LONDON, Sept 18- Investors are starting to price the risk of Russia's credit rating falling to junk if Western sanctions and Moscow's response plunge the economy into recession and deplete its $450 billion reserves. Moody's, which rates Russia Baa1 or three notches above junk, said this week that the latest sanctions were credit negative.» Read More
Emerging market bonds have been hot this year, erasing price falls following last year's "taper tantrum," but some say the rally may be getting old.
Yields on high-yield bonds already don't live up to their name, but some believe they could fall further despite expectations interest rates will rise.
Some of the biggest investors have started to pull back from riskier fixed-income assets even as the Federal Reserve keeps on a green light for risk.
WASHINGTON, July 1- Moody's pushed its rating on Puerto Rico's debt deeper into junk territory on Tuesday and prices of the island's troubled electric authority's bonds plunged as investors awaited word on whether they would receive a scheduled payment on the securities.
While crying, "Bubble!" has been a cottage industry for some pundits, you can argue that high yield is starting to look, well, bubbly.
Interest rates and whether bonds are expensive may be up for debate, but some are tipping bond picks, with emerging Europe among the favorites.
While bonds' thin spreads over Treasurys have spurred concerns investors may be overpaying for yield, some analysts say low payouts may be justified.
Despite all the anticipation of money fleeing fixed income and dashing toward equities, bonds continue to get a bid.
May 22- After Detroit filed for bankruptcy last summer, portfolio managers at Eaton Vance municipal bond funds saw a gem hidden in the plumbing of the beleaguered Midwestern city. Eaton Vance's payoff is just one example of the recovery of municipal junk bond funds so far this year, after a tough 2013..
Yield-hungry bond investors have pushed ever further into high-risk territory and Pimco sees five warning signs bond markets are getting too frothy.
With the U.S.'s zero interest rate era nearing its end, some analysts worry that bonds on the short end of the yield curve may face a selloff.
Bond-fund managers at Loomis Sayles, Fidelity and Eaton Vance are trouncing their benchmarks and almost all their peers by taking advantage of asset allocation rules that permit as much as 35 percent of their holdings in stocks.
Alan Miller, founding partner and CIO of SCM Private, says he is buying emerging market debt because it has higher yields, shorter duration and is investment grade.
BRASILIA, April 29- The Brazilian government will raise taxes on beers, sodas and other beverages in a move that will raise an extra 1.5 billion reais in revenue to help meet its elusive fiscal savings goal. The rapid erosion of the country's finances led Standard& Poor's to cut Brazil's debt rating closer to junk status in March.
LONDON, April 25- Investors are switching their attention back to developing countries' debt after flirting with U.S. and European junk bonds during a year of turbulence in emerging markets.
Bonds are pretty clearly a bad job, with returns relatively meager and prices set to fall, but yield-seeking investors keep pushing money their way.
April 10- Several large hedge funds doubled down on Puerto Rico in last month's giant bond sale despite the U.S. territory's financial struggles, the Wall Street Journal reported, citing confidential documents reviewed by the newspaper.
Greece hired a group of banks to manage the sale of a 2 billion euro five-year bond on Thursday, Thomson Reuters market service IFR reported, with sources suggesting the bonds will be issued sometime in April. Standard and Poor's and Fitch rank Greece six notches below investment grade at B+.
COSTA DO SAUIPE, Brazil, March 28- Brazil's credit rating could come under pressure again if its economy continues to grow at a slow pace during the next five years or so, analysts with Standard& Poor's said after the ratings agency downgraded the country to near junk status this week.
China's property sector, already a nagging economic risk, may become a victim of the yuan's unexpected weakening as developers' debt costs may rise.