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TIP

Former Treasury Secretary Lawrence Summers, in a Bloomberg interview, suggested that the neutral monetary policy rate is higher than the Federal Reserve's estimate, potentially impacting expectations for future rate cuts. Summers criticized the absence of a neutral rate target and argued against cutting rates at the upcoming June meeting, despite financial markets pricing in rate cuts based on inflation trends. The iShares TIPS Bond ETF (TIP) remained unchanged in response to these comments.

Portfolio Pulse from Shanthi Rexaline

April 07, 2024 | 2:27 pm

AAPL

AMC

AMZN

NVDA

With interest rates at their highest in over two decades, investors are increasingly turning to corporate bonds, seeking higher yields and diversification from equities. Investment-grade bonds, issued by stable companies, offer safer investment options compared to high-yield bonds from riskier firms. Companies like Nvidia, Amazon, Apple, Eli Lilly, and Walt Disney are rated as investment grade, while AMC Entertainment, Office Property Income Trust, and Navient Corporation are considered speculative grade. The article lists the top 10 investment-grade corporate bonds with the highest yields as of April 2024, including issuers like Prospect Capital, Piedmont Office Realty Trust, Td Synnex Corp, Charter Communications, Vornado Realty Trust, Ford Motor Co, Monsanto (owned by Bayer A.G.), Vici Properties, Ally Financial, and Concentrix Corp.

Portfolio Pulse from Piero Cingari

April 05, 2024 | 4:24 pm

EFX

Worth AI and Equifax have entered a strategic partnership to enhance underwriting and risk management for small businesses. This collaboration will leverage Worth AI's AI-powered platform and Equifax's unique data, including business firmographics and credit attributes, to improve loan approval rates and processing times. The partnership aims to provide more comprehensive business credit scores and foster inclusivity by utilizing non-traditional signals for a more transparent underwriting process.

Portfolio Pulse from Benzinga Newsdesk

April 05, 2024 | 3:35 pm

LLY

Eli Lilly and Co (NYSE:LLY) is analyzed in comparison to its competitors in the Pharmaceuticals industry, focusing on financial metrics, market position, and growth prospects. Eli Lilly shows a premium valuation with a high P/E, P/B, and P/S ratios compared to industry averages. Despite this, the company demonstrates strong profitability with a higher ROE and significant revenue growth. However, concerns are raised due to its lower EBITDA, gross profit, and a higher debt-to-equity ratio, indicating potential financial vulnerability and operational inefficiencies.

Portfolio Pulse from Benzinga Insights

April 05, 2024 | 3:00 pm

GEO

GEO Group announced the pricing of a $1.275 billion senior notes offering, split between $650 million of 8.625% senior secured notes due 2029 and $625 million of 10.25% senior unsecured notes due 2031. The offering, along with a new term loan, is expected to yield net proceeds of approximately $1.67 billion, after initial costs.

Portfolio Pulse from Benzinga Newsdesk

April 04, 2024 | 9:32 pm

AMC

HYG

LUMN

OPI

SATS

U.S. high-yield corporate bonds are attracting investors with returns over 20% as interest rates remain high. The iShares iBoxx $ High Yield Corporate Bond ETF (HYG) has seen a 10% increase since October 2023. High-yield bonds, also known as junk bonds, are issued by companies with lower credit ratings and come with higher risks. The top 10 high-yielding bonds as of April 2024 include issues from AMC Entertainment Holdings (AMC), Hughes Satellite Systems Corp. (SATS), Dish Network Corporation, Lumen Technologies Inc. (LUMN), and Office Properties Income Trust (OPI).

Portfolio Pulse from Piero Cingari

April 04, 2024 | 6:59 pm

CAR

SQLV

XTN

Goldman Sachs analyst Lizzie Dove upgraded Avis Budget Group, Inc (NASDAQ:CAR) to Neutral from Sell, raising the target price to $130 from $118, citing a lean cost base, lower EV exposure, and a younger fleet mix as advantages. Despite a potential downside to 2025 estimates, the company's pricing strength and a benign competitive environment could provide tailwinds. Avis faces $4.1 billion in vehicle debt maturing this year and $6.7 billion in 2025, with expected interest expense pressure. Avis Budget Group stock is also accessible through SPDR S&P Transportation ETF (NYSE:XTN) and Royce Quant Small-Cap Quality Value ETF (NASDAQ:SQLV).

Portfolio Pulse from Nabaparna Bhattacharya

April 04, 2024 | 6:16 pm

SPY

Fed's Goolsbee comments on inflation moving sideways and reevaluates the possibility of rate cuts this year. Initially considering two rate cuts, he now questions if any should occur if inflation persists.

Portfolio Pulse from Benzinga Newsdesk

April 04, 2024 | 6:04 pm

GRFS

Grifols announced that adjustments made for cost savings, operational improvements, and synergies to its consolidated EBITDA under its credit agreement are not considered an alternative measure of performance. This clarification aims to provide transparency regarding its financial health and operational efficiency.

Portfolio Pulse from Benzinga Newsdesk

April 04, 2024 | 4:13 pm

SPY

Fed's Barkin expressed optimism that maintaining somewhat restrictive interest rates can bring inflation back to target without causing significant job losses, highlighting the economy's resilience. He acknowledged that tight monetary policy would slow the economy further but emphasized its lesser vulnerability.

Portfolio Pulse from Benzinga Newsdesk

April 04, 2024 | 4:11 pm