Bonds

Treasury yields rose a second day amid increasing conviction that the Federal Reserve will raise rates at least three times beginning in May.

Money managers are hiking bets on the great inflation trade of 2021, as the biggest risk to price stability in more than a decade rocks corporate boardrooms and Wall Street trading floors.

Government and corporate bonds globally have already lost 4.4% this year, the biggest decline for any similar period since 2005, according to a Bloomberg index.

Blowout results from the big U.S. banks may spur even more bond issuance from the financial sector, with borrowing costs still attractive even as some market rates rise. The bond deal comes as risk premiums in corporate debt remain low.

Offsetting the weak job-creation number were an upward revision to August payrolls, a bigger-than-expected drop in unemployment and a faster pace of wage growth.

While a host of factors are at play behind the bond-stock relationship, one thing that links them together is the perception of growth.

The bond-market influencer has for months urged the Fed to reduce its asset purchases before inflation runs rampant and batters financial markets.

The bonds are federally taxable but exempt from California income taxes. Jefferies and Citigroup act as joint senior managers.

UBS Group AG’s exposure to stricken property developer China Evergrande Group is “immaterial” and limited to the execution of collateral calls on margin loans, Chief Executive Officer Ralph Hamers said Thursday.

The threat of crippling price increases accompanied by slow growth challenges the belief keeping global markets aloft: that price pressures are temporary along a Goldilocks-like growth trajectory.

More opportunistic borrowers may come as investors continue to pour money into U.S. leveraged loan funds, which have seen the longest positive streak since 19 weeks between February and June 2018.

Strong growth, continued low-cost borrowing and an oil rally are all contributing to a friendly backdrop for high-yield issuance.

CLO new-issue month-to-date volume is at $8.9 billion, keeping pace with a record $15.8 billion total from February

Demand for the debt has outweighed supply by so much that some money managers are even calling companies to press them to borrow instead of waiting for deals to come their way.

A New York-state proposal to shift trillions of dollars in securities contracts from Libor- to SOFR-based benchmarks is gathering dust. That worries bankers and investors on on how to proceed with the next steps toward a replacement rate as Libor's post-2021 expiration grows nearer.

The Federal Reserve's extraordinary effort to keep credit flowing to companies during the COVID-19 pandemic is also shunting money to banks' bottom lines.

The company is looking to sell $1.1 billion of junk bonds secured by marquee properties including its State Street store in Chicago. The retailer is also setting up a line of credit worth about $3 billion, backed by its unsold goods

Hedge funds are making headlines daily with plans to capitalize on this rapid shift in the outlook, contending the market presents a once-in-a-lifetime opportunity

The Federal Reserve committed Monday to conducting more asset purchases of Treasury securities and mortgage-backed securities and announced $300 billion in new financing for credit facilities.

As the 2020s begin, perhaps it’s best to borrow a page from the Fed’s 2019 playbook: Take your best shot at forecasting the road ahead, but don’t hesitate to react to important new information.