Slowing consumption, falling exports, weak energy sector lead to stagnant GDP growth.
The transaction is heavily oversubscribed.
Pace of economic growth in China slows; investors bet on additional easing.
The ECB's QE program and soft economic data have driven fixed-income returns, while miserly yields on sovereign debt make U.S. corporates more attractive to global investors.
Barclays' credit rating downgraded; UnitedHealth acquiring Catamaran.
European banks downgraded; Kraft and Heinz to merge.
Considering the historically low interest rates on sovereign bonds in developed markets, corporate bonds should perform well on a relative basis.
Fed intimates that rates will rise at a slower pace.
New issue supply starting to overwhelm demand.
Huge new issue supply easily digested by market.
Ahead of the ECB's impending bond purchases, global investors have been attracted to U.S. debt's higher all-in yields and purchasing-power protection as the U.S. dollar appreciates.
Corporations finding cheaper financing in Europe.
Corporations benefit in new issue market as demand drives cheaper financing.
More strategic M&A: Expedia to acquire Orbitz.
Strategic M&A heats up while large LBOs remain cool.
Fixed-income returns were unusually strong as the ECB announced a stimulus program, uncertainty followed Greek elections, and growth slowed in China.
Looking at the impact of Europe's quantitative easing program on corporate bond markets.
New issue market subdued; JPMorgan's issue attractive whereas Ecolab looked expensive.
Fixed-income returns in 2014 primarily driven by declining interest rates.
With falling interest rates behind us, we expect the high-yield market will outperform the investment-grade market, even if we see some energy-sector defaults.
The boost from declining rates may be over, but macroeconomic fundamentals in the U.S. should generally be supportive of credit risk.
Retailers' bonds outperform while energy bonds continue to underperform.
Will the Fed finally eliminate 'considerable time'?
New issue market reaches new volume records
Declining rates have boosted investment-grade securities, but the energy sector's woes have held back high-yield bonds.
China cuts interest rates and ECB pledges to ramp up its stimulus programs.
GDP and inflation pick up in euro area, which may keep ECB monetary policy on hold.
Economic metrics keep Fed on autopilot; ECB intimates more QE is coming.
Although spreads could grind a bit tighter in the near term, rising interest rates will be a headwind.
GDP grows 3.5%, but is likely to moderate in the fourth quarter.
Tech investors burned by earnings disappointments and recapitalization.
Only best-known issuers with strong balance sheets dared tap the new issue market.
While marriages are increasing in the health-care sector, conscious uncoupling increases in the technology sector.
But market rebound isn't enough to offset losses experienced earlier in the week.
Investment-grade bonds will likely continue to struggle as rates rise, but high-yield bonds should hold their value better.
Widening high-yield spreads will start to attract investors.
With interest rates poised to rise further and credit spreads near their tightest levels since the end of the 2008–09 credit crisis, we expect rising rates to largely offset the yield that investment-grade corporate bonds currently offer.
New Best Idea highlighted, but otherwise, value hard to find.
Credit spreads were unable to hold their ground last week.
Credit spreads holding steady despite new issue supply.
Although investment-grade bonds have performed better recently, we expect high-yield bonds to hold their value better in the medium term as rates rise and the economy continues to grow.
Economic indicators released last week indicate that US economy is continuing to expand at a moderate pace.
Going forward, the corporate bond market will be much more closely tied to Treasury-bond returns than in the past, says Morningstar's Dave Sekera.
As credit spreads have tightened on a nearly continuous trend over the past year, they are becoming richly valued relative to their historical average.
Corporate credit spreads are at very tight levels but have little room to further narrow the gap.
The best 2014 outcome investors can hope for regarding investment-grade corporate bonds is the current yield.
Due to the Fed taper and expected rise in interest rates, corporate-bond investments likely have little room to grow for the remainder of the year.
New issue supply fell well short of demand to put money to work last week.