Entries filed under 'Corporate Bonds'

    Corporate Bonds: A Stampede of Elephant-Sized Deals Hits the Street

    October 6, 2015 3:20 PM by Andrew H. O'Brien, CFA

    What lies behind the surge, however, has more to do with boosting stock prices than funding organic growth.

    It wasn’t too long ago that a multibillion-dollar corporate bond issue created a lot of excitement on Wall Street, but now transactions of $10 billion or more (so-called “jumbo” or “mega” bond deals) are commonplace. The numbers are eye-popping. But investors are best advised to look beyond the data and understand what’s really going on.

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    Bond Funds: Solid Answers to Key Liquidity Questions

    September 24, 2015 11:55 AM by Andrew H. O'Brien, CFA

    A recent press report suggested that 10 large corporate-bond funds' holdings of illiquid securities exceeded regulatory maximums. Here's what the article gets wrong.

    A Wall Street Journal article published Tuesday, September 22, 2015, analyzed the liquidity of corporate bond holdings of a number of large fixed-income mutual funds as part of the newspaper’s series on bond mutual funds and its concerns about bond market liquidity. 

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    Corporate Bonds: Behind the Boom in Non-Dollar Issuance

    June 23, 2015 10:15 AM by Andrew H. O'Brien, CFA

    U.S. companies are attracting new investors and locking in low borrowing costs outside the United States.

    If there were any doubts remaining as to the globalization of finance, recent news of Apple’s first Japanese yen-denominated bond issue should have converted doubters into believers. But for those who may not have been paying close attention, this neither was the first Apple bond issue denominated in non-U.S. dollars nor is Apple the first U.S. company to issue bonds in other than its home currency. 

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    Bonds: Is More Transparency Better?

    June 17, 2015 12:45 PM by Andrew H. O'Brien, CFA

    The regulatory push for transparency will soon reach nearly every corner of the U.S. bond market. But does the benefit outweigh the costs? 

    TRACE is an acronym well known in the bond markets. It stands for Trade Reporting and Compliance Engine, and it was launched in 2002 by the National Association of Securities Dealers (NASD) to increase the transparency of the corporate bond market. (In 2007 NASD was renamed the Financial Industry Regulatory Authority or FINRA, as it is known today.)

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    Fixed Income: Opportunity amid Volatility

    October 16, 2014 2:59 PM by Zane Brown

    Amid the current market turmoil, where should bond investors focus?

    Risk is off and volatility is back. Financial markets have been whipsawed this past week by fears of a slowing in global economic growth. While equities have suffered sizable losses, the Treasury market has benefited as investors seek the perceived safety of U.S. government debt. 

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