Investors are going nuts over the riskiest European bonds

Andrew Kelly/Reuters US Treasury Yield v. Euro “Junk Bond” Yield. A new record in central-bank engineered absurdity.  US Treasury Securities with longer maturities fell Tuesday morning, with the 10-year Treasury yield rising above 2.37% early on and currently trading at 2.34%. This is still low by historical standards, and it’s still in denial of the Fed’s monetary […]

Banks are cutting back on lending to the riskiest borrowers (TRU)

John Moore/Getty Banks are scaling back on lending to Americans with the lowest credit scores, according to a study from TransUnion.  Lenders processed fewer new personal loans, auto loans, and credit cards for subprime borrowers year-on-year in Q2 for the first time since 2012. Lenders tightened their standards after the housing crisis a decade ago following […]

Here’s why the riskiest “tail” of the high yield market is so important

REUTERS/Brendan McDermid In fixed income, and particularly non-investment grade credit, one area to consider as a differentiation point between managers (whether active or passive) is in the use and management of stressed and distressed credit. Rather than use credit ratings, which can be stale and backward-looking, we use a market-based definition that flags positions based […]