Investments

Baby Boomers' annuities purchases continue to fuel banks' lending to collateralized loan obligations, asset-backed securities and special purpose entities.

Heading into the Thanksgiving holiday-shortened week, the benchmark Bloomberg Treasuries index is on track for a small gain in November after rising in eight of the prior 10 months.

The moves come despite Fed officials including Michael Barr voicing caution on lowering borrowing costs again in December given inflation is still above target.

Dislocation funds seek gains by snapping up beat-up assets of a company whose debt prices have slumped amid market turmoil or because of industry challenges.

The securities will mainly hold dollar-denominated floating-rate loans made to US companies. The unit aims to launch the fund in January.

Bessent spoke a week after Democrats won several key elections by zeroing in concerns over the cost of living, including housing, groceries, utilities and health care. Trump himself has rebuffed such concerns.

With borrowing costs near multi-year lows, median equity distributions for the securities reached an annualized rate of 12.1%, the lowest since 2020.

Investors have turned to private readings such as the Challenger, Gray & Christmas Inc. report showing companies announced the most job cuts for any October in over 20 years.

Previously, Kim was a managing director in J.P. Morgan Chase & Co.'s strategic investments group, where she managed a diverse portfolio of fintech investments.

Longer-dated notes led the decline, which was initially triggered by ADP Research data showing employment at US companies increased by more than forecast in October.

With debt offices slashing sales of longer-maturity debt, the recent drop in 30-year bond yields is likely to run further.

Yields on 10-year notes rose two basis points to 3.99% after falling the previous two sessions, while monetary policy-sensitive two-year notes held steady around 3.49% Wednesday morning.

Yields on 10-year benchmark US government bonds rose as much as four basis points to 4.04%, the highest in more than a week, after negotiators from the world's two biggest economies said they'd struck a series of agreements on issues.

The consumer price index for September — delayed by the federal government shutdown — showed core prices rose 0.2% on a monthly basis, less than the 0.3% expected.

Traders are shifting their focus to Friday's release of the consumer price index, the first real glimpse on the state of the economy since the start of the US government shutdown.

While Anthelion's First Brands exposure is dwarfed by other creditors, the firm's investment speaks to how pervasive the company's debt became across Wall Street before its collapse.

Enpal and M&G's move comes at a complex moment for securitizations backed by energy infrastructure and home efficiency equipment.

Last week, JPMorgan CEO Jamie Dimon raised the alarm over certain corners of the credit markets might see outsized losses if the economy sours.

Dollar bonds, meanwhile, reversed an earlier jump. Notes maturing in 2035 were down by almost 0.1 cent on the dollar, trading at 57 cents.

The department has been increasing the supply of bills — Treasury securities that mature in a year or less — in a way that means the federal government needs to carry a larger checking-account balance.