In this week's edition of the Corporate Bond Wrap: The arb has swung in favour of euros for #US #investment grade corporates, sparking some hope that the Reverse Yankee market might attract more issuers than usual once the market reopens fully at the end of the month. Euros are usually 9bp wider than dollars after the basis swap for the same issuer, but the hullabaloo in the US at the start of August has shifted the balance, and now euros are pricing through dollars. Even if US companies do not want to take advantage of this temporary state of affairs, there is a chance that euros could be preferable to dollars next year. If Kamala Harris becomes US president in November, her stance on international trade is tipped to be beneficial to #euro credit spreads – and detrimental to #dollar spreads, while the opposite is true if Donald Trump wins the top job. https://lnkd.in/eW-nKvYz In the US, drugmaker Eli Lilly and Company printed a $13.3bn in a week heavily front loaded because of the US CPI data drop. This August is one of the busiest summers ever, with $62.7bn of supply by Thursday, well up on the $43bn sold this time last year. https://lnkd.in/eYZJubC2 #corporatebonds
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💥 Interesting update from today's budget. Anything to get some firepower back into the UK markets! 🤔 Although I do wonder whether this "British ISA" will indeed lead to an increased allocation to UK equities across investors' portfolios? 🌍 Surely investors will just reduce their exposure to UK investments accordingly in their existing Stocks and Shares ISA(.....or shall we just refer to it as their "International ISA" from now on 😂) !? Capital at risk
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How to lower equity risk in UK equities with minimum variance strategy. A must-read for investors who want to reduce volatility and enhance returns. https://lseg.group/4buUq1K #MinimumVariance #UKEquities #RiskManagement #equities #indexes
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Agree with Tom: Fundamentals are for all intents and purposes untradeable. Even if you could predict them accurately, it’s impossible to know how markets will react to any given situation. Better to follow the Trend and follow clear rules on positioning, entries, and exits!
Owner at enjoytheride.world LLC, not looking to expand my business since I'm really enjoying retirement!
Why I don't use fundamentals or news to trade: In the last few weeks, we've seen an attempt on the life of the leading candidate for President, inconsistencies in testimonies before Congress on the shooting, a coup of the existing President without a 25th amendment vote, a potential conflict turning into a something worse in the Middle East, FED holding where they are, riots in the UK, a crisis over the election fraud in Venezuela (have I missed anything?) and stocks stay in the uptrend after having been overbought for weeks. Lots of stuff happening out there that could trigger reversals. I'm enjoying the upward move, but there are so many worrisome things on the horizon, I recommend making sure you have a plan in place to deal with the downside should things start going the other direction. In the meanwhile, enjoy the ride! https://lnkd.in/gAuWZuRd
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What are we reading today at Kantox? 📚 A Bloomberg News article on FX hedging ahead of US 🇺🇸 elections (*). We can only expect more material on this topic in coming weeks. Here are some of my takeaways: 1.- Hedging appetite. A survey of 1,000 US finance executives by U.S. Bancorp Investments, Inc. shows that interest in risk mitigation is growing: 60% say their appetite for FX hedging has increased, while just 15% say it has decreased, compared to 6 months ago. 2.- Hedge ratios. According to Nicolas Eguiarte at Banco BASE in Monterrey, Mexico 🇲🇽 , nearshoring clients are increasing hedge ratios to 70%-80%, up from around 50%-60% [AM: see Currency Pulse #28 on nearshoring and the USD-MXN rate] 3.- Value dates. Corporates "are extending contracts for longer than the usual three-month periods through the first quarter of next year to lock in a peso rate below 20 per dollar", adds Mr Eguiarte. [AM: many Mexican exporters to the US are considering layered FX hedging programs] 4.- Tariffs. Also in Mexico, ASICS CFO Koji Hayashi, who is hedging the company's exposure to JPY, EUR, AUD and CNY, comments: "The tariffs in the US have a significant impact on trade" [AM: this multi-currency world is really something to behold] (*) Carter Johnson, Michael O'Boyle & Eddy Duan: "Firms add to FX hedges as volatility jumps before election", Bloomberg News, October 15, 2024
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Watch our Head of Systematic Fixed Income Paul Benson argue that with bond yields seemingly nearing the top of the rate cycle and economic growth potentially moderating, high yield corporate bonds could be more attractive for your risk asset allocations than equities: https://bit.ly/49wUdtf
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With spreads tightening from 170bps in March 2023 to less than 110bps last week, investment grade bonds have shown continued strength so far this year. This has been driven by significant demand/flows for both US dollar and euro markets. Read more in our #FixedIncome round-up: https://bit.ly/3SnY7xv For UK professional investors only.
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Canadian markets advanced 3.40% with all sectors but communication services solidly in the black. A notable outlier is the materials sector that returned 6.86% for the week, outpacing all other sectors. Visit our website to read the latest market news. https://lnkd.in/euuimABS #calgary #yyc #investing #marketwatch
Equity markets advance amid strong economic data
hudsonharalsonfinancial.ca
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Weekly Review of the USA Equity Trading Markets: 2/18/2024 We saw some actions in the week that opens the possibility of pull back in the second half of February. We had a potent reversal on 2/12 but it hasn't done yet. The reversal was followed by a noticeable attempt to get canceled. On Friday the bearishness was renewed with red WRB. This price action transformed the Minor support to a major support at 4917 of S&P. Thus, once this major support is broken the pull back is here. It could break and move up (does not close under it. This will make the bounce more potent) Or if it close under it we are most likely going to see some bearish move. When you do not know where we are going, take half of your money :-) Good luck
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BOE's Pill suggests a potential summer rate cut in the new dovish signal. The chief economist notes 'capped' price pressures and deems it 'not unreasonable' for MPC to consider cutting soon #BOE #InterestRates #EconomicPolicy #GeneralElectionNow #investment #StocksToBuy #Funds #finance #stockmarket #Paytm #mutualfunds #investment #Portfolio #PortfolioDay #job #jobopportunity #mnc #mnccompany #mncjobs
