World News by Wild Rose

Emerging-market investors from Aegon USA Investment Management to JPMorgan Asset Management are dialing back their riskiest bond bets as the deepening selloff in global credit markets threatens to derail a stellar run for debt in the developing world.

As yields on US Treasuries soar past one high after the next, a reality is sinking in deeper across Wall Street and Washington: More than merely a bond-market slump, this might just be a fundamental shift. Myriad forces have combined to push the government’s borrowing costs higher — from $100-a-barrel oil and the AI spending boom, to yawning US budget deficits adding to a record $40 trillion debt load — all against a backdrop of a Federal Reserve bent on cooling inflation that’s run well past target for years. The selling pressure intensified this week as energy prices surged anew and data showed US businesses are humming along, giving an already hawkish central bank more reasons to keep raising interest rates. For a closer look, we speak with Kelsey Berro, Fixed Income Portfolio Manager at JPMorgan Asset Management. (Source: Bloomberg)

Colombia bonds: Bank of America raised the country’s external sovereign debt to overweight, citing a spending-led fiscal adjustment and lower deficits. The post Colombia Bonds Get Bank of America Overweight Call on 3.1% Primary Deficit appeared first on The Rio Times.

Jeff Rosenberg, portfolio manager of the systematic alternative ETF at BlockRock, joins Scarlet Fu and Tom Keene on "Bloomberg Money." He explains what's happening in bond markets and says investors should broaden to a 50/30/20 portfolio. (Source: Bloomberg)

Jeff Rosenberg, portfolio manager of the systematic alternative ETF at BlockRock, joins Scarlet Fu and Tom Keene on "Bloomberg Money." He explains what's happening in bond markets and says investors should broaden to a 50/30/20 portfolio. (Source: Bloomberg)

For Ariel Bezalel, thinking about investing in French bonds brings to mind Greece more than 15 years ago.

Switzerland’s Lombard Odier Investment Management has turned overweight US Treasuries for the first time in at least five years, seeing the higher yields as increasingly attractive compared to stocks.

Bonds steadied after a selloff that drove global yields to the highest in decades as the oil rally lost steam. The 10-year Treasury yield slipped three basis points to 5.17%, paring a two-day surge of more than 20 basis points. Bloomberg's Alice Gledhill reports. (Source: Bloomberg)

Faced with heavy debt burdens, governments across the world are finding creative ways to borrow money.

As yields on US Treasuries soar past one high after the next, a reality is sinking in deeper across Wall Street and Washington: More than merely a bond-market slump, this might just be a fundamental shift.

Billionaire Mukesh Ambani’s Reliance Industries Ltd. is planning to raise as much as 100 billion rupees ($1 billion) through local-currency bonds as early as next week, according to people familiar with the matter, in what would be its second debt offering this month.

Grace Peters, global investment strategy co-head at JPMorgan Private Bank, discusses the global selloff in bonds and why she sees equities as "the growth engine of the portfolio" even if rising yields place a "higher burden on earnings going forward." Peters speaks on Bloomberg Television. (Source: Bloomberg)

Global bonds were selling off again as traders ramped up bets on further Fed rate hikes after strong US economic data and weak demand at a Treasury auction pushed yields to multi-decade highs. Sree Kochugovindan, Senior Research Economist at Aberdeen Investments spoke to Bloomberg’s Jennifer Zabasajja on Horizons Middle East & Africa on the US growth. (Source: Bloomberg)

The Philippines is selling its first retail bonds of the year starting next week, opting for a shorter tenor as interest rates remain elevated.

Derivatives tied to Nvidia Corp. are now among the most traded in the US credit default swaps market, as investors seek to hedge their exposure to the firm’s debt in the wake of June’s $25 billion bond sale.

Jonathan Ferro, Lisa Abramowicz and Annmarie Hordern speak daily with leaders and decision makers from Wall Street to Washington and beyond. No other program better positions investors and executives for the trading day than "Bloomberg Surveillance." (Source: Bloomberg)

BNP Paribas Asset Management has been hedging its bullish bets on higher-yielding emerging-market bonds by shorting offshore Chinese interest-rate swaps, according to James McAlevey, head of global aggregate and absolute return.

Goldman Sachs Group Inc.’s traders are urging credit investors to take another look at some of the beaten-down bonds from Virgin Media O2 and VodafoneZiggo, just months after weaker earnings and mounting competition sent the telecom companies’ debt sliding.

Investors in the US Treasury market are shifting their focus to owning shorter-dated government bonds, a bet that the Federal Reserve will eventually emerge victorious in its fight against inflation.

Emerging-market investors are for now sticking with local-currency sovereign debt as surging Treasury yields dim the appeal of dollar-denominated developing-nation bonds.

Hong Kong plans to expand the Dim Sum bond market and develop the yuan-denominated gold and commodity markets to further enhance the city’s financial role and pricing power, Financial Secretary Paul Chan wrote in his weekly blog Sunday.

Investors are clamoring for the kind of debt companies are reluctant to sell now: longer-term bonds.

Shapoorji Pallonji Group’s dollar bonds rose to a record this week as investors bet a potential listing of Tata Sons Pvt. may help the Indian construction giant unlock value from its stake in the holding company and repay costly debt.

A measure of French bond risk rose to one percentage point, a sign of growing caution among investors given the country’s large budget deficit and ongoing political uncertainty.

Alessia Berardi, Head of Global Macroeconomics and Emerging Markets Strategy at the Amundi Investment Institute, discusses the outlook for global bonds after a week in which the Federal Reserve and Bank of Japan hiked interest rates, amid elevated energy prices and fiscal risks. Berardi joined "The Pulse with Francine Lacqua" on Bloomberg TV. (Source: Bloomberg)

The Bank of England’s plans to slow the pace of its bond sales will ease pressure on repo operations as well as providing a tailwind for strained long-end gilts, according to a Barclays Plc strategist.

RJ Corp., parent of one of the largest PepsiCo Inc. bottlers outside the US, plans to raise 10.1 billion rupees ($105 million) through local-currency bonds, according to people familiar with the matter.

Asian stocks and bonds were set to rise, tracking a Wall Street rally as a pullback in oil prices eased inflation concerns and helped revive appetite for risk. The yen was steady ahead of the Bank of Japan’s rate decision.

Bloomberg's Aashna Shah joins Scarlet Fu on "Bloomberg Real Yield." US state and local government bonds are near their cheapest levels relative to Treasuries in a year as heavy issuance and fading demand collide with a broader fixed-income selloff. (Source: Bloomberg)

Julian Emanuel, chief equity and quantitative strategist at Evercore ISI, discusses the market implications of the Federal Reserve hiking interest rates for the first time in three years. He explains why investors should “rebalance a little bit” from stocks into fixed income. (Source: Bloomberg)