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A benchmark gauge of U.S. company credit risk fell for a ninth day in the longest stretch of declines since December 2010 after the Federal Reserve’s upgraded assessment of the world’s biggest economy drove investors to higher-risk assets.
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Bond investors are planning to hedge against a sudden rise in interest rates that would trigger a selloff parallel to 1994, according to Rizwan Hussain, a New York-based credit strategist at Morgan Stanley.
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The cost to protect the debt of U.S. companies against default held at about a four-day high as investors waited for lawmakers to settle differences on the federal debt limit, outweighing companies beating profit expectations.
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The cost of protecting U.S. corporate bonds from default fell to the lowest in eight months on speculation the economy can withstand the European region’s sovereign-debt crisis.
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The cost of protecting U.S. corporate bonds from default fell to a one-week low amid speculation that nations will pledge more aid to Greece.
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A benchmark gauge of U.S. company credit risk dropped to the lowest level in two months as evidence of manufacturing strength in America and China stoked optimism the global economy will weather Europe’s debt turmoil.
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Companies sold $33.7 billion of junk bonds in April, a record for the month, with borrowers rushing to issue before investors pull back from the riskiest securities.
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After two years stockpiling cash and trimming debt, Discovery Communications Inc. did what U.S. companies collectively are doing for the first time since the nation pulled itself out of the worst recession in seven decades: It borrowed some more money.
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The cost to protect bonds issued by Seagate Technology Plc climbed to the highest since September 2009 after reports TPG Capital and KKR & Co. are in talks to acquire the disk-drive maker. Credit-default swaps on other buyout candidates also climbed.
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The cost to hedge against losses on U.S. government debt rose to the most in six weeks as investors bet the Federal Reserve will put more cash into the economy and a report showed home prices continued to drop.