Streetbeat News

Credit

FANG

VNOM

Viper Energy Partners LP (VNOM), a subsidiary of Diamondback Energy Inc (FANG), plans to acquire mineral and royalty interests from Warwick Capital Partners and GRP Energy Capital for $750 million and 9.02 million VNOM common units. The deal includes about 7,300 net royalty acres in the Permian Basin and other major basins. The transaction is expected to close by mid-Q4 FY23. VNOM expects the production to increase to ~4,750 bo/d (~8,500 boe/d) for 2024. VNOM provided FY24 preliminary guidance, expecting average daily production guidance of 25,500 to 27,500 bo/d (44,500 to 48,000 boe/d).

Portfolio Pulse from Lekha Gupta

September 05, 2023 | 2:11 pm

MA

Mastercard has issued a press release stating that it will not be raising interchange rates or network fees in the U.S. this fall and has no plans to do so. The company also clarified that the Authorization Optimizer service is the only Mastercard fee noted in a study cited by the Wall Street Journal, and it is not related to interchange rates or network fees. The press release also mentioned that Congress is considering legislation that could potentially lower costs for merchants but could have negative consequences for consumers.

Portfolio Pulse from Happy Mohamed

September 05, 2023 | 1:56 pm

CRVYY

EWH

China's real estate developer Country Garden Holdings Co. Ltd. (NYSE:CRVYY) narrowly avoided a default by making a last-minute interest payment on its $500 million bonds. Despite this, the company's financial standing remains precarious with a staggering debt load of $187 billion and weak sales. The company's struggles reflected in the broader market with the Hang Seng Index, tracked by the iShares MSCI Hong Kong Fund Index (NYSE:EWH), falling 2.06%.

Portfolio Pulse from Piero Cingari

September 05, 2023 | 1:29 pm

SPY

Federal Reserve Governor Christopher Waller stated that recent data gives the Federal Reserve some breathing room before making the next rate decision. This suggests that the Fed may not rush to increase interest rates.

Portfolio Pulse from Happy Mohamed

September 05, 2023 | 12:43 pm

OLMA

Olema Pharmaceuticals has announced a private placement of approximately $130M, issuing 13.2M shares at $9.84/share. The company also secured a new senior-secured credit facility of up to $50M.

Portfolio Pulse from Benzinga Newsdesk

September 05, 2023 | 11:35 am

EWA

The Reserve Bank of Australia has decided to keep the interest rate steady at 4.10% for September, which is in line with market expectations.

Portfolio Pulse from Benzinga Newsdesk

September 05, 2023 | 5:29 am

CTRYY

Country Garden Holdings Co. Ltd. (OTCPK: CTRYY), a leading property developer in China, is facing a potential debt default with a debt load of $187 billion. The company must settle a sum of $22.5 million in coupons by Sept. 6, marking the end of a 30-day grace period. Failure to meet this payment could lead to creditors declaring a default, potentially triggering a more significant crisis than the one experienced by China Evergrande Group. Despite fulfilling its obligations on a ringgit-denominated bond and securing an extension with domestic investors regarding yuan-denominated bonds, the company still owes dollar interest payments.

Portfolio Pulse from Piero Cingari

September 04, 2023 | 7:17 pm

ALL

BRK-A

VRSK

Major insurers including Allstate Corp, American Family Insurance, Berkshire Hathaway Inc., Nationwide, and Erie Insurance Group are reportedly reducing or eliminating coverage for extreme weather events due to climate change. This follows Hurricane Idalia, which caused industry-insured losses to onshore property estimated between $2.5 billion to $4 billion, according to Verisk Analytics, Inc. Insurers are excluding protection from weather events such as hurricanes, wind, hail, and wildfires in disaster-prone areas, raising premiums and deductibles.

Portfolio Pulse from Nabaparna Bhattacharya

September 04, 2023 | 4:37 pm

TIP

Economist David Rosenberg has warned of a potential recession, citing the biggest interest rate shock since 1981 and a structural slowdown in China. He also noted that Germany is on the brink of another recession. Despite these signals, inflation remains high, with the Federal Reserve maintaining a 'higher-for-longer' rate scenario. The iShares TIPS Bond ETF (TIP) ended down 0.52% at $105.20.

Portfolio Pulse from Shanthi Rexaline

September 03, 2023 | 3:37 pm

BIL

LQD

SGOV

Salman Ahmed, the global head of macro and strategic asset allocation at Fidelity International, warns of a potential recession in 2024 due to a wave of corporate debt refinancing. He suggests that the Federal Reserve's tightening of monetary policy and higher real interest rates could lead to an economic downturn. In anticipation, Fidelity International has adjusted its cash weighting and shifted to overweight. Cash-like ETFs such as SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) and iShares 0-3 Month Treasury Bond ETF (SGOV) saw a sharp influx of money in August. The firm also prefers investment-grade credit, as tracked by the iShares iBoxx $ Inv Grade Corporate Bond ETF (LQD), over high-yield credit.

Portfolio Pulse from Piero Cingari

September 01, 2023 | 8:44 pm