The Federal Reserve will lend $2.3 trillion to support the economy, including loans to businesses and backstops for corporate borrowing. Even with that much money to spend, the Fed won’t touch some formerly hot areas of the markets.
Investors flocked to U.S. government bonds as a seizure in oil markets sparked fresh jitters and a drive into safe-haven assets.
Three of the largest groups of Argentine bondholders rejected a proposal from the South American nation to restructure tens of billions of dollars in foreign debt, raising the likelihood that the country enter into default as early as next month.
U.S. government bond yields traded near the bottom of their recent range despite another rally in stocks, underscoring the two markets’ growing divide over the economic outlook.
Hints of stress in China’s asset-backed securities market are a warning sign for the U.S. and other countries hit by coronavirus shutdowns.
Saudi Arabia is expected to raise around $7 billion via a dollar-denominated bond sale on Wednesday, joining other oil-exporting Persian Gulf states that tapped the debt markets to plug funding shortfalls.
Emerging markets have rushed to tap a flood of easy money from investors in recent years. That is likely to put bondholders at the forefront of negotiations in coming weeks as debt-laden governments seek relief.
Italian government-bond yields climbed after eurozone finance ministers decided against sharing coronavirus-related debt burdens among the currency bloc’s members.
The 30-year Treasury yield settled at 1.392%, its highest close since March 26.
Investors snapped up the debt of car makers, oil drillers and other wounded companies after the Federal Reserve said it would lend trillions more to support the U.S. economy.
Reviving the market for bonds sold by state and local governments is shaping up as one of the stiffest tests in the Federal Reserve’s campaign to restore financial normalcy.
Questions arose about the eurozone’s willingness to support Italy through the coronavirus crisis after EU finance ministers failed to agree on a collective response.
Switzerland’s bond yields have shot higher than those of Germany for the first time in years, causing the financial haven to lose its long-held position as the economy with the world’s lowest borrowing costs.
Investors are willing to tie up their money even in emerging-market debt issued by a country where credit concerns have shot higher and the currency has tumbled.
China is edging toward what could be its first credit downturn in decades, as the situation could snowball into higher defaults in the coming months.
U.S. corporate bonds are being downgraded at breakneck speeds, highlighting the threat posed to companies’ balance sheets by the coronavirus crisis.
A roughly €458 million European mutual fund with investments managed by Selwood Asset Management has imposed a levy on shareholders trying to exit the fund, showing how reduced liquidity in credit markets continues to hurt investors.
The coronavirus triggered a liquidity crisis in municipal bonds, but the volatility that resulted has been brewing for a decade.
Hedge fund EJF Capital LLC told clients it was suspending redemptions from one of its funds for the foreseeable future because it didn’t want to be a forced seller in what it called ‘dysfunctional’ credit markets.
Companies ranging from Oracle to Nike are borrowing record amounts in the investment-grade bond market to build cash before the full impact of the novel coronavirus hits the U.S. economy.