In 1Q22, US corporate bond issuance was down 14.5% y/y, with high-yield collapsing 68%. This took place even as HYG, along with LQD – already under sustained pressure – are clinging on to crucial support. In the first three months … Continued
US corporations continue to aggressively issue debt in the bond market. Even amidst this supply, demand remains good. Both LQD and HYG are near their record highs. Besides the Fed essentially acting as a backstop, corporate boards are probably also … Continued
Foreigners comprise an important source of buying in the US sovereign and corporate bond markets. In March and April, they bought some corporate bonds but massively sold off Treasury notes and bonds. The vacuum was filled by the Fed, whose … Continued
Following futures positions of non-commercials are as of April 14, 2020. 10-year note: Currently net short 70.8k, up 9.8k. The Fed is on a mission to provide a backstop to a whole host of assets. Here is its report card … Continued
Continued contraction in corporate issuance of high-yield bonds is likely creating a supply-demand imbalance, helping the likes of HYG. Eight months in, 2018 corporate debt issuance continues to shrink. August saw issuance of $98.6 billion, made up of $83.4 billion … Continued
Corporate bond issuance continues to surprise on the downside. While some technical factors could be responsible for this, the deceleration comes amidst strong GDP growth. In July, US corporations issued $61 billion in total, made up of $52.5 billion in … Continued
From a bear call spread to now short IWM, the iShares Russell 2000 ETF, a decision time is at hand. Hypothetically on May 26th, a June 5th 125/126.50 bear call spread was opened for a credit of $0.56 (short 125 … Continued