Streetbeat News

Credit

STR

Sitio Royalties has priced an upsized $600M offering of senior notes due 2028. The notes will accrue interest at a rate of 7.875% per annum and were priced at par.

Portfolio Pulse from Benzinga Newsdesk

September 27, 2023 | 5:49 am

JPM

Economist Peter Schiff predicts a surge in 30-year fixed-rate mortgage rates to 9% by year-end, which could lead to a ballooning of the Federal Reserve's balance sheet due to insolvent banks offloading their mortgage-backed securities onto the Fed. This comes amidst concerns over rising interest rates and yields. JPMorgan Chase & Co.'s CEO, Jamie Dimon, has warned that a rise in Federal Reserve benchmark interest rates to 7% could lead to unprecedented financial stress.

Portfolio Pulse from Benzinga Neuro

September 27, 2023 | 1:12 am

ITA

LDOS

LMT

Lockheed Martin Corp. (LMT) shares have seen a decline of approximately 9% month-to-date due to the looming risk of a U.S. government shutdown. Moody’s Investors Service warned that a shutdown could negatively impact defense service contractors, potentially affecting liquidity. However, it also noted that major prime contractors like Lockheed Martin and Leidos Holdings, Inc. (LDOS) have strong capabilities to manage payment delays effectively. The iShares U.S. Aerospace & Defense ETF (ITA) also registered a 9% decline.

Portfolio Pulse from Piero Cingari

September 26, 2023 | 9:01 pm

DHC

OPI

RMR

Diversified Healthcare Trust (DHC) has announced changes to its Board of Trustees and executive leadership team, including the appointment of Phyllis Hollis as an Independent Trustee and Matthew Brown as CFO. DHC has also engaged B. Riley Securities as its financial advisor to address near term capital needs and pending debt maturities. DHC is currently not in compliance with debt incurrence covenants and has $700 million in debt maturing in 2024. The company is considering raising new capital and selling assets to address its capital needs.

Portfolio Pulse from Happy Mohamed

September 26, 2023 | 8:23 pm

OMF

BMO Capital Markets analyst James Fotheringham reiterated a Market Perform rating for OneMain Holdings, Inc. (NYSE:OMF) with a price target of $46. Despite macroeconomic uncertainties, Fotheringham is impressed by OMF's prudent management of credit and funding risks, improving credit, accelerating loan growth, and strong returns. The analyst forecasts a 49% RoTCE this year and expects higher quality loans to represent 65% of OMF's total portfolio by year-end.

Portfolio Pulse from Nabaparna Bhattacharya

September 26, 2023 | 8:22 pm

AMD

Advanced Micro Devices, Inc. (AMD) shares fell by 2.0% amid overall market weakness due to concerns about future rate hikes and lower-than-expected initial jobless claims data. AMD's profitability and valuation could be affected by rising interest rates as it relies on borrowing for research and development and capital investments. Higher interest rates could also reduce consumer spending on technology products, negatively impacting AMD's sales and earnings.

Portfolio Pulse from Henry Khederian

September 26, 2023 | 7:53 pm

AAPL

Apple Inc's shares are trading lower by 2.5% amid concerns about future rate hikes and lower-than-expected initial jobless claims data. Higher interest rates could increase the cost of borrowing for consumers, potentially reducing the affordability of Apple products and leading to lower sales and revenue. Additionally, rising interest rates could make it more expensive for Apple to finance debt, leading to higher interest expenses and reducing its net income.

Portfolio Pulse from Henry Khederian

September 26, 2023 | 7:51 pm

MSFT

Microsoft Corp (NASDAQ:MSFT) shares are trading lower by 2.2% amid overall market weakness and concerns about future rate hikes. Higher interest rates can increase Microsoft's borrowing costs, potentially reducing its profitability and causing investors to reevaluate the stock's value. The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting.

Portfolio Pulse from Henry Khederian

September 26, 2023 | 7:41 pm

SNAP

Snap Inc (NYSE:SNAP) shares are trading lower by 3.5% after HSBC initiated coverage on the stock with a Reduce rating and a $7.50 price target. The overall market weakness and concerns about future rate hikes following last Wednesday's FOMC statement and lower-than-expected initial jobless claims data are also contributing to the fall. The Federal Reserve maintained the federal funds rate within the 5.25% to 5.5% range at its September meeting.

Portfolio Pulse from Henry Khederian

September 26, 2023 | 7:21 pm

JPM

JP Morgan Chase & Co (NYSE:JPM) has decided to halt cryptocurrency-related transactions for its U.K. clients starting Oct. 16, due to concerns over rising fraudulent activities linked to cryptocurrencies. The bank's decision aligns with the cautious stance of many U.K. banks towards cryptocurrency transactions. The Financial Conduct Authority (FCA), the U.K.'s financial regulatory body, has had to mediate dialogues between banks and cryptocurrency entities due to the banking sector's hesitancy in serving the crypto industry.

Portfolio Pulse from Murtuza Merchant

September 26, 2023 | 6:49 pm