Latest news with #Payden&Rygel
Business Upturn
5 hours ago
- Business
- Business Upturn
CORRECTION — Payden & Rygel
LOS ANGELES, June 09, 2025 (GLOBE NEWSWIRE) — In a release issued earlier today by Payden & Rygel, please note we have corrected the proper name of the Payden & Rygel municipal bond team in the headline, as well as the first and second paragraphs. The corrected release follows: Default ahead for California? Unlikely, says New Report From Payden & Rygel's California Municipal Bond Team Recent concerns over California's fiscal health—driven by declining initial public offering (IPO) volume, reduced federal funding risk, and rising costs—have prompted questions about the state's financial stability. However, after a thorough analysis, Payden & Rygel's municipal bond team believes the risk of a bond default or severe credit deterioration remains low. 'While we understand investors' concerns about the California economy, its capacity to generate adequate revenue to match spending levels and the potential impact on the state's municipal debt, we believe that although the revenue picture is softening, the outlook remains relatively stable over the next 1-2 years with potential credit rating deterioration limited to just one notch over that timeframe in a worst case scenario. Near term ratings will hinge on the final FY 26 budget that we expect Sacramento to pass by June 15th, otherwise lawmakers don't get paid,' say the report's authors, the Payden & Rygel's municipal bond team. 'We are also closely monitoring the evolution of entitlement spending reduction proposals at the federal level but ultimately expect Medicaid cuts to be less pervasive than currently feared,' they added. Here are six reasons to be optimistic: Reason 1: Legal structure. The 10th amendment prohibits states, including California, from filing for bankruptcy. While defaults are technically possible, California is nowhere near default based on current indicators. Reason 2: Strong revenues, limited impact from IPO weakness With less than a month in the current fiscal year, tax revenues are weakening but remain strong, with Governor Newsom's recent May Revision projecting a relatively small $12 billion projected for next year. IPO activity, while down, is not a core revenue driver. Its recent decline reflects a normalization post-COVID stimulus, not a structural weakness. Reason 3: Credit ratings are stable All three major credit agencies S&P, Moody's, and Fitch—rate California AA-/Aa2/AA, respectively, all with stable outlooks but we expect the ratings agencies to refine their views this summer following the finalization of the FY 2026 budget process by the end of June. Reason 4: A strong economy with healthy reserves California's gross domestic product (GDP) ranks #4 globally, recently surpassing Japan, underscoring a broad, diverse and innovative state economy with a deep employment base. Although reserves have dipped since 2023 due to pandemic fund drawdowns and budgetary uncertainty in FY 2023/2024 due to delayed tax receipts, they remain at comparatively strong levels historically that will grant state leadership time to navigate federal policy uncertainty, which Governor Newsom blames for a softening of revenue. Reason 5: Manageable liabilities Debt service is low at 3–4% of governmental expenditures, and pension funding remains solid. Because of constitutional protections that prioritize education and debt payments, revenue would need to drop over 50% to threaten debt service. For context, State revenues dropped 15% in 2008. Reason 6: Credit conditions are weakening but remain healthy Despite uncertainty, California retains healthy credit fundamentals with relatively stable ratings, manageable deficits, excellent access to liquidity and conservative budgeting assumptions that support bondholder confidence. In summary, while recent headlines surrounding tariffs, fiscal tightening, and economic uncertainty have contributed to heightened market anxiety, our base case remains firm: Although California's credit profile is softening, it continues to demonstrate resilience, supported by a vast and diversified tax base, substantial reserve levels across all governmental funds, and long-term liabilities that we consider both moderate and manageable. Here is a link to the full report. ABOUT PAYDEN & RYGEL With $165 billion under management, Payden & Rygel is one of the largest privately-owned global investment advisers focused on the active management of fixed income and equity portfolios. Payden & Rygel provides a full range of investment strategies and solutions to investors around the globe, including Central Banks, Pension Funds, Insurance Companies, Private Banks, and Foundations. Independent and privately-owned, Payden is headquartered in Los Angeles and has offices in Boston, London, and Milan. Visit for more information about Payden's investment offerings, including US mutual funds and Irish-domiciled funds (subject to investor eligibility). This material reflects the firm's current opinion and is subject to change without notice. Sources for the material contained herein are deemed reliable but cannot be guaranteed. This material is for illustrative purposes only and does not constitute investment advice or an offer to sell or buy any security. Past performance is no guarantee of future results. For press requests, please contact:Kate Ennis [email protected] 301-580-6726
Yahoo
7 hours ago
- Business
- Yahoo
CORRECTION -- Payden & Rygel
LOS ANGELES, June 09, 2025 (GLOBE NEWSWIRE) -- In a release issued earlier today by Payden & Rygel, please note we have corrected the proper name of the Payden & Rygel municipal bond team in the headline, as well as the first and second paragraphs. The corrected release follows: Default ahead for California? Unlikely, says New Report From Payden & Rygel's California Municipal Bond TeamRecent concerns over California's fiscal health—driven by declining initial public offering (IPO) volume, reduced federal funding risk, and rising costs—have prompted questions about the state's financial stability. However, after a thorough analysis, Payden & Rygel's municipal bond team believes the risk of a bond default or severe credit deterioration remains low. 'While we understand investors' concerns about the California economy, its capacity to generate adequate revenue to match spending levels and the potential impact on the state's municipal debt, we believe that although the revenue picture is softening, the outlook remains relatively stable over the next 1-2 years with potential credit rating deterioration limited to just one notch over that timeframe in a worst case scenario. Near term ratings will hinge on the final FY 26 budget that we expect Sacramento to pass by June 15th, otherwise lawmakers don't get paid,' say the report's authors, the Payden & Rygel's municipal bond team. 'We are also closely monitoring the evolution of entitlement spending reduction proposals at the federal level but ultimately expect Medicaid cuts to be less pervasive than currently feared,' they added. Here are six reasons to be optimistic: The 10th amendment prohibits states, including California, from filing for bankruptcy. While defaults are technically possible, California is nowhere near default based on current less than a month in the current fiscal year, tax revenues are weakening but remain strong, with Governor Newsom's recent May Revision projecting a relatively small $12 billion projected for next year. IPO activity, while down, is not a core revenue driver. Its recent decline reflects a normalization post-COVID stimulus, not a structural weakness. All three major credit agencies S&P, Moody's, and Fitch—rate California AA-/Aa2/AA, respectively, all with stable outlooks but we expect the ratings agencies to refine their views this summer following the finalization of the FY 2026 budget process by the end of gross domestic product (GDP) ranks #4 globally, recently surpassing Japan, underscoring a broad, diverse and innovative state economy with a deep employment base. Although reserves have dipped since 2023 due to pandemic fund drawdowns and budgetary uncertainty in FY 2023/2024 due to delayed tax receipts, they remain at comparatively strong levels historically that will grant state leadership time to navigate federal policy uncertainty, which Governor Newsom blames for a softening of service is low at 3–4% of governmental expenditures, and pension funding remains solid. Because of constitutional protections that prioritize education and debt payments, revenue would need to drop over 50% to threaten debt service. For context, State revenues dropped 15% in uncertainty, California retains healthy credit fundamentals with relatively stable ratings, manageable deficits, excellent access to liquidity and conservative budgeting assumptions that support bondholder confidence. In summary, while recent headlines surrounding tariffs, fiscal tightening, and economic uncertainty have contributed to heightened market anxiety, our base case remains firm: Although California's credit profile is softening, it continues to demonstrate resilience, supported by a vast and diversified tax base, substantial reserve levels across all governmental funds, and long-term liabilities that we consider both moderate and manageable. Here is a link to the full report. ABOUT PAYDEN & RYGEL With $165 billion under management, Payden & Rygel is one of the largest privately-owned global investment advisers focused on the active management of fixed income and equity portfolios. Payden & Rygel provides a full range of investment strategies and solutions to investors around the globe, including Central Banks, Pension Funds, Insurance Companies, Private Banks, and Foundations. Independent and privately-owned, Payden is headquartered in Los Angeles and has offices in Boston, London, and Milan. Visit for more information about Payden's investment offerings, including US mutual funds and Irish-domiciled funds (subject to investor eligibility). This material reflects the firm's current opinion and is subject to change without notice. Sources for the material contained herein are deemed reliable but cannot be guaranteed. This material is for illustrative purposes only and does not constitute investment advice or an offer to sell or buy any security. Past performance is no guarantee of future results. For press requests, please contact:Kate Ennisennis@ Photos accompanying this announcement are available at:
Yahoo
15 hours ago
- Business
- Yahoo
Default ahead for California? Unlikely, says New Report From Payden & Rygel's California Municipal Social Impact Fund Team
LOS ANGELES, June 09, 2025 (GLOBE NEWSWIRE) -- Recent concerns over California's fiscal health—driven by declining initial public offering (IPO) volume, reduced federal funding risk, and rising costs—have prompted questions about the state's financial stability. However, after a thorough analysis, Payden & Rygel's market-leading municipal bond team believes the risk of a bond default or severe credit deterioration remains low. 'While we understand investors' concerns about the California economy, its capacity to generate adequate revenue to match spending levels and the potential impact on the state's municipal debt, we believe that although the revenue picture is softening, the outlook remains relatively stable over the next 1-2 years with potential credit rating deterioration limited to just one notch over that timeframe in a worst case scenario. Near term ratings will hinge on the final FY 26 budget that we expect Sacramento to pass by June 15th, otherwise lawmakers don't get paid,' say the report's authors, the Payden & Rygel's California Municipal Social Impact Fund team. 'We are also closely monitoring the evolution of entitlement spending reduction proposals at the federal level but ultimately expect Medicaid cuts to be less pervasive than currently feared,' they added. Here are six reasons to be optimistic: The 10th amendment prohibits states, including California, from filing for bankruptcy. While defaults are technically possible, California is nowhere near default based on current less than a month in the current fiscal year, tax revenues are weakening but remain strong, with Governor Newsom's recent May Revision projecting a relatively small $12 billion projected for next year. IPO activity, while down, is not a core revenue driver. Its recent decline reflects a normalization post-COVID stimulus, not a structural weakness. All three major credit agencies S&P, Moody's, and Fitch—rate California AA-/Aa2/AA, respectively, all with stable outlooks but we expect the ratings agencies to refine their views this summer following the finalization of the FY 2026 budget process by the end of gross domestic product (GDP) ranks #4 globally, recently surpassing Japan, underscoring a broad, diverse and innovative state economy with a deep employment base. Although reserves have dipped since 2023 due to pandemic fund drawdowns and budgetary uncertainty in FY 2023/2024 due to delayed tax receipts, they remain at comparatively strong levels historically that will grant state leadership time to navigate federal policy uncertainty, which Governor Newsom blames for a softening of service is low at 3–4% of governmental expenditures, and pension funding remains solid. Because of constitutional protections that prioritize education and debt payments, revenue would need to drop over 50% to threaten debt service. For context, State revenues dropped 15% in uncertainty, California retains healthy credit fundamentals with relatively stable ratings, manageable deficits, excellent access to liquidity and conservative budgeting assumptions that support bondholder confidence. In summary, while recent headlines surrounding tariffs, fiscal tightening, and economic uncertainty have contributed to heightened market anxiety, our base case remains firm: Although California's credit profile is softening, it continues to demonstrate resilience, supported by a vast and diversified tax base, substantial reserve levels across all governmental funds, and long-term liabilities that we consider both moderate and manageable. Here is a link to the full report. ABOUT PAYDEN & RYGEL With $165 billion under management, Payden & Rygel is one of the largest privately-owned global investment advisers focused on the active management of fixed income and equity portfolios. Payden & Rygel provides a full range of investment strategies and solutions to investors around the globe, including Central Banks, Pension Funds, Insurance Companies, Private Banks, and Foundations. This material reflects the firm's current opinion and is subject to change without notice. Sources for the material contained herein are deemed reliable but cannot be guaranteed. This material is for illustrative purposes only and does not constitute investment advice or an offer to sell or buy any security. Past performance is no guarantee of future results. For press requests, please contact:Kate Ennisennis@ Photos accompanying this announcement are available at This press release was published by a CLEAR® Verified in to access your portfolio
Yahoo
22-05-2025
- Business
- Yahoo
Payden U.S. Government Fund Turns 30
A conservative strategy with limited duration and zero corporate credit risk LOS ANGELES, May 22, 2025 (GLOBE NEWSWIRE) -- Payden & Rygel is proud to celebrate the 30-year anniversary of the Payden U.S. Government Fund (PYUSX), a bond fund that invests in U.S. Treasuries, government agency debentures and agency mortgage-backed securities with an average portfolio maturity of less than five years. The Payden U.S. Government was launched in 1995, and provided stable, short-term fixed income exposure in the wake of one of the bond market's most tumultuous periods. Just a year before, the Fed raised rates six times, causing bond prices to tumble across all sectors and durations. But the Payden team believed in its strategy to provide steady income while avoiding the volatility of longer-maturity bond funds and the credit risk of non-government issuers. Since that time, the fund has weathered good markets and bad, offering investors an opportunity to earn income without the turbulence of the bond market's riskier sectors. Today the bond market faces another challenging period, as changing tariff policies roil inflation expectations and the threat of stagflation looms. Gary Greenberg, Director at Payden & Rygel, who oversees the U.S. Government Fund, says that the fund's focus and approach are especially compelling in this environment. 'Right now, we believe intermediate maturity Treasuries provide attractive yields, and, on top of that, government agency mortgage-backed securities are trading at historically high spreads to Treasuries,' he explains. 'Our overweight in agencies will aim to provide additional yield as well as capital appreciation as risk premiums contract.' He adds that because the fund has no corporate credit risk, it is also well positioned to benefit from prospective Federal Reserve Bank interest rate cuts and provide a safe harbor if a recession ensues. ABOUT PAYDEN & RYGEL With $165 billion under management, Payden & Rygel is one of the largest privately-owned global investment advisers focused on the active management of fixed income and equity portfolios. Payden & Rygel provides a full range of investment strategies and solutions to investors around the globe, including Central Banks, Pension Funds, Insurance Companies, Private Banks, and Foundations. Independent and privately-owned, Payden is headquartered in Los Angeles and has offices in Boston, London, and Milan. Visit for more information about Payden's investment offerings, including US mutual funds and Irish-domiciled funds (subject to investor eligibility). Past performance does not guarantee future results. Investment returns and principal value will fluctuate, so investors' shares, when sold, may be worth more or less than their original cost. For the most recent month-end performance, which may be higher or lower than that quoted, visit our website at or call 800 572-9336. For more information and to obtain a prospectus or summary prospectus, visit or call 800 572-9336. Before investing, investors should carefully read and consider investment objectives, risks, charges, expenses and other important information about the Fund, which is contained in these documents. The Payden Funds are distributed through Payden & Rygel Distributors, member FINRA. This material reflects the firm's current opinion and is subject to change without notice. Sources for the material contained herein are deemed reliable but cannot be guaranteed. This material is for illustrative purposes only and does not constitute investment advice or an offer to sell or buy any security. Past performance is no guarantee of future results. This press release was published by a CLEAR® Verified 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
Time of India
06-05-2025
- Business
- Time of India
Apple prices first bond offering in 2 years
By Shankar Ramakrishnan and Matt Tracy Apple sold $4.5 billion worth of bonds late on Monday, its first offering in two years, and said it plans to use proceeds to repurchase stock and repay outstanding debt. The offering included $1.5 billion of three-year notes and $1 billion each of five, seven- and 10-year notes. Apple has $8 billion in debt maturing from May through November. Eight other issuers in the investment-grade primary market also kicked off an unusually active week with an estimated total of nearly $35 billion of new debt offerings. These include notes from Comcast, DTE Electric Co and General Motors. New bond supply is rising as credit spreads, or the premium companies pay over Treasuries, have rebounded in the weeks since U.S. President Donald Trump first announced harsh tariffs and then provided temporary relief. Many issuers had planned offerings sooner but were thrown off by the uncertainty of Trump's policies. They are rushing to market before the Federal Reserve meets on Wednesday to avoid the volatility that usually follows the Fed chair's comments after such monthly policymaking meetings. Demand is expected to remain strong as uncertainty pushed investors to seek safety in higher-rated bonds, analysts said. Apple's debt sale had order books well over the amount it sought, a source familiar with the matter said, noting that orders totaled $10 billion. The issuance rush follows six consecutive weeks of outflows from investment-grade funds, the longest streak since November 2022, noted Dan Krieter, director of fixed income strategy at BMO Capital Markets. "It's a pretty attractive space to lock in these all-in yields," said Natalie Trevithick, head of investment grade credit strategy at Los Angeles-based asset manager Payden & Rygel. "The issuance is a lot of high-quality names today, (and) a lot of it is just regularly planned issuance. There are probably a couple deals that got pushed back from April," Trevithick noted. Apple likely timed its bond sale to take advantage of tightening investment-grade bond spreads since Trump announced he would ease tariffs on various countries late last month. The average investment-grade bond spread was 106 basis points on Friday, the latest data shows, or three basis points below levels touched the day before. "Apple does tend to be pretty good at timing their deals around tight (spreads)," said a second investor, who declined to be named commenting on specific offerings. Payden & Rygel expects $12 billion to $13 billion of supply on Monday, with roughly $58 billion of investor demand, she added.
