Streetbeat News

Credit Ratings

USHY

Investors are pouring capital into junk corporate bonds, betting on Federal Reserve rate cuts. The iShares Broad USD High Yield Corporate Bond ETF (USHY) has seen record inflows, but stretched valuations pose risks if rate cuts don't materialize.

Portfolio Pulse from Piero Cingari

July 29, 2024 | 8:40 pm

CVS

JPM

WBA

WMT

Walgreens Boots Alliance (WBA) is considering issuing high-yield bonds to manage its downgraded debt obligations, with JP Morgan Chase (JPM) gauging investor interest. The potential bond sale would come with a yield around 7.5%, significantly higher than previous rates. This follows Walgreens' downgrade to junk status by Moody's and S&P Global Ratings. WBA shares rose by 2.24% following the news.

Portfolio Pulse from Nabaparna Bhattacharya

July 25, 2024 | 6:41 pm

JPM

WBA

JPMorgan Chase & Co. is exploring investor interest in a potential high-yield bond sale by Walgreens Boots Alliance Inc. to refinance its near-term debt maturities. This would be Walgreens' first bond sale since its downgrade to junk status.

Portfolio Pulse from Benzinga Newsdesk

July 25, 2024 | 4:22 pm

AMC

S&P has downgraded AMC Entertainment to 'SD' following a recent transaction. This downgrade reflects concerns about the company's financial stability.

Portfolio Pulse from Benzinga Newsdesk

July 23, 2024 | 8:19 pm

EWW

SPY

Fitch has affirmed Mexico's Long-Term Foreign-Currency IDR at 'BBB-' with a stable outlook. The agency notes that proposed judicial reforms could negatively impact the country's institutional profile. There is uncertainty over the incoming administration's efforts to narrow the deficit, but debt/GDP remains stable. Economic activity is expected to pick up for the rest of the year after a weak Q1, with a slight slowdown anticipated next year.

Portfolio Pulse from Benzinga Newsdesk

July 18, 2024 | 3:48 pm

SPY

Federal Reserve Governor Christopher Waller indicated that the time to cut the policy rate is approaching, driven by positive inflation data. However, uneven inflation data could make the timing of the rate cut uncertain. Waller also noted a low probability of significant inflation resurgence in the second half of the year, and current data suggests a 'soft landing' with less unemployment trade-off.

Portfolio Pulse from Benzinga Newsdesk

July 17, 2024 | 1:36 pm

SPY

Fed's Kugler suggests that easing monetary policy later this year may be appropriate if economic conditions remain favorable. He notes that risks to inflation and employment have become more balanced. If the labor market cools significantly, interest rate cuts may happen sooner. However, if inflation data does not show progress towards the 2% target, rates may be held steady longer.

Portfolio Pulse from Benzinga Newsdesk

July 16, 2024 | 6:46 pm

MCO

Moody's Corporation (NYSE:MCO) has fully acquired Global Credit Rating Company Limited (GCR), expanding its investment in Africa's domestic credit markets. The financial terms were not disclosed, and the acquisition will not materially impact Moody's 2024 financial results.

Portfolio Pulse from Benzinga Newsdesk

July 08, 2024 | 12:06 pm

KRG

Kite Realty Group Trust (KRG) has been upgraded by S&P to a BBB rating with a stable outlook.

Portfolio Pulse from Bill Haddad

June 28, 2024 | 8:17 pm

LEVI

NKE

WBA

Economists have endorsed a potential September rate cut by the Federal Reserve as the PCE price index drops to its lowest level since March 2021. The futures market predicts a 52 basis point reduction in the fed funds rate by December 2024, with a 68% probability of the first cut in September. Experts criticize the Fed for being late in adjusting rates and highlight the impact on consumer discretionary companies like Nike, Levi Strauss, and Walgreens Boots Alliance.

Portfolio Pulse from Piero Cingari

June 28, 2024 | 3:46 pm