package getting approved today. Although still down 22% since its peak in February, the...
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SoftBank Downgraded; Ford Becomes Junk
The US stock market saw its first consecutive daily gain after more than a month. This syncs up well with the first new bond issue in Asia that has also come after a month. Markets are upbeat as the US Congress closes in for a fiscal stimulus plan to alleviate the...
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DJIA Rallies 11%, Dollar Halts Rally, Bond Prices Take A Breather
The recently announced Fed Stimulus seems to have given markets some comfort as Monday saw a huge rally in the US. Investor sentiment remains upbeat on hopes that the US senate will pass the $2 trillion stimulus bill, which will boost the world’s largest economy even...
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Fed to Buy Bonds from the Secondary Market
Financial markets are rallying this morning after the US Federal Reserve announced new measures, implying unlimited quantitative easing to support the flow of credit to households and businesses. Treasuries had a choppy session ending the day mostly unchanged. This...
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Record Bond Fund Withdrawals, Garuda CEO says “Won’t Default”
As more countries lockdown to fight the spread of the virus, policy makers scramble to try and ward off what may be a deep global recession. E-mini S&P futures fell by 5% this morning to be limit down giving a taste of the pain to come. Investors who have used...
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Adani Abott Point Downgraded To Junk
A time it was, and what a time it was, it was A time of innocence A time of confidences (Bookends theme, Simon & Garfunkel) No Confidence has been instilled. The last few weeks have seen central banks cut rates, announce buy-backs, fiscal stimulus, helicopter...
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Perpetual Bonds – Impact of Call Dates and Resets on Prices
Stocks of many banks have taken a major hit in the last month as Central Banks cut interest rates to reduce the economic impact of the ongoing pandemic. The table below shows how bank stocks and one of their worst performing Contingent Convertible (CoCos) have fared...
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US Treasuries Sell-Off even as Stocks continue to fall; Airline Sector First To Be Hit By Coronavirus
Old and wise traders have always whelped young traders with a final mantra, when everything is falling, only one thing goes up, US treasuries. That did not happen yesterday... US Treasuries Sell-Off even as Stocks continue to fall Markets saw a rare day...
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CoCos Dive Again; Softbank & WeWork Bond Yields Spike
Asian markets struggled on Wednesday despite stimulus spending plans announced by various governments as the threat from a global recession loomed. S&P Global has forecast a global recession this year and their economists estimate world GDP growth in 2020 will be...
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