U.S. Corporations: All Gain, No Pain?
by Editorial Staff
Updated: September 01, 2023
Good day, everyone, it's Murray Gunn here. And this month we've got some belting charts for you. Here's one you won't want to miss.
Despite an historic rise in bond yields in short-term interest rates, there really hasn't been much pain felt at all by corporate borrowers. One reason for that might be because corporates have yet to face refinancing challenges after locking in very low borrowing rates.
This chart shows the U.S. spread between the lowest rated investment grade corporate bonds and the second lowest rated. When the U.S. spread is going up, it means that the lowest rated investment grade bonds are underperforming and points to an increasing risk of downgrades to non-investment grade, or junk bond, status.
It's a good measure of sentiment, and you can see that fear of downgrades and defaults has risen in past worries over the economy.
So what is happening now? The answer might surprise you, so check out the article to find out.
Enjoy the issue and stay tuned to EWI for what will be a very interesting time ahead.
Bonds are in the driver’s seat right now
And they'll stay there for a while.
Many investors feel intimidated by bonds. But in reality, prices and yields move in predictable patterns -- Elliott wave patterns. When you track those patterns, you see what's next before that next move ever begins.
And not just in bonds. Stocks, energy, FX, cryptos -- our September 2023 Global Market Perspective updates you on 50+ of the world's biggest markets.
Financial markets which are driven by fear usually move much faster than those driven by hope. It appears the setup is in place for just such an occurrence. Here's what I'm talking about.
The wild card for the global markets remains China. You've heard about its real estate problems; now the yuan is on the rocks. Here's our monthly Global Market Perspective contributor, Mark Galasiewski, with a handy chart and a few under-the-radar highlights from the October issue to give you a unique perspective on the situation.
October is almost here, and so far, "things are quiet" in the markets, says our monthly Global Market Perspective contributor Brian Whitmer. But watch as he lists a few items on his radar as he gives you highlights from the new, October issue.