Bonds supporters aren't happy with Warren Buffett, as the Oracle of Omaha has let it be publicly known that at the yields offered, along with the growing risk, he isn't interested in buying any bonds. He even went so far as to say "bonds really should come with a warning label."
One of the premiere experts in bonds - Pacific Investment Management Co.'s Bill Gross - in January, raised his holdings in Treasuries to the highest level since summer 2010, rebalancing the portfolio.
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Showing posts with label Bonds. Show all posts
Showing posts with label Bonds. Show all posts
Saturday, June 1, 2013
Thursday, June 3, 2010
BP (NYSE:BP) Could Default on Debt
The price of BP (NYSE:BP) bonds has plunged, an event that markets believe is the prelude to the company possibly defaulting on its debt obligations.
It seems what was propping the bonds up was the hopes the "top kill" effort to plug the oil leak would succeed, since that failed, the bottom has fallen out of the price of BP's bonds.
Consequently, Fitch cut the rating of BP from AA+ to AA. Even so AA is still a top rating, but it gives us a look at what the near future will bring if costs of attempting to stop the flow of oil continues to rise.
That's why Fitch Ratings said there could be further downgrades if costs associated with the oil leak aren't abated.
It seems what was propping the bonds up was the hopes the "top kill" effort to plug the oil leak would succeed, since that failed, the bottom has fallen out of the price of BP's bonds.
Consequently, Fitch cut the rating of BP from AA+ to AA. Even so AA is still a top rating, but it gives us a look at what the near future will bring if costs of attempting to stop the flow of oil continues to rise.
That's why Fitch Ratings said there could be further downgrades if costs associated with the oil leak aren't abated.
Wednesday, March 31, 2010
Teck Resources (TSE:TCK-B) Bonds Investment Grade Again?
Teck Resources Bonds Investment Grade?
Although Teck Resources (TSE:TCK-B) hasn't officially been designated as having an investment-grade bond rating, the market has already spoken to the issue, and in the view of the market Tech has already reached that stage.
Moody's did increase the credit rating of Tech to Ba1 in the early part of March, one level below investment grade.
When compared to the corporate bond market in the U.S. at the investment-grade level, Teck does well, with their five-year, 9.75 notes falling to 4.51 percent from 11.2 percent since May 5, while their American counterparts dropped to 4.58 percent.
Moody's said the reason they upgraded Tech Resources credit was the significant reduction in debt and sellling of assets.
Teck Resources Bonds Investment Grade
Although Teck Resources (TSE:TCK-B) hasn't officially been designated as having an investment-grade bond rating, the market has already spoken to the issue, and in the view of the market Tech has already reached that stage.
Moody's did increase the credit rating of Tech to Ba1 in the early part of March, one level below investment grade.
When compared to the corporate bond market in the U.S. at the investment-grade level, Teck does well, with their five-year, 9.75 notes falling to 4.51 percent from 11.2 percent since May 5, while their American counterparts dropped to 4.58 percent.
Moody's said the reason they upgraded Tech Resources credit was the significant reduction in debt and sellling of assets.
Teck Resources Bonds Investment Grade
Saturday, March 20, 2010
Marc Faber: New Gold Standard Already Created
Marc Faber on Gold
Marc Faber recently sad in an interview that we have already entered into a new gold standard; one created by the free market and not anyone else.
Faber cited the increasing acquisition of physical gold by investors as well as the growing number of exchange traded funds.
In his interview Faber recommended that people flee cash and bonds over the next decade and buy gold and some equities.
Gold will continue to rise in value against all paper currencies which are depreciating said Faber.
Marc Faber recently sad in an interview that we have already entered into a new gold standard; one created by the free market and not anyone else.
Faber cited the increasing acquisition of physical gold by investors as well as the growing number of exchange traded funds.
In his interview Faber recommended that people flee cash and bonds over the next decade and buy gold and some equities.
Gold will continue to rise in value against all paper currencies which are depreciating said Faber.
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