Brazilian fixed income debt may be attractive in raw yield terms, and yet the specter of more rate rises is a worry.
The levels of fixed-rate debt and floating-rate debt should come down, and the coverage ratios should improve in the next year or two, says General Growth Chief Financial Officer Bernard Freibaum Bernard Freibaum in a conference call with investors today.
The levels of fixed-rate debt and floating-rate debt should come down, and the coverage ratios should improve in the next year or two, says General Growth Chief Financial Officer Bernard Freibaum in a conference call with investors today.
And as the FT points out this morning, for the first time ever UK pension funds now hold more bonds than equities: the Pensions Regulator shows that UK funds hold 43% of their assets in gilts and fixed-interest debt compared with just under 39% in equities.
Based on that, many companies have refinanced their floating rate debt into fixed rate loans.
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One route around this blockage is for central banks to lend directly to firms by purchasing their short-term debt at fixed rates, as the Fed started to do this week.
The way most deals are arranged, investors get stock or convertible debt at a fixed price that is lower than the market price.
That paper suggested companies shouldn't think of their capital structures as fixed--say 40% debt, 60% equity.
China is the biggest holder of US debt outside of US fixed income investors.
Example: Lenders could face liability for pushing balloon mortgages to retirees living on a fixed income, or for committing debt-laden borrowers to loans with monthly payments that exclude taxes and insurance.
For one thing, it is hard to know how much companies have in fact lengthened the maturity of their debts because the interest-rate swap market allows them to swap those fixed bond payments into cheaper floating debt, a popular strategy in the investment-grade market.
Gone are the days when fixed income investors could buy Brazil sovereign debt at double digit yields.
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Companies have been able to harvest billions from newly floated and refinanced debt, courtesy of receptive fixed income farms.
Private businesses, which number about 27 million and account for over 54 percent of aggregate non-residential fixed investment, need clarity on how the debt will be reined in.
Fixed income fund managers piled into local currency debt of the big emerging markets for the third straight week, according to fund trackers at EPFR Global in Cambridge, Mass.
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Five years ago Russia had a big budget deficit, a fixed exchange rate and a lot of high-coupon debt.
The problems are especially acute in the fixed-income department of the investment bank, where debt products are issued and traded.
Certain types of fixed income funds are required to only hold AAA rated debt, but US Treasurys are considered a separate asset class.
Vehicles like Triaxx are coming back in style as large, institutional investors look to juice fixed-income returns while corporate and U.S. debt yields hover near record lows.
But now Europe's other big phone firms have regained lost ground, paying down much of their debt and piling up cash earned from their vast fixed-line businesses.
Although the investments resembled bonds, paying buyers a fixed interest rate for taking on the default risk of corporate debt, the products invested in synthetic collateralized debt obligations held by Lehman.
One of the biggest tail risks, Garthwaite says, is a eurozone break-up, something investors have been worrying about as the debt crisis shows no sign of abating or being fixed quickly.
It would have massive implications for retirees living on a fixed income who have nearly all of their investments in US government debt.
The Fed has restored family wealth to its pre-recession high-water mark and individual and institutional debt-equity ratios still rest too heavy in the fixed income sector.
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Apart from student loans, Discover also provides personal loans which are unsecured loans with fixed interest rates, fixed terms and fixed payments, and are primarily intended to help customers consolidate existing debt, although they can be used for any reason.
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At this point, fixed interest rates, even for high yield (junk-rated) debt, are near historic lows.
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Ironically, the turning-point came earlier this year, when it was suggested that, as the supply of Treasury bonds dwindles thanks to the federal government's surplus, mortgage-agency debt could replace them as the benchmark used for pricing other fixed-income securities.
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