Corporate-bond buyers are accepting the lowest relative yields since before the 2008 financial crisis to own dollar-denominated notes that face declining returns as the Federal Reserve considers paring record stimulus.
Germany’s government bonds headed for a weekly loss, with 10-year yields rising the most since August, before a report analysts said will show factory orders in Europe’s largest economy declined in October.
Qantas Airways Ltd.’s credit rating was cut to junk at Standard & Poor’s a day after the carrier flagged a record first-half loss and 1,000 job cuts. The shares fell to the lowest since July 2012 and bond risk soared.
Paul Kazarian, the U.S. investor buying up Greek government bonds, calls the European Union’s accounting “completely irrational” and wants to help finance an alternative to allow Greece to return to the debt markets.
U.S. companies could encounter higher borrowing costs under a congressional tax plan that would reverse a 29-year-old policy making it easier for other countries’ residents to invest in U.S. corporate debt.
Following the Standard & Poor’s 500 Index’s record high in November, will stocks continue their ascent amid what’s likely to be lackluster global expansion in 2014? In September, the U.S. Federal Reserve’s unexpected delay in tapering its stimulus program whipsawed debt markets. Where should bond investors go for returns?
JPMorgan Chase & Co. recommends sticking with U.S. high-yield bonds next year as the best protection against rising interest rates. Morgan Stanley cautions that valuations are unattractive following a record five-year rally.