Debut sales of junk bonds from companies like Michaels Stores and Square are on a record-breaking run
Investors in search of better fixed-income returns are flocking to buy the lowest-rated junk debt from companies new to the high-yield market.
Debut sales of junk bonds from companies including Michaels Stores Inc. and Square Inc. are on pace to set a 16-year record, with over $68 billion of debt sold as of Aug. 17, according to S&P Global Market Intelligence’s LCD. The firm has been tracking the data since 2005. John McClain, portfolio manager at Brandywine Global, says that investors can find opportunities for excess returns in debut bond issues because they force the market to do its homework on a company’s potential earnings. His funds have added to holdings of bonds from first-time issuers this year.
“We’ve seen record issuance [in high yield], so a lot of companies can slip through the cracks,” he said. “We think that’s an inefficiency investors should be exploiting.”overall. U.S. companies had sold over $316 billion of junk bonds through the end of July, around 32% ahead of last year’s record-breaking totals.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
Amazon Reportedly Outsold Walmart Last Year For The First TimeAmazon’s online presence and speedy delivery helped it during the pandemic.
Consulte Mais informação »
Los Angeles Tops 4,000 New Covid Cases For The First Time Since JanuaryOn Wednesday, Los Angeles County reported more than 4,000 new daily Covid cases for the first time since January. The Los Angeles County Department of Public Health confirmed 4,046 new cases of Cov…
Consulte Mais informação »
International Emmys’ News & Current Affairs Nominations Set; Kenya In Running For First TimeThe nominations are out for the International Emmys’ News and Current Affairs categories. The countries scoring noms today are The UK, Brazil, Qatar, Russia, The Netherlands and — for t…
Consulte Mais informação »
Rain fell at the normally snowy summit of Greenland for the first time on recordFor the first time on record, precipitation fell as rain — not snow — at the summit of Greenland, roughly two miles above sea level
Consulte Mais informação »
Colombia extradites ELN rebel fighters to U.S. for first timeFor the first time, Colombia on Thursday extradited two alleged members of the National Liberation Army (ELN) who are accused by a U.S. federal court of drug trafficking.
Consulte Mais informação »
It rained for the first time at the summit of Greenland's ice sheetRain fell for several hours at the highest point on the Greenland ice sheet last week — the first rainfall event in recorded history at a location that rarely creeps above freezing temperatures.
Consulte Mais informação »