Streetbeat News

Credit

PDCC

Pearl Diver Credit Company Inc. has launched its first fixed-income security, PDPA, an 8.0% Series A Term Preferred Stock, maturing on 12/31/2029. PDPA offers an 8.00% cumulative annual dividend and is trading at $24.88 with a Yield to Maturity of 8.12% and Yield to Call of 8.26%. Despite lacking a credit rating, PDPA's asset coverage covenants and underwriter credit spreads align with established CLO Equity sector companies.

Portfolio Pulse from

January 05, 2025 | 10:00 am

VLVLY

Volvo A.B. is facing challenges with stagnation in Europe and declining U.S. orders, potentially leading to a downturn in 2025. The company's 6.6% dividend yield may be unsustainable due to insufficient free cash flows, possibly requiring financing or dividend reduction. Despite these issues, Volvo maintains a healthy capital structure with additional debt capacity.

Portfolio Pulse from

January 03, 2025 | 11:00 pm

HROW

Harrow, Inc.'s 11.875% Senior Notes due 2027 are attractive due to a low leverage percentage of 13.8%, indicating strong creditworthiness. The company funds operations through product sales, not debt, highlighting a sustainable business model. Products like VEVYE, IHEEZO, and Triesence show growth potential.

Portfolio Pulse from

January 03, 2025 | 9:00 pm

CEG

Constellation Energy is set to benefit from increased energy demand due to the AI revolution and data center growth, targeting a 13% annual EPS growth through 2030. The company is investing in nuclear and renewable energy, despite regulatory challenges. It has a strong financial position but a high valuation.

Portfolio Pulse from

January 03, 2025 | 7:45 pm

CNI

Canadian National Railway (CNI) is facing challenges such as high debt, increased operating expenses, and supply-chain disruptions, making it a less attractive investment at the moment.

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January 03, 2025 | 6:45 pm

STNE

StoneCo's stock has dropped 26% over the past three months due to a decline in total payment volume (TPV) in key accounts and an increase in non-performing loans (NPL). However, there is potential for recovery with growth in banking clients and an expanding credit portfolio.

Portfolio Pulse from

January 03, 2025 | 6:30 pm

IR

Ingersoll Rand is facing challenges due to increasing operating costs, high debt levels, and unfavorable foreign currency movements, making it a less attractive investment at the moment.

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January 03, 2025 | 5:45 pm

JBBB

The Janus Henderson B-BBB CLO ETF (JBBB) is expected to see its yield increase in 2025 due to a potential pause in interest rate cuts and credit spread widening. The ETF offers a diversified alternative to direct leveraged loan investments with low interest rate sensitivity and minimal default risks.

Portfolio Pulse from

January 03, 2025 | 4:00 pm

MUFG

MUFG Bank's senior Europe economist, Henry Cook, predicts four rate cuts from the ECB this year. He also anticipates the U.S. imposing new tariffs on the EU, which could influence the ECB's monetary policy decisions.

Portfolio Pulse from

January 03, 2025 | 8:45 am