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.
The first annual losses in U.S. government-backed mortgage bonds since 1994 are deepening as the dual threats of a new regulator and a Federal Reserve pullback leave buyers navigating around what JPMorgan Chase & Co. calls a modern-day Scylla and Charybdis.
OAO Mechel, the Russian coal producer with about $9.55 billion in net debt as of June, won a waiver from banks of any tests that it’s meeting the terms of a loan, enabling the company to avoid a technical default.
OAO Mechel, Russia’s largest maker of coal for steelmakers, fell for a second day in New York as concern that prices for the fuel are dropping outweighed a pact that will allow the company to avoid defaulting on its debt.
OAO Mechel fell to the lowest level on record amid speculation that an investor facing a margin call may have sold shares as Russia’s largest coking coal producer holds talks with banks about restructuring debt.
OAO Mechel’s chairman, Russian billionaire Igor Zyuzin, complained to Prime Minister Dmitry Medvedev about an investigation into the coal producer’s taxes, he said in remarks broadcast on state television Rossiya 24.