Bangalore Airport in Talks to Raise About $1.1 Billion in Bonds
Bangalore International Airport Ltd. in India is in advanced talks to raise about 90 billion rupees ($1.1 billion) by issuing local currency bonds, seeking to refinance an existing debt and fund expansion projects, according to people familiar with the matter.
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Yahoo
25 minutes ago
- Yahoo
Buffered ETFs gain steam in valuation-wary markets
As a new round of U.S. tariffs send markets tumbling, could a once-overlooked ETF hedge offer investors the safety net they're seeking? Buffered ETFs, also known as defined outcome products, have gained traction in recent years by offering partial downside protection in exchange for capped gains. Each fund is structured to shield investors from a set percentage of losses, typically 10% to 20%, over a fixed period. In return, gains are limited, and the terms reset at the end of each outcome window. Buffered ETFs struggled to gain traction after their late 2018 debut — and for good reason. From 2019 through 2021, the S&P 500 returned an average of 24% annually, leaving little appeal for products that cap upside. But a sharp downturn in 2022 changed the equation. With the index falling nearly 20% that year, investors poured nearly $10 billion into buffered ETFs, breathing new life into the once-overlooked product. READ MORE:Top 10 dividend stocks of the past yearThe case for investing in emerging markets, despite underperformanceThe 'granular' investing strategy with big tax savings for HNW clientsWall Street builds S&P 500 'no dividend' fund in new tax dodge During times of declining equities, investors often rely more heavily on bonds. But in recent years that strategy hasn't always worked out, according to Charles Champagne, head of ETF strategy at Allianz Investment Management. "When you have an equity and fixed income portfolio, if equities are in a tougher market, you expect your fixed income to offset those losses, and that just really hasn't happened in the past [couple of years]," Champagne said. "So these products really help in that capacity." To build buffered ETFs, issuers like Allianz use options to shape both downside protection and upside limits. They start by buying a deep-in-the-money call to mirror market exposure. 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And then, like anything, economies of scale will eventually start to kick in," Champagne said. "And as assets continue to drive towards defined outcome ETFs, that will inevitably draw down that total cost to the investor through the expense ratio. But anytime you're dealing in options or exotic investments, there are additional costs that are factored into the total cost of the ETF." High costs aren't the only deterrent for some advisors when considering buffered ETFs. Carson McLean, the founder of Altruist Wealth Management in Charlotte, North Carolina, said that buffered ETFs often "overpromise and underdeliver" when it comes to real-world investing behavior. "They introduce complexity, hidden trade-offs (like forgone dividends and capped returns), and a timing dependency that most investors don't fully grasp," McLean said. "In my view, it's risk repackaging more than risk reduction." Advisors like Kyle Ray, the founder of Ridgeback Wealth Management in Peachtree City, Georgia, share a similar view of buffered ETFs. "I am not a fan of buffered ETFs for several reasons," Ray said. "They can be complex, costly and tax-inefficient due to short-term capital gains resulting from frequent options trading. Additionally, they carry liquidity risks and other drawbacks." More than one way to hedge For clients looking for downside protection, well-worn strategies are often still the best option, according to some advisors. McLean says a traditional bond-equity mix can still work well, especially when combined with thoughtful planning, disciplined rebalancing and guidance that keeps clients steady during market swings. With this approach, it's crucial to match the portfolio structure to the actual spending needs and time horizon of the client, he said. "That may not sound exciting, but it tends to work better than most engineered products," McLean said. 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"The bottom line answer is that no matter how you feel about market valuations, the market can either stay irrational a lot longer than you expect, or alternatively, corporate earnings can catch up with lofty valuations, bringing them back down to reality. Case in point are the earnings of companies like Meta and Microsoft," said Alex Caswell, a financial planner at Wealth Script Advisors in San Francisco. "I would encourage investors to think primarily about the risk/reward balance in their entire portfolio and commit to a long-term holding mentality," he added." 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
Wall Street Journal
28 minutes ago
- Wall Street Journal
Weak Jobs Report and Tariff Blitz Push U.S. Stocks Lower - Minute Briefing
Full Transcript This transcript was prepared by a transcription service. This version may not be in its final form and may be updated. Charlotte Gartenberg: Here's your closing bell brief for Friday, August 1st, I'm Charlotte Gartenberg for the Wall Street Journal. US markets were lower across the board today. The Dow Industrials fell 1.2% while the Nasdaq composite led losses with a drop of 2.2%. The declines were fueled by a weaker than expected July jobs report and President Trump's new tariff plan. The new tariffs affect a number of countries, including Canada, Switzerland, and Taiwan. The weak jobs report increased investor bets that the Federal Reserve will cut rates. After the report, President Trump said he directed his team to fire the top Bureau of Labor Statistics official. Among individual companies, shares of Amazon ended down 8.3% after the company's cloud computing arm reported disappointing growth. The industrial supplies company WW Grainger slid over 10% after cutting its profit outlook due to tariff related factors. The Solar Energy Company, First Solar rallied 5.3% on earnings and revenue guidance that beat expectations. Shares of Reddit jumped more than 17% after the social media platform swung to a quarterly profit driven by AI improvements. And the software company, Figma moved 5.6% higher after soaring 250% in its stock market debut yesterday. Heads Up, an artificial intelligence tool. Helped us make this episode by creating summaries that were based on WSJ Reporting and then reviewed and adapted by an editor. We'll have a lot more coverage of the day's news on the Wall Street Journal's. What's News Podcast? You can add it to your playlist on your smart speaker or listen and subscribe wherever you get your podcasts.
Yahoo
29 minutes ago
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Sugar Prices Pressured as Brazil Ramps Up Sugar Production
October NY world sugar #11 (SBV25) on Friday closed down -0.17 (-1.04%), and October London ICE white sugar #5 (SWV25) closed down -2.80 (-0.60%). Sugar prices were under pressure Friday, with NY sugar sliding to a 1-week low and London sugar falling to a 3.5-week low. Signs of stronger sugar production in Brazil are weighing on sugar prices after Unica on Thursday reported Brazil's Center-South sugar output in the first half of July rose +15% y/y to 3.4 MMT. Also, the amount of sugarcane being crushed for sugar by Brazil's sugar mills has increased to 54% from 50% the same time last year. More News from Barchart Brazil Tariff Risks Underpin Arabica Coffee Prices Arabica Coffee Rises as Tariff Risks Remain Cocoa Prices Settle Sharply Higher on Supply Woes Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. The outlook for higher sugar production in Brazil is bearish for sugar prices. Datagro said Monday that dry weather in Brazil has encouraged the country's sugar mills to increase their cane crushing, diverting more of the cane crush toward more profitable sugar production rather than ethanol. The outlook for higher sugar exports from India is negative for prices after Bloomberg reported that India may permit local sugar mills to export sugar in the next season, which starts in October, as abundant monsoon rains may produce a bumper sugar crop. India's Meteorological Department reported Monday that cumulative monsoon rain in India is at 440.1 mm, or 8% above normal as of July 27. Also, the Indian Sugar and Bio-energy Manufacturers Association on Thursday said that it will seek permission to export 2 MMT of sugar in 2025/26. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices. On June 2, India's National Federation of Cooperative Sugar Factories projected that India's 2025/26 sugar production would climb +19% y/y to 35 MMT, citing larger planted cane acreage. That would follow a -17.5% y/y decline in India's sugar production in 2024/25 to a 5-year low of 26.2 MMT, according to the Indian Sugar Mills Association (ISMA). Sugar prices have retreated over the past four months, with NY sugar falling to a 4.25-year low last month and London sugar sliding to a 4-year low, driven by expectations of a sugar surplus in the 2025/26 season. On June 30, commodities trader Czarnikow projected a 7.5 MMT global sugar surplus for the 2025/26 season, the largest surplus in 8 years. On May 22, the USDA, in its biannual report, projected that global 2025/26 sugar production would increase by +4.7% y/y to a record 189.318 MMT, with global sugar ending stocks at 41.188 MMT, up 7.5% y/y. Signs that the recent slide in sugar prices to 4-year lows has sparked a pickup in demand are positive for sugar prices. China's June sugar imports soared by 1,435% to 420,000 MT. Also, President Trump last Wednesday said Coca-Cola agreed to use cane sugar in Coke beverages sold in the US instead of high-fructose corn syrup, which could boost US sugar consumption by +4.4% to 11.5 MMT from 11 MMT currently, according to Bloomberg Intelligence. Sugar prices also have support from reduced sugar production in Brazil. Unica reported Thursday that the cumulative 2025/26 Brazil Center-South sugar output through mid-July fell by -9.2% y/y to 15.655 MMT. Last month, Conab, Brazil's government crop forecasting agency, said 2024/25 Brazil sugar production fell by -3.4% y/y to 44.118 MMT, citing lower sugarcane yields due to drought and excessive heat. The outlook for higher sugar production in Thailand is bearish for sugar prices. On May 2, Thailand's Office of the Cane and Sugar Board reported that Thailand's 2024/25 sugar production rose +14% y/y to 10.00 MMT. Thailand is the world's third-largest sugar producer and the second-largest exporter of sugar. The International Sugar Organization (ISO) raised its 2024/25 global sugar deficit forecast to a 9-year high of -5.47 MMT on May 15, up from a February forecast of -4.88 MMT. This indicates a tightening market following the 2023/24 global sugar surplus of 1.31 MMT. ISO also cut its 2024/25 global sugar production forecast to 174.8 MMT from a February forecast of 175.5 MMT. The USDA, in its bi-annual report released May 22, projected that global 2025/26 sugar production would climb +4.7% y/y to a record 189.318 MMT and that global 2025/26 human sugar consumption would increase +1.4% y/y to a record 177.921 MMT. The USDA also forecasted that 2025/26 global sugar ending stocks would climb +7.5% y/y to 41.188 MMT. The USDA's Foreign Agricultural Service (FAS) predicted that Brazil's 2025/26 sugar production would rise +2.3% y/y to a record 44.7 MMT FAS predicted that India's 2025/26 sugar production would rise +25% y/y to 35.3 MMT due to favorable monsoon rains and increased sugar acreage. FAS predicted that Thailand's 2025/26 sugar production will climb +2% y/y to 10.3 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 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
