Streetbeat News

Credit

MSTR

Peter Schiff predicts a significant crash for Bitcoin, attributing it to speculative ETF buyers selling off, leading to a lack of liquidity. He also foresees a potential bankruptcy for MicroStrategy (NASDAQ:MSTR) due to its heavy investment in Bitcoin. Schiff criticizes the blockchain and Bitcoin as a 'Digital Ponzi' scheme and questions MicroStrategy's financial strategies. Despite Bitcoin's recent losses, analysts predict its holdings will increase significantly by 2025.

Portfolio Pulse from Khyathi Dalal

April 11, 2024 | 9:53 pm

JEF

Jefferies Financial Group has announced the pricing of $1.50 billion in senior notes at a 6.200% interest rate, due in 2034. This move indicates the company's strategy for raising capital and managing its long-term debt profile.

Portfolio Pulse from Benzinga Newsdesk

April 11, 2024 | 9:34 pm

COF

IYG

JPM

XLF

Credit card delinquencies in the U.S. hit a 12-year high in Q4 2023, according to the Philadelphia Fed. The report indicates a troubling trend for consumers and credit card issuers, with nearly 3.5% of users carrying balances past due dates. Credit card companies are responding by lowering credit limits, with the median limit for new cards dropping from $3,368 to $3,000. Mastercard and Visa are raising fees to offset losses from an antitrust settlement. The largest credit card issuers, including JPMorgan Chase, Capital One, Citigroup, Discover, Bank of America, and American Express, are likely to be affected. Capital One's planned acquisition of Discover could create the largest credit card company in the U.S. ETFs like iShares US Financial Services ETF and Financial Select Sector SPDR Fund, with significant exposure to these companies, could also be impacted.

Portfolio Pulse from Natan Ponieman

April 11, 2024 | 8:39 pm

RUN

Sunrun Inc (NASDAQ:RUN) shares dropped 6% to $11.56 due to mixed inflation data affecting American producers. The Producer Price Index (PPI) did not meet expectations, causing uncertainty about interest rate cuts, while the underlying gauge showed a 2.1% year-on-year increase, the highest in nearly a year. This situation is critical for Sunrun as rising inflation and potential interest rate hikes could increase borrowing costs, making solar installations more expensive and potentially reducing demand for Sunrun's services.

Portfolio Pulse from Henry Khederian

April 11, 2024 | 7:10 pm

IYR

MBB

SCHH

VMBS

VNQ

XLRE

Mortgage rates have surged, with the 30-year fixed-rate mortgage reaching 6.88%, raising concerns about the housing market's future. Persistent inflation and Federal Reserve policies are blamed for the rate hikes. This situation poses challenges for homebuyers, facing high home prices and limited inventory. However, it could benefit investors in real estate ETFs like VNQ, SCHH, XLRE, and IYR due to rising home prices, while those in mortgage ETFs like MBB and VMBS should be cautious.

Portfolio Pulse from Surbhi Jain

April 11, 2024 | 5:32 pm

NKGN

NKGen Biotech has successfully closed a $5 million second lien convertible loan funding. This financial move could potentially impact NKGen Biotech's future operations and growth strategies.

Portfolio Pulse from Benzinga Newsdesk

April 11, 2024 | 12:13 pm

RDNT

RadNet has successfully priced and upsized its previously announced refinancing transaction, which includes both a term loan and a revolving credit facility. This move is aimed at improving the company's financial flexibility and potentially reducing interest expenses.

Portfolio Pulse from Benzinga Newsdesk

April 11, 2024 | 10:04 am

EXAS

Exact Sciences announced a debt exchange transaction and private placement of convertible senior notes. The company will issue $620.7 million in new 1.75% Convertible Senior Notes due 2031 in exchange for retiring $359.7 million of existing 0.375% notes due 2028 and receiving $266.8 million in cash. The transaction is expected to close on April 17, 2024.

Portfolio Pulse from Benzinga Newsdesk

April 11, 2024 | 10:03 am

TIP

Former Treasury Secretary Larry Summers warned that a rate cut in June could be a 'dangerous and egregious error' following hotter-than-expected March inflation data. Consumer prices rose more than anticipated, with core and super core inflation rates also exceeding forecasts. Summers highlighted the risk of ignoring inflation pressures, especially with the economy growing faster than potential and short-term Treasury rates exceeding longer-term rates. This suggests the neutral rate is above the 2.6% level used by the Fed. The futures market has since adjusted, showing an 83% probability of the Federal Reserve maintaining the current rate. The iShares TIPS Bond ETF (TIP) fell 0.96% to $105.84.

Portfolio Pulse from Shanthi Rexaline

April 11, 2024 | 7:39 am

PSA

Public Storage's stock trades lower following the pricing of its public offering of senior notes and an increase in Treasury yields due to higher-than-expected March inflation data.

Portfolio Pulse from Benzinga Newsdesk

April 10, 2024 | 3:28 pm