US corporate bonds issuance are slowing down due to economic bad data
U.S. corporate bond market issuance is expected to decline next week due to conflicting economic statistics. High-grade bond issuance in the first week of 2024 totaled around $59 billion, above estimates of $50 billion to $55 billion. Best-rated corporations led the rush, hoping to benefit from reduced borrowing costs due to tightening credit spreads, premium…
The Fed may cut rates on first quarter.
The Federal Reserve is not concerned about the US job market’s performance in December, as it is already monitoring for a potential fissure. The US job market has been robust, with payrolls report looming large over New Year markets, pointing to the first weekly loss in global stocks since October. Last week saw a two-month…
ETFs bond could go to $6 trillion by 2030, BlackRock said
Bond exchange-traded funds (ETFs) managed $300 billion in assets in 2023, according to BlackRock. The largest asset manager expects ETFs to be managed for $6 trillion by 2030, up from $2 trillion at the moment. The market took 17 years to raise $1 trillion, but doubled to $2 trillion in just three years. ETFs offer…
China’s property sector are worsening, Large banks take actions
China’s leading banks have increased their assessments of smaller lenders to reduce credit risk amid the country’s growing property debt crisis. Two of China’s largest state-owned banks and a prominent joint-stock bank have lowered interbank lending limitations and shorten maturity periods for high-risk smaller competitors. This move is in response to concerns about the viability…
China’s and US reach 45 years on diplomatic relations
China and the US have congratulated each other on their 45th anniversary of diplomatic relations, highlighting the positive impact on global peace, stability, and prosperity. Despite tense relations, Biden administration representatives have held meetings in Beijing to foster better relations and mutual trust before their crucial conference in San Francisco.
McDonald’s Malaysia take legal steps to court due to false statements of boycott
McDonald’s Malaysia is suing the Boycott, Divestment and Sanctions Malaysia movement for alleged false statements that harm the company’s operations. The lawsuit claims that the fast-food chain’s social media posts associate the chain with Israel’s “genocidal war against Palestinians in Gaza.” The lawsuit seeks damages of 6 million ringgit ($1.31 million).
Bitcoin get SEC attention on approving spot bitcoin ETF
Asset management firms aiming to launch bitcoin spot price ETFs have filed their SEC filings, with BlackRock Asset Management, VanEck, Valkyrie Investments, Bitwise Investment Advisers, Invesco Ltd., Fidelity, WisdomTree Investments, and a joint venture between Ark Investments and 21Shares submitting new documents detailing their marketmaker arrangements. Issuers that meet their end-of-year file modification requirements may…
Rate of short term funds reach the highest level
The cost of borrowing short-term Treasuries-backed funds has reached its highest level since 2019, with some market participants blaming dealers closing their balance sheets for the year. The DTCC GCF Treasury Repo Index rose to 5.452%, the highest level since September 2019, when declining bank reserves drove overnight loan costs to 10%. Many market participants…