Streetbeat News

Credit

EDV

TLT

The IMF's April 2024 Global Financial Stability report highlights concerns over a small group of hedge funds' significant control over the U.S. Treasury futures market, potentially posing systemic risks. Leveraged hedge funds have increased short positions in Treasury futures, exploiting price discrepancies and using borrowed money, raising financial stability concerns. The concentration of leverage and control in the market is significant, with a few funds holding substantial positions. The U.S. Treasury bond performance has been weak, with the iShares 20+ Year Treasury Bond ETF (TLT) and the Vanguard Extended Duration Treasury ETF (EDV) experiencing declines. The IMF also forecasts a rising U.S. debt-to-GDP ratio, reaching 134% by 2029.

Portfolio Pulse from Piero Cingari

April 18, 2024 | 8:57 pm

INSG

Inseego Corp. has voluntarily paid off and terminated its asset-backed loan facility with Siena Lending Group to enhance capital structure flexibility and reduce financing costs. This move eliminates the monthly fees and interest expenses on a principal amount of $8.5 million, saving the company $1.9 million in 2023 alone. With improved liquidity and financial performance, Inseego believes it can meet its working capital needs more efficiently. The company also paid termination fees and an exit fee to South Ocean Funding, LLC and North Sound Ventures, LP, affiliates holding over 5% of Inseego's stock.

Portfolio Pulse from Benzinga Newsdesk

April 18, 2024 | 8:12 pm

TLT

UTEN

Treasury yields on the 10-year note have reached 4.70%, the highest since early November 2023, amid inflation and strong economic data, challenging expectations of Federal Reserve rate cuts. Fed Chair Jerome Powell's recent comments added to market concerns, not supporting a quick return to the Fed's 2% inflation target. This situation has negatively impacted Treasury-related ETFs, with UTEN and TLT experiencing significant declines in April. Vanguard's Ales Koutny warned that yields surpassing 4.75% could lead to a severe market sell-off, potentially pushing rates to or beyond 5%. Despite this, some investors have shown optimism, as indicated by a successful 20-year Treasury auction and a shift towards net long positions in Treasuries for the first time since March.

Portfolio Pulse from Piero Cingari

April 18, 2024 | 4:26 pm

HASI

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (HASI) has successfully amended and extended its corporate unsecured credit facilities, increasing the total capacity to $1.625 billion. This expansion includes an increase in the CarbonCount-Based Revolving Credit Facility to $1.25 billion, maintaining the term loan at $250 million, and raising the CarbonCount Green Commercial Paper Note Program to $125 million. The extensions of these facilities aim to address upcoming 2025 maturities and enhance funding flexibility, with interest rate incentives linked to environmental performance metrics.

Portfolio Pulse from Benzinga Newsdesk

April 17, 2024 | 8:33 pm

DFS

Discover Financial Services reported a Q1 provision for credit losses of $1.5B, marking an increase of $395M from the previous year.

Portfolio Pulse from Benzinga Newsdesk

April 17, 2024 | 8:20 pm

BAC

CFG

KRE

PNC

USB

WFC

XLF

Investor reactions to U.S. bank Q1 earnings have been mixed, with some stocks declining and others gaining. Citigroup, Wells Fargo, Bank of America, PNC Financial, Citizens Financial Group, and U.S. Bancorp reported varying results, impacting their stock prices differently. The SPDR Financial Select Sector ETF and the SPDR S&P Regional Banking ETF have seen declines. JPMorgan Chase analysts predict a challenging quarter ahead for banks, with a decline in net interest income and weak loan performance. The focus is on banks' ability to reduce deposit costs amid potential Federal Reserve rate cuts.

Portfolio Pulse from Surbhi Jain

April 17, 2024 | 8:15 pm

PLCE

Children's Place Inc (NASDAQ:PLCE) shares surged after announcing a new $90 million financing agreement with majority shareholder Mithaq Capital SPC. This unsecured, subordinated term loan, expected to be funded by April 19, 2024, aims to improve liquidity and will be used to repay an existing $50 million loan and for general corporate purposes. The loan, maturing on April 16, 2027, features interest at SOFR plus 4.00% per annum, with deferred payments until April 30, 2025. Since February 29, 2024, Children's Place has received $168.6 million in funding from Mithaq.

Portfolio Pulse from Shivani Kumaresan

April 17, 2024 | 2:50 pm

AILE

iLearningEngines, Inc. (NASDAQ:AILE) announced additional funding through a Loan and Security Agreement with East West Bank, bringing total gross proceeds from its business combination with Arrowroot Acquisition Corp. to approximately $92.8 million. The new senior secured revolving credit facility, worth up to $40 million, will support iLearningEngines' growth plans following its successful public offering.

Portfolio Pulse from Benzinga Newsdesk

April 17, 2024 | 1:24 pm

RGLD

Royal Gold, Inc. (RGLD) announced its 2024 guidance, expecting total sales of gold between 215,000–230,000 oz, silver 3.2M–3.8M oz, copper 14M–16M lb, and other metals generating $17M–$20M. The company anticipates DD&A to be $141M–$157M with an effective tax rate of 17%–22%. Key assumptions include normal-course lag in metal deliveries, deferral of silver deliveries from Pueblo Viejo, and impacts from various mining operations. Royal Gold also completed repayments totaling $125 million on its revolving credit facility, reducing the outstanding amount to $125 million.

Portfolio Pulse from Benzinga Newsdesk

April 17, 2024 | 1:17 pm

MCHI

Chinese exporters at the Canton Fair are facing challenges despite China's 5.3% economic growth in Q1, including a decline in exports and producer prices. Increased economic and political tensions with the U.S., global trade slowdowns, and manufacturing overcapacity are key issues. Some sectors, like high-tech, remain optimistic due to government support. Trade tensions could worsen with potential U.S. tariffs and blacklisting of Chinese companies. The iShares MSCI China ETF (MCHI) saw a 1.02% dip.

Portfolio Pulse from Benzinga Neuro

April 17, 2024 | 12:58 pm