LONDON—Stock markets were deep in the red and some key government bond yields climbed to their highest in years on Thursday after the Federal Reserve signaled the possibility of faster-than-expected U.S. rate hikes and stimulus withdrawal. Both Asia and Europe’s bourses fell heavily after Wall Street’s tech-heavy Nasdaq plunged more than 3 percent on Wednesday…
As Pressure Mounts, China Evergrande Seeks Delaying Onshore Bond Payment
BEIJING/HONG KONG—China Evergrande Group will seek a six-month delay in the redemption and coupon payments of a 4.5 billion yuan ($157 million) bond in a meeting with bond holders this weekend, underscoring the pressure on the debt-laden property developer. Evergrande is struggling to repay more than $300 billion in liabilities, including nearly $20 billion of…
Taper is Bond Bullish
Commentary Most investors believe when the Federal Reserve tapers its balance sheet, it means interest rates are going to rise. Yet, something peculiar happens when the Fed reduces its monetary support for the economy, as interest rates tend to fall. At the end of quantitative easing 3 in 2014 and later in 2017, interest rates…
More Fed Officials Open to Speeding Up Bond-Buying Taper, Rates Liftoff
A growing number of Federal Reserve policymakers indicated they would be open to speeding up the elimination of their bond-buying program if high inflation held and move more quickly to raise interest rates, minutes of the U.S. central bank’s last policy meeting showed. The readout released on Wednesday was the latest indication that anxiety about…
Asian Bonds Receive Lowest Foreign Flows This Year in October
Asian bonds received lowest foreign inflow this year in October, hit by concerns over higher inflation levels and a slowdown in China’s economy. Overseas investors purchased a combined net total of $2.25 billion in Indonesian, Malaysian, South Korean, Thai, and Indian bonds last month, the smallest buying since December 2020, data from regulatory authorities and…
Debt on Top of Debt: Beijing Issues More Bonds Amid Economic Slowdown
News Analysis Beijing issues new bonds as debts mount and credit swaps increase in price. Local governments, hard hit by the real estate slowdown, are expected to issue more bonds. Much has been written about the quantity of U.S. debt held by China. The Chinese regime, however, has also been steadily increasing its own sale…
Ford to Retire $5 Billion in High-Interest Debt, Issue Green Bonds
Ford Motor Co. said it plans to retire up to $5 billion in high-interest debt and tap into the fast-growing market for “green” bonds to help it finance new electric vehicles (EVs) and expand credit to customers with lower scores. Ultimately, the automaker aims to regain an investment grade rating for itself and Ford Credit,…
China’s Modern Land Misses Bond Payment, Property Shares Drop
HONG KONG/SHANGHAI—Modern Land missed a bond payment, the latest Chinese property developer to do so, adding to worries about the wider impact of the debt crisis at behemoth China Evergrande Group, and dragging on shares in the sector. Modern Land (China) Co., Ltd. said in a filing that it had not repaid principal and interest…
China Real Estate Shares, Bonds Hit by Evergrande Concerns
SHANGHAI—Shares and bonds of Chinese real estate companies slid on Thursday, reflecting uncertainty about how a debt crisis will play out at China Evergrande Group and the wider property sector as another developer was hit by a rating downgrade. Evergrande, which has more than $300 billion in liabilities and 1,300 real estate projects in over…
US Treasuries Losing Safe-Haven Status, Says New Study
U.S. Treasury securities could be losing their luster as a conventional safe-haven asset, says a new report by the Institute of International Finance (IIF). According to the Washington-based trade association for the global financial services industry, the United States had been one of the few nations to witness an outflow of foreign investment in governments…
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