The price of WeWork's U.S. junk bond fell to an all-time low on Tuesday, last trading at 78 cents on the dollar, as the company weighed financing options including a package that may include at least $2 billion of unsecured notes with a 15% coupon. The office sharing company's May 2025 7.875% junk bond worth $702 million was last down 12.5%, down 25.7% from a record high in mid-August.
There are now 1,100 global stocks that are providing dividend yields above the average yield of global government bonds. Investors have long been told that the ideal portfolio should carry 60% of its holdings in equities and 40% in bonds, a mix that provides greater exposure to historically superior stock returns, while also granting the diversification benefits and lower risk of fixed-income investments. But in a research note published by Bank of America Securities, titled "...
* Upbeat start to U.S. earnings season lifts Wall Street. * Oil prices drop as trade war jitters cloud growth outlook. * * * * Oil prices steady on trade war jitters but OPEC hints supply restraint. * * World FX rates in 2019 http://tmsnrt.rs/2egbfVh. * Data shows China factory gate prices decline accelerate Sentiment still fragile due to U.S.-China trade war.
Sterling surged on Tuesday to its highest level against the dollar and the euro since May while British stocks and government bond yields also rose after Bloomberg said British and EU negotiators were closing in on a draft Brexit deal.
Money markets scaled back expectations for interest rate cuts from the European Central Bank and the Bank of England on Tuesday, after news that UK and EU negotiators are nearing a draft Brexit deal.
The Canadian dollar strengthened
against its U.S. counterpart on Tuesday as U.S. stocks rose and
the IMF left its 2019 growth projection for Canada unchanged.
Sterling jumped against the dollar and the euro while British stock prices and government bond yields rose in late afternoon trading on Tuesday after a Bloomberg report that British and European Union negotiators were close to a Brexit draft deal. The pound jumped more than 1% versus the dollar to $1.2742 and by a similar margin against the euro to 86.31 pence.
U.S. Treasury yields edged
lower on Tuesday as investors pared back expectations that the
United States and China are close to reaching an agreement to
end their trade war.
Irish government bonds outperformed euro zone peers on Tuesday on hopes that Britain and the European Union will be able to reach a deal over the former's exit from the bloc at a summit this week. A senior German government official said some progress had been made in the talks but warned that London still had further to move in the EU's direction to secure a deal.
Louis Fed president makes case for more interest rate cuts. There are a lot of valid reasons why the inversion of the U.S. Treasury yield curve-- that is, the yield of short- term bonds being higher than that of longer-term securities-- isn't a sign of economic worries.
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