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发表于 2010-3-26 11:00 AM
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本帖最后由 Diffusion 于 2010-3-26 16:52 编辑
3/26/2010
[Price of JNK rises because of reduced supply, as companies pay down debts]
http://www.bloomberg.com/apps/ne ... LSJZQZoi0&pos=7
Record junk-bond sales sent leveraged-loan prices to an almost two-year high, causing the market to shrink by the most in its history as companies use their new issuance to repay bank debt.
U.S. firms issued $58.3 billion of high-yield, high-risk bonds this year, more than a fourfold increase from the same period last year when sales totaled $11.3 billion, according to data compiled by Bloomberg. The S&P/LSTA US Leveraged Loan 100 Index rose 0.29 cent to 90.79 cents on the dollar as of yesterday, the highest since June 30, 2008.
While bank lending to speculative-grade companies plummeted to its lowest point last year since the 2001 recession, companies are selling junk bonds at the lowest yields in 17 months. The leveraged-loan market declined to $517.3 billion this year from a peak of $594.7 billion also 17 months ago, leading investors to bid up prices of existing debt.
“We have gone from December 2008, when there were no buyers of loans, to March 2010, when there are no sellers,” said Randy Schwimmer, head of capital markets at Churchill Financial LLC in New York.
[Obamacare may also have lifted the junk bond market]
http://online.barrons.com/articl ... html?mod=BOL_hps_dc (May require subscription)
Moving facilities from the not-for-profit to the private sector puts those hospitals onto the tax rolls, a boon for those localities. For bondholders, such a transaction results in the securities being "defeased," which means the bonds are backed by a portfolio of Treasury securities. The private acquirer isn't permitted to benefit from tax-exempt financing. But if the hospital's bonds can't be redeemed early, the acquirer buys Treasuries to pay off the muni bonds. So the munis are effectively backed by Treasuries.
As a result, the hospital bonds, which were rated at the lower end of the investment-grade scale, say triple-B, or even lower in the junk range, would suddenly be lifted to gilt-edged triple-A. The biggest winners in this process are hospital bond issuers in lower-investment-grade or speculative range, Loffredo explains.
Those are one-time windfalls. More importantly, not-for-profit hospitals will benefit from a sharp reduction in their indigent-care expenses. And these institutions comprise a large portion of the lower-grade muni market.
[Signs of companies to boost spending]
http://www.bloomberg.com/apps/ne ... nTiMXKnBc&pos=7
Chief Executive Officer Carlos Brito, who flies economy class, boosted advertising spending by 20 percent to $1.4 billion in the final quarter of last year alone. That increase came at the expense of profit, with the Belgian company missing analysts’ earnings estimates by about 7 percent.
“There has never been any doubt that Brito and his team are the best cost-cutters in the industry, the question was whether they could simultaneously build brands,” said Matthew Jordan, head of research at Matrix Corporate Capital LLP in London. The increased marketing “puts AB InBev at the vanguard of the industry’s race to rebuild advertising and promotions.”
[Maybe political risk is the biggest uncertainty to the market]
http://www.bloomberg.com/apps/ne ... UvoqscqRk&pos=9
Republican Coburn Blocks Jobless Benefits Extension
Senate Republicans blocked an extension of unemployment benefits for the second time in recent weeks because the cost would be added to the government’s $1.5 trillion budget deficit.
Senator Tom Coburn, an Oklahoma Republican, yesterday prevented the chamber from passing a $9 billion measure to extend aid for a month as lawmakers prepared to leave for a two- week recess.
Lawmakers are unlikely to work out a deal by the time benefits begin expiring for some of the unemployed on April 5, said Jim Manley, a spokesman for Senate Majority Leader Harry Reid, a Nevada Democrat.
[Be aware of commercial real estate problem]
http://money.cnn.com/2010/03/26/news/economy/gdp/index.htm
Commercial real estate drags down growth
The revision in the fourth-quarter reading was due to a worse performance in the commercial real estate sector than previous estimates and businesses not rebuilding their inventory as fast as in the earlier reading.
Investment in non-residential buildings fell at an 18% annual rate in the latest reading, not the 13.9% rate of decline in the earlier estimate. Commercial real estate has now become a bigger drag on the U.S. economy than the battered housing sector, which actually added 0.1 percentage point of growth in the most recent reading.
While inventories were the major driver of growth in the report, the final reivision said the change in inventories contributed by 0.1 percentage points less to growth than the previous estimate. |
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狗仔卡
发表于 2010-4-5 11:20 AM
发表于 2010-4-3 10:51 PM
