Two different metrics and two different messages for equity bulls – one a clear warning and the other potentially helping them. Tobin’s Q, which was propounded by economist James Tobin, is a popular investment concept. It compares an asset’s market … Continued
Last March, the Fed essentially urged investors to take on risk and go up the risk curve. They have obliged. Leverage is high in the system. This works as long as the prevailing upward momentum is in place. When a … Continued
Last week, Fed officials threw cold water on incipient taper talk, making it clear they would continue to purchase treasury securities. This followed a backup this month in rates in the long end of the treasury yield curve, with the … Continued
U.S corporate bond issuance slowed down in January, but it is too early to read too much into this. In the first month of the year, corporations issued $109 billion in investment-grade (IG) and $23.2 billion in high-yield (HY) – … Continued
U.S. corporate bond issuance continues at a healthy pace, with high-yield in particular on course for growth this year after three consecutive yearly decline. In October, corporate debt issuance totaled $140.9 billion, consisting of $118.2 billion in investment-grade and $22.7 … Continued
U.S. corporate bond issuance was $106.2 billion in June, comprising $83.1 billion in investment-grade (IG) and $23.1 billion in high-yield (HY). This puts the first-half total at $868.1 billion, of which $714.1 billion is in IG and $154 billion in … Continued
One of the hallmarks of post-Great Recession recovery has been subdued capital expenditures. In 2Q16, real non-residential fixed investment was $2.19 trillion (at a seasonally adjusted annual rate) – essentially flat since 3Q14. Investment peaked at $2.22 trillion in 3Q15. … Continued
Bloomberg carried an article this Tuesday highlighting what it called shrinking cash piles at American companies. Cash and equivalents dropped to a median $860 million at S&P 500 companies in 2Q16. At the end of that quarter, cash ex-financial sector … Continued
On Tuesday last week, Bloomberg carried an article on slowdown in stock buybacks in the U.S. TrimTabs data show that in the first seven months this year, buybacks totaled $376.5 billion, down 21 percent from $478.4 billion in the corresponding … Continued
U.S. corporate bond issuance totaled $99.7 billion in July, down 25.9 percent year-over-year. Of this, investment-grade was $85.2 billion, down 32.1 percent y/y and high-yield $14.5 billion, up 62.2 percent. The growth rate put up by high-yield is misleading as … Continued