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Fixed income investing general data and info

Started by HognotinMemphis, October 19, 2017, 12:54:26 pm

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HognotinMemphis

Argentina, a serial defaulter, recently issued a 100-year bond with a 7% yield, which was three and a half times oversubscribed.

Tesla, an automaker, has yet to make a profit, nor has it produced positive cash flow in its brief history. Despite the fact that its debt has been rated below investment grade, Tesla was nevertheless able to sell a $1.8 billion, eight-year bond at a yield of only 5.3%.

Corporate indebtedness is higher than the 2008 peak. Corporate debt to gross domestic product (GDP) is now at 45%, higher than levels that preceded prior recessions.

LESS THAN A QUARTER OF THE WORLD'S GOVERNMENT DEBT HAS YIELDS ABOVE 2%.



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Quote from: HoginMemphis on October 19, 2017, 12:54:26 pm
Argentina, a serial defaulter, recently issued a 100-year bond with a 7% yield, which was three and a half times oversubscribed.

Tesla, an automaker, has yet to make a profit, nor has it produced positive cash flow in its brief history. Despite the fact that its debt has been rated below investment grade, Tesla was nevertheless able to sell a $1.8 billion, eight-year bond at a yield of only 5.3%.

Corporate indebtedness is higher than the 2008 peak. Corporate debt to gross domestic product (GDP) is now at 45%, higher than levels that preceded prior recessions.

LESS THAN A QUARTER OF THE WORLD'S GOVERNMENT DEBT HAS YIELDS ABOVE 2%.
See what you're saying and yeah, no doubt in a yield starved world there are a lot of investments that very likely will come back to bite investors in the butt. However, at least we can say about the above: at least they're not giving NEGATIVE yields. The height of absurdity.