Streetbeat News

Credit Ratings

SPY

Federal Reserve Chairman Jerome Powell indicated that the policy interest rate is close to or at its peak for the current cycle, but the Fed is prepared to tighten policy further if necessary. The Fed aims to maintain a restrictive policy stance until it is confident that inflation is on a path to its 2% target.

Portfolio Pulse from Benzinga Newsdesk

December 13, 2023 | 7:38 pm

SPY

U.S. rate futures are pricing in over 100 basis points of rate cuts in 2024 after the Federal Reserve's latest decision. This outlook remains largely unchanged from the expectations set prior to the Fed's statement, according to LSEG's Fedwatch.

Portfolio Pulse from Benzinga Newsdesk

December 13, 2023 | 7:08 pm

BTC

USDT

S&P Global Ratings assigned a 'constrained' stability assessment to Tether (USDT) due to transparency concerns in reserve management and asset composition. The '4' rating reflects the lack of detailed information about custodians, counterparties, and bank account providers for USDT's reserves. Tether's reserves include U.S. treasury bills and cash equivalents, but also higher-risk assets with limited disclosure, subjecting them to credit, market, interest rate, and foreign currency risks. The rating could improve with increased disclosure and a shift to lower-risk assets, or enhanced regulation. Conversely, a shift to higher-risk assets could worsen the assessment.

Portfolio Pulse from Murtuza Merchant

December 12, 2023 | 10:06 pm

WBA

Walgreens Boots Alliance Inc. is considering a potential exit from its UK-based Boots drugstore chain, which could be valued at about £7 billion. The company is exploring options, including a London IPO, and may invite fresh offers for Boots. The process is expected to start next year at the earliest. Walgreens, now in cost-cutting mode under new CEO Tim Wentworth, had its credit rating cut to junk by Moody's due to high debt. The company previously attempted to sell Boots in 2022 but abandoned the effort due to unsatisfactory valuations and a turbulent credit market.

Portfolio Pulse from Benzinga Newsdesk

December 12, 2023 | 5:32 pm

SPY

Fitch Ratings has released an outlook report indicating that state and local U.S. governments are in a strong fiscal position, with a lower likelihood of a recession occurring in 2024. This assessment could influence investor sentiment regarding the stability of municipal bonds and related investments.

Portfolio Pulse from Benzinga Newsdesk

December 11, 2023 | 8:24 pm

MRMD

TCNNF

TRSSF

VEXTF

The Viridian Credit Tracker model shows that credit quality in the cannabis industry has declined due to increased leverage from debt financing and rising interest rates. Trulieve (TCNNF) and TerrAscend (TRSSF) have improved their credit rankings, while MariMed (MRMD) and Vext (VEXTF) have seen declines. The model assesses credit quality based on liquidity, leverage, profitability, and size, and tracks capital raise and M&A activity in the cannabis sector. Companies that manage cash flow and credit quality effectively are expected to benefit from future market upswings.

Portfolio Pulse from Viridian Capital Advisors

December 11, 2023 | 7:02 pm

AAPL

AMZN

FXY

GLD

GOOG

JPM

META

MSFT

NVDA

QQQ

SLV

SPY

TSLA

USO

The Bank of Japan's (BOJ) potential shift away from yield control is causing significant movement in the yen and impacting global stock markets, including the U.S. The yen's rise is affecting strategies that involve borrowing in yen to invest in U.S. markets. JPMorgan Chase CEO Jamie Dimon expressed a desire to shut down cryptocurrencies if possible. U.S. jobless claims came in slightly below consensus, which may influence the Fed's rate decisions. European GDP contraction supports the expectation of rate cuts. Positive early money flows are seen in major tech stocks, while mixed flows are observed in SPY and QQQ ETFs. Gold and oil are seeing buying interest due to the yen's move. Bitcoin experiences a pullback after recent retail investor enthusiasm. The Arora Report advises investors to maintain a protection band strategy to balance risk and opportunity.

Portfolio Pulse from The Arora Report

December 07, 2023 | 6:00 pm

FXI

Moody's Investors Service has instructed its China-based staff to work from home and advised Hong Kong analysts to avoid travel to mainland China. This follows Moody's decision to downgrade China's sovereign credit rating outlook from neutral to negative. The move is seen as a precaution against potential government inspections. The iShares China Large-Cap ETF (FXI) has dropped 3.8% this week, coinciding with Moody's rating action.

Portfolio Pulse from Piero Cingari

December 07, 2023 | 5:02 pm

A Bankrate survey reported by The Hill indicates that 60% of Americans believe the economy is in a recession, despite strong job growth and economic expansion. This sentiment spans across generations and income levels. Economic experts, however, have a positive outlook, contrasting with the public's concern over affordability and financial security. Investment firms like BMO Capital Markets and Deutsche Bank predict a potential U.S. recession by the end of 2024, with varying forecasts for the stock market in 2024, including a potential downturn for the S&P 500.

Portfolio Pulse from Benzinga Neuro

December 07, 2023 | 8:22 am

BXMT

Carson Block, founder of Muddy Waters, stated in a CNBC interview that Blackstone Mortgage Trust (BXMT) is at risk of liquidity issues.

Portfolio Pulse from Benzinga Newsdesk

December 06, 2023 | 6:08 pm