Pagina's

22 juli 2014

high yield wijst weg omlaag voor beurzen

Sommigen zien high yield obligaties als de canary in the coal mine: het eerste waarschuwingssignaal dat er iets niet in orde is.
Grote outflow, men wil nog steeds liever schulden van Emerging Markets zoals de Oekraïne.

1 opmerking:

  1. The Fed Tries (And Fails) To Tame The Junk Bond Market Via Regulation

    ◾Bloomberg.com – Fed’s Junk Loan Bubble-Busting Faces Trouble as Sales Jump
    One of the Federal Reserve’s first post-crisis tests of its ability to quash excessive risk-taking using regulatory tools is so far looking like a failure. The Fed’s Board of Governors told Congress last week that it’s engaged in “strong supervisory follow-up” to guidance given to banks in 2013 to improve their underwriting standards for high-yield loans. Despite those efforts, Chair Janet Yellen said she’s still seeing a “marked deterioration” in quality. For the first time, more than half of the junk-rated loans arranged in the U.S. this year lack typical lender protections like limits on the amount of debt borrowers can amass relative to earnings. Yellen’s own easy-money policies are boosting demand for such high-yielding products at the same time that she tests her doctrine that financial bubbles should be constrained by supervisory actions, not a general rise in interest rates. “Regulators talk about using tools and other supervisory measures to rein in the banks,” said Beth MacLean, an executive vice president and bank-loan money manager at Pacific Investment Management Co. in Newport Beach, California. “But ultimately there is still supply and demand, and there is ample demand,” MacLean said. “There is not much they can do, and that is evident in that terms haven’t really changed since the guidelines came out.”

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