Streetbeat News

Credit Ratings

ET

Energy Transfer, a midstream operator, is a strong investment opportunity with a distribution yield nearing 7%. The company plans $5 billion in growth capex for 2025, supported by a favorable regulatory environment and solid BBB credit ratings.

Portfolio Pulse from

February 14, 2025 | 12:45 pm

TUIFF

TUI has shown a strong recovery post-COVID-19 with a 22% return over the past year and a 13% revenue increase in 1Q25. Despite no current dividend, TUI's fundamentals are improving, with a B+ rating and potential for dividend reinstatement by 2027. The company is undervalued with a P/E of 7x and a price target of €14/share, suggesting a 92% upside in 3 years.

Portfolio Pulse from

February 14, 2025 | 12:15 pm

CACC

Credit Acceptance Corporation (CACC) has announced a conditional notice of redemption for its 6.625% senior notes due 2026, amounting to $400 million. The redemption is contingent on raising at least $400 million from a new offering of senior notes due 2030.

Portfolio Pulse from

February 13, 2025 | 9:45 pm

LC

LendingClub Corporation has secured an investment grade rating from Fitch Ratings for its $100 million Structured Loan Certificates (SLCLC) transaction, which includes participation from a top global insurance company. This marks a significant achievement for LendingClub, highlighting its credit stewardship and commitment to strong returns for investors.

Portfolio Pulse from

February 13, 2025 | 9:15 pm

ROL

Rollins, Inc. has received inaugural investment grade credit ratings from Fitch and S&P, with Fitch assigning a BBB+ rating and S&P a BBB rating, both with a stable outlook.

Portfolio Pulse from

February 13, 2025 | 9:15 pm

WDI

The article discusses a downgrade in the rating of WDI due to the Federal Reserve's hawkish stance, which prolongs a high interest rate environment. WDI's portfolio is heavily weighted in below investment grade credit, making it sensitive to rising debt costs and potential defaults. The fund's NAV discount has shrunk, reducing its attractiveness, and while the dividend yield remains high, it may not be fully supported by net investment income.

Portfolio Pulse from

February 13, 2025 | 8:45 pm

USHY

The article discusses the potential attractiveness of USHY's yield despite its low spread over investment-grade bonds. It highlights that USHY's exposure to BB and B-rated bonds, which have shown a lower than average default rate in 2025, and the rising net leverage in IG bonds could lead to more fallen angels, indicating the market is pricing in this risk.

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February 13, 2025 | 5:00 pm

GGN

The article suggests avoiding equity in favor of fixed income, particularly closed-end fund preferred stocks like GGN-B, due to the inverted earnings yield curve. GGN-B offers a 5.96% yield and an A2 credit rating from Moody's, making it a safe investment. GGN's portfolio focuses on gold and natural resources, using covered call options for income.

Portfolio Pulse from

February 12, 2025 | 9:15 pm

GAB

The article recommends selling equity and buying fixed income, specifically high-yield preferred shares like Gabelli Equity Trust preferred stock (GAB). GAB preferred shares offer a 5.87% yield with strong credit ratings, making them a safe investment.

Portfolio Pulse from

February 12, 2025 | 7:15 pm

GDV

Current market conditions suggest selling equity and buying fixed income due to lower earnings yield of common stocks. Gabelli Dividend & Income Trust (GDV) offers a 6.73% dividend yield, while its GDV-H preferred stock is highly rated with a 5.8% yield.

Portfolio Pulse from

February 12, 2025 | 4:00 pm