<i>Breakfast with Benjamin</i>: This week's rate hike could hit the markets in a half dozen, mostly bad, ways.
After peaking way back in 2014 and declining ever since, the high-yield bond market finally has made national news over the past week with the very high profile blow up of the Third Avenue Focused Credit Fund.
Some advisers swear by it, while others shun it as useless legalese.
The Federal Reserve raised interest rates for the first time in almost a decade in a widely telegraphed move while signaling that the pace of subsequent increases will be “gradual” and in line with previous projections.
Third Avenue Management is parting ways with Chief Executive Officer David M. Barse after he announced plans last week to freeze redemptions in its troubled high-yield mutual fund, the Wall Street Journal reported.
Economists have given Federal Reserve Chair Janet Yellen a mission for next week's press conference: Explain what gradual means.
<i>Breakfast with Benjamin</i> It took the bank just 12 minutes after the Fed's rate hike announcement to bump its prime rate to 3.5% from 3.25%.
The firm founded in 1986 by Martin Whitman has been shedding assets since before the 2008 financial crisis, hurt by poor performance and an exodus of managers.
The carnage unfolding in the high-yield bond market has paved the way for serious gains in some managed futures funds.
<i>Breakfast with Benjamin</i>: The bond market selloff has sparked fears that the Fed might not hike rates today.
DoubleLine CEO Jeffrey Gundlach points to fragile economy, crumbling credit market as signs the time is not right for an increase in interest rates, a move the Fed could come to regret.
Stocks retreated with government bonds, as investors looked past an unprecedented boost to European stimulus to focus on rising anxiety that central banks have lost the ability to boost global growth.
<i>Breakfast with Benjamin</i>: Just when the Fed felt it was safe to move off a zero-rate policy, all kinds of heck is busting loose in the high-yield bond market.
Most analysts and advisers expect a gradual climb tempered by economic performance.
As signs of stress mount in credit markets, a $788 million mutual fund is blocking clients from pulling their money to avoid fire sales.
Plus: JPMorgan's David Kelly second-guesses the Fed, MLP investors hang on for dear life, and Joe Montana gets his VC groove on
<i>Breakfast with Benjamin</i>: More than a third of the outstanding U.S. high yield and leveraged loan universe is at risk in a rising-rate cycle.
Rules proposed by Finra and MSRB would require brokers to detail the price differences they and the clients pay for corporate and municipal bonds.
It's easy to see why many advisers and investors are concerned as asset values — from stocks to bonds to real estate — have soared, but that doesn't mean cash should be king.
Franklin Templeton's Michael Hasenstab says his bond-market peers aren't prepared for higher U.S. interest rates.
