It is an exciting time for fixed income—and a terrifying one, too. Central banks are in the midst of the most dramatic tightening of monetary policy in a generation, which has helped push yields on so...
Tag: Debt
Short U.S. stocks and short-term Treasurys until Halloween, Bank of America strategist says
Short U.S. stocks as well as short-term bonds until Halloween, a Bank of America strategist advises. Michael Hartnett, chief investment strategist at Bank of America Securities, said he’s a tactical b...
A huge number of ‘Zombie’ companies are drowning in debt. This CEO sees a reckoning as interest rates soar
Zombies are real. Well, at least “zombie companies” are real. Loosely defined as economically unviable firms that need to borrow to stay alive, an era of cheap money and high-risk investing has fueled...
Carnival Debt Yields in the Teens After Big Earnings Miss
Cruise line bonds have taken a fresh hit after Carnival’s weaker-than-expected financial update for its latest quarter, and yields on many debt issues now are in teens. Carnival (ticker: CCL) shares ...
Forget the 4% retirement spending rule. How do you feel about 1.9%?
Retirees and near-retirees have known for some time that the famed 4% rule needs to be revised downwards. But by how much? Would you believe 1.9%? That’s the conclusion of new research that replicates...
I Made an NFT Collection to Represent My Student Loan Debt
I ruminated on this project for months before starting and I quickly realized that not only is the stigma behind having student loan debt building on a principal shame of not having enough money to su...
Why crypto firms are moving to offer loans to bitcoin miners
If the past week is any indication, efforts are ramping up to offer loan capital to bitcoin miners as they contend with a difficult business climate. Icebreaker Finance, which announced a $300 million...
‘Painfully slow capitulation’: Why investors keep getting inflation wrong
A brutal third quarter in financial markets came to a close on Friday and one thing is overwhelmingly clear: Inflation is the single most important factor driving asset valuations right now and yet fe...
This is the time when ‘accidents’ like Enron have happened — this JPMorgan quant says yields have peaked and prefers bonds over stocks
The old expression is when the tide goes out, you get to see who’s swimming naked. In financial markets, the tide is going out when central banks are raising interest rates and growth is slowing. That...
‘We are in deep trouble’: Billionaire investor Druckenmiller believes Fed’s monetary tightening will push the economy into recession in 2023
Billionaire investor Stanley Druckenmiller sees a “hard landing” for the U.S. economy by the end of 2023 as the Federal Reserve’s aggressive monetary tightening will result in a recession. “I will be...
Real Estate Debt Becoming An Attractive Investment As Stocks Fall And Mortgage Rates Climb
The housing market and all of the uncertainty plaguing it is undoubtedly on the minds of prospective buyers, sellers and investors. As the Federal Reserve continues to try to curb inflation through th...
Debt cancellation got all the attention, but this Biden proposal could impact student-loan borrowers more, critics and advocates say
When President Joe Biden announced in August that his administration planned to cancel $10,000 in federal student debt for most borrowers, Allison Daurio felt some relief. Under the White House’s deb...
Banks Dealt Fresh Blow With Collapse of Brightspeed Debt Sale
(Bloomberg) — For the second time in two weeks, Wall Street bankers suffered a painful reminder of how quickly risk appetite is evaporating from credit markets as a $3.9 billion debt sale for a ...
Privately Held Student Loans No Longer Qualify for Biden Debt Relief Plan
(Bloomberg) — The Biden administration on Thursday reversed course on part of its student debt forgiveness plan and will no longer forgive privately held federal student loans, according to an u...
How to Build a Bond Ladder for Income
While stock prices typically rise and fall from year to year, bond prices have historically been quite stable. Yet 2022 is shaping up to be a year of infamy for fixed income. Since bond prices move in...
The U.K. Economy Is Having a Meltdown. Why It’s Going to Get Worse.
The recent sharp drop in the British pound and in U.K. government bonds means traders are at panic stations, with repercussions being felt across the globe. The spectacular drops in the past month wer...
U.K. could trigger a global crisis as pound collapses while bond yields soar, Larry Summers says
““A currency crisis in a reserve currency could well have global consequences. I am surprised that we have heard nothing from the IMF.”” — Larry Summers, former U.S. Treasury secretary Former U.S. Tre...
Why TIPS might be a smart place to park some money right now
Inflation is running at 8% or higher, depending on how you count it (and who’s counting). The Federal Reserve is clearly panicking. And the markets are clearly panicking too. So at this point, Uncle S...
Biden’s Student Debt Forgiveness Plan Will Cost $400 Billion, CBO Finds
Topline President Joe Biden’s plan to forgive student loan debt for many borrowers will cost roughly $400 billion, according to a Congressional Budget Office estimate released on Monday, rekindling a ...
Morgan Stanley says investors should consider this port in the market storm right now
The great British pound selloff, credited with exacerbating a global rout for markets last week, looks set to continue wreaking some havoc on Monday. Economic woes in Old Blighty are adding to the mar...
Why the ‘sell Rosh Hashanah, buy Yom Kippur’ trade is a tough call as stock-market selloff deepens
It might seem arbitrary to take investing advice from old market adages, but there is one market strategy commonly mentioned ahead of the Jewish holidays – “Sell Rosh Hashanah, Buy Yom Kippur.” This ...
How to get a guaranteed return of 1.3% per year above inflation
TIPS in recent months have become an increasingly attractive option for the fixed-income portion of your retirement portfolio. I’m referring, of course, to the Treasury’s Inflation-Protected Securitie...
Stocks crashing? No, but here’s why this bear market feels so painful — and what you can do about it.
Hashtags about a stock-market crash may be trending on Twitter, but the selloff that has sent U.S. equities into a bear market has been relatively orderly, say market professionals. But it’s likely to...
Cruise lines’ stocks fall after Fed rate hike raises concerns about debt, recession
People come out to watch the new Carnival Cruise Line ship Mardi Gras as it departs on its maiden voyage, a seven-day cruise to the Caribbean from Port Canaveral, Florida on July 31, 2021. Paul Hennes...
A historic global bond-market crash threatens the liquidation of world’s most crowded trades, says BofA
Global government-bond markets are stuck in what BofA Securities strategists are calling one of their greatest bear markets ever — which, in turn, is threatening the ease with which investors will be ...
Turn its debt into a new cryptocurrency
Since bankrupt crypto lender Celsius froze withdrawals in June, customers’ funds have been in limbo. Now, leaked audio shared with CNBC reveals a preliminary plan to compensate them. The company...
If you’re selling stocks because the Fed is hiking interest rates, you may be suffering from ‘inflation illusion’
Forget everything you think you know about the relationship between interest rates and the stock market. Take the notion that higher interest rates are bad for the stock market, which is almost univer...
‘The housing market may have to go through a correction’: Mortgage rates hit 6.29%, Freddie Mac says
The numbers: U.S. mortgage rates continue to climb, adding hundreds of dollars in costs to potential homeowners. The increase in mortgage rates followed the Federal Reserve hiking interest rates again...
Dividend yields on preferred stocks have soared. This is how to pick the best ones for your portfolio.
This year nearly every type of security has declined — bad news if you look at your portfolio’s value each day and have difficulty sleeping at night. On the other hand, it’s good news if you’re lookin...