Hello uptiers, trapdoors, dropdowns, and double dips
And changing its nature in the process
Loss of investment-grade status for utility’s safer debt could increase regulatory scrutiny and flood high yield market with bonds
Gap between borrowing costs of most and least risky debt widens as traders fret over impact of high US interest rates
Borrowers benefit from equivalent of two Fed rate cuts as demand for debt booms
American companies issue €30bn in euro-denominated bonds as investor demand for European corporate debt grows
Dozens of sales raise tens of billions of dollars this week amid feverish investor demand
Tape, measured
Low-rated sovereigns are borrowing again, but restructurings are still . . . weird
Demand to lock in yields helps push spreads on high-yield bonds close to their tightest level since 2007
Pimco’s inflows are already almost equal to its 2023 total
European investors opt for junk bond ETFs in home markets over US for first time since 2019
Having failed to make it, more firms may try to fake it
Debt with rock-bottom triple C ratings has missed out on a broader rally
RIP bond kings
Sponsors under pressure from investors to return cash but are finding it harder to offload companies
Convertible debt worth $48bn was issued last year in rare bright spot for corporate fundraising
Credit spread with US triple C issuers is highest since 2009
‘Risk-on’ wave of cash brings overall ETF monthly flows to the second-highest ever recorded
Bond issuance by US and European firms surges as market becomes more confident of interest rate cuts next year
Domestic buyers attracted by offshore bonds’ high yields and belief in implicit guarantee by Beijing
Once again, optimism is everywhere
Inflows into corporate bond funds on track for highest total since July 2020
Easy money has not bred the undead
Companies, including Carvana, are turning to form of restructuring to preserve cash
