Tag Archives: investment grade

A ‘bond massacre’ before the Fed hikes interest rates

Capital flows showed a “bond massacre” is underway, with the largest weekly outflow from bond funds in 18 months, according to Bank of America Merrill Lynch.

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Money pours into risky assets before ECB QE

Money has been rushing into risky assets shortly before the European Central Bank starts its quantitative easing program, data from the latest capital flows surveys showed.

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Bearish sentiment signals equities are still a ‘buy’

Despite warnings in some quarters about an imminent stock market crash, equities and other risky assets still have plenty of room to run, according to a recent analysis of movements of capital.

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Deflation now, inflation later down the road?

By Antonia Oprita

Talk of inflation may seem absurd right now, when everybody worries about deflation. But is this actually the calm before the storm?

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Negative yields for corporate bonds ahead

Fancy paying for the privilege of lending money to a company? You will soon have the chance to do so. In fact, some investors already saw negative yields for corporate bonds.

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‘Equity vigilantes’ may be pushing the S&P 500 lower

“Equity vigilantes” may be trying to push the S&P 500 lower in the coming weeks just to force the Federal Reserve to stay dovish, analysts at Bank of America Merrill Lynch have warned in their most recent report on capital flows.

The data shows that money left US equities for the fourth straight week, with outflows totalling $3.3 billion last week.

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The weak euro, the strong dollar and the new global crisis

By Antonia Oprita

With elections in Greece stealing the show, investors would do well to keep an eye on the weakening euro and the strengthening dollar.

The re-balancing of the exchange rates of the world’s two main reserve currencies could have painful consequences for many countries and markets.

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Flight to safety continues in the first week of 2015

This year started like 2014 finished when it comes to capital flows. Money flew out of risky assets such as high-yield debt and equities, and into the safety of high grade – or investment-grade rated – bonds.

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Why did stock markets fall?

Tuesday’s sharp drop in global stock markets doesn’t make much sense taken in isolation. But the warning signs had been accumulating for a while.

The key question is: is this the beginning of the end of the bull market, or is it just another wobble?

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High yield bonds have the worst year since 2004

It is official: this was the worst year for high yield bonds in the past 10 years.

Outflows totalling $8.6 billion year-to-date exceed the $6.2 of outflows from high yield bonds in 2011, when the eurozone was in full swing, analysts at Bank of America Merrill Lynch noted in their weekly report.

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