New World Shares, Bonds Jump After Report on Financing Talks
The Hong Kong-listed property firm's shares jumped as much as 16%, the most in five months, before paring some of the gains. Some of New World's dollar bonds rose about 2 cents, according to credit traders. Its 4.5% notes due in 2030 were at about 53 cents and on track for their biggest gain in two months, Bloomberg-compiled data show.
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2 hours ago
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Everything's Expensive. There's Nowhere to Hide: Credit Weekly
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When a client asked Insight Investment's April LaRusse for ways to boost spreads without materially amplifying potential losses in recent weeks, she didn't have an immediate answer. 'It's certainly not easy to find ways to get more yield without introducing different risk,' said the head of investment specialists in an interview. 'It's pretty tricky. When you get tight spreads, you get a lot less dispersion.' The growth of both credit index and fixed-maturity funds probably plays a role here: investors are increasingly just buying most of the market, flattening out the differences in bonds' yields. The lack of variability makes it difficult to find bargains. Massive inflows have swamped corporate bond funds recently as investors chase securities offering higher yields than Treasuries, even if spreads are relatively tight. Insurance companies have also been packaging company debt into annuities to sell to the growing number of US retirees. 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2 hours ago
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Everything's Expensive. There's Nowhere to Hide: Credit Weekly
(Bloomberg) -- Credit market bargain shoppers are having the hardest time finding deals in at least a generation. New York Warns of $34 Billion Budget Hole, Biggest Since 2009 Crisis Three Deaths Reported as NYC Legionnaires' Outbreak Spreads All Hail the Humble Speed Hump A New Stage for the Theater That Gave America Shakespeare in the Park Chicago Schools' Bond Penalty Widens as $734 Million Gap Looms A relentless rally has left valuations stretched on just about all high-grade company debt globally. The difference between spreads on individual bonds and the average of the index is the lowest on record, according to data compiled by Bloomberg going back to 2009. Risk premiums are low for top-notch and weaker companies alike. In junk bonds the spread variability, or dispersion, is at its lowest since right before the onset of the Covid-19 pandemic. Investors looking to juice their returns now typically have to take on a lot more risk for not much extra yield. When a client asked Insight Investment's April LaRusse for ways to boost spreads without materially amplifying potential losses in recent weeks, she didn't have an immediate answer. 'It's certainly not easy to find ways to get more yield without introducing different risk,' said the head of investment specialists in an interview. 'It's pretty tricky. When you get tight spreads, you get a lot less dispersion.' The growth of both credit index and fixed-maturity funds probably plays a role here: investors are increasingly just buying most of the market, flattening out the differences in bonds' yields. The lack of variability makes it difficult to find bargains. Massive inflows have swamped corporate bond funds recently as investors chase securities offering higher yields than Treasuries, even if spreads are relatively tight. Insurance companies have also been packaging company debt into annuities to sell to the growing number of US retirees. 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While the firm still has significant exposure to corporate debt, its portfolio managers have increased positions in more defensive assets: cash, government bonds, covered bonds and AAA securitized paper, Chorlton said. Those categories should do better than 'blindly continuing into the corporate bond market assuming that things will be this good forever,' he added. Finding cheap high-yield bonds is also a challenge. Winnowing out differentiated yield without dipping down into distressed debt or deeply junk-rated debt that's not trading at wide enough levels has been a key concern for Al Cattermole, fixed income portfolio manager at Mirabaud Asset Management. 'I don't want to add CCCs that are trading like Bs,' Cattermole said, referring to different rating bands in the junk bond market. 'That's the conundrum for us at the moment.' 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Marc Rowan, Chief Executive Officer of Apollo Global Management Inc., said trading private assets has the potential to turn the industry 'on its head' and said those who resist it are generally charging high fees that they don't want revealed. A Blackstone Inc. fund further cut the value of a private credit loan for Thoma Bravo-backed software company Medallia Inc., revealing growing stress for its single largest investment. The White House fired five of the seven board members of the federal watchdog that oversees Puerto Rico's finances, inserting itself in the island's high-stakes debt and contract negotiations. Carlyle Group Inc. pulled off a string of exits in the second quarter, selling $3.7 billion of investments from traditional private equity-style funds — a 12-fold increase from the same period a year earlier. Its buyout rivals have recently struggled to sell out of bets profitably. Apollo Global Management Inc. is increasing a landmark loan it made to SoftBank Group to $5.4 billion, a new record for a booming type of debt that's becoming a must have for private capital funds and their backers. JPMorgan Chase is making preliminary inquiries with investors to gauge appetite for a significant risk transfer tied to a portfolio of loans used to purchase artwork. On the Move KKR has hired Ken Murata as a managing director for its credit business in Japan as the country becomes a key market for the private credit boom in Asia. Murata joined from Goldman Sachs, where he was managing director and head of Strategic Solutions and Financing Group in its investment banking division. He will start in September. Citigroup is hiring Aashish Dhakad from Ares Management to become head of private credit origination for North America. He will lead the lender's effort to source debt deals beyond the scope of its existing tie-up with Apollo Global Management. Blackstone hired Goldman Sachs's Mao Ito, its first hire to focus on private credit origination in Japan, joining rivals including KKR to tap a fast-growing market for the global $1.7 trillion industry. HSBC appointed Jake Hartmann as managing director and head of its US debt capital markets desk for financial institutions. He joins from Barclays, where he held a similar role focusing on US regional banks and insurance. Annika Kim is joining the Texas Municipal Retirement System as the fund's new credit director. The former private equity employee at Apollo Global Management is one of a number of new hires at TMRS. Ares Management alumnus Scott Graves has added two partners at Lane42, his new alternative investment firm. David Farber is coming in from Banco Santander, where he was head of leveraged finance. Victoria Aparece, a former managing director at Centerbridge Partners, will also join the upstart shop. Monroe Capital hired Todd Davis as director for loan originations. Davis previously worked at Antares Capital. --With assistance from Dan Wilchins. The Pizza Oven Startup With a Plan to Own Every Piece of the Pie Digital Nomads Are Transforming Medellín's Housing Russia's Secret War and the Plot to Kill a German CEO It's Only a Matter of Time Until Americans Pay for Trump's Tariffs The Game Starts at 8. The Robbery Starts at 8:01 ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 hours ago
- Bloomberg
Everything's Expensive. There's Nowhere to Hide: Credit Weekly
Credit market bargain shoppers are having the hardest time finding deals in at least a generation. A relentless rally has left valuations stretched on just about all high-grade company debt globally. The difference between spreads on individual bonds and the average of the index is the lowest on record, according to data compiled by Bloomberg going back to 2009.
