JUNK BONDS

Wall Street wolves go quiet as junk bonds are trashed

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Original article by Philip Baker
The Australian Financial Review – Page: 28 : 13-Aug-14

The yield on junk bonds has fallen to about five per cent, compared with nearly 23 per cent at the peak of the global financial crisis. Dealogic figures show that some $US210bn ($A226.5bn) worth of junk bonds were sold in the first seven months of 2014, a level not seen since 2000. Demand for corporate bonds has also been weak, with less than $US60bn worth of these bonds having been sold during the first eight days of August

CORPORATES
DEALOGIC HOLDINGS PLC, UNITED STATES. FEDERAL RESERVE BOARD, EMERGING PORTFOLIO FUND RESEARCH INCORPORATED, LIPPER ANALYTICAL SERVICES, BERKSHIRE HATHAWAY INCORPORATED, BLOOMBERG LP

Shares rebound and the seven-year itch

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Original article by Philip Baker
The Australian Financial Review – Page: 29 : 29-Jul-14

Australia’s benchmark S&P/ASX 200 Index rose to a new high only six years after the 1987 sharemarket correction, and just three years after the correction in 1980. In contrast, the market is approaching the seventh anniversary of its record close in November 2007, and it has yet to return to or surpass this level. The underperforming junk bond market may prove to be the "turning point" that investors are seeking for shares

CORPORATES
STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S ASX ALL ORDINARIES ACCUMULATION INDEX, UNITED STATES. FEDERAL RESERVE BOARD, NUMERICABLE GROUP SA, BANK OF AMERICA CORPORATION, MERRILL LYNCH AND COMPANY INCORPORATED, BARCLAYS GLOBAL INVESTORS