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Investment Grade

All articles tagged with #investment grade

business23 days ago•1 min saved

GameStop’s $56B eBay bid hinges on keeping its credit rating intact

GameStop disclosed a $56 billion offer to acquire eBay with a $20 billion financing commitment from TD Securities, but a key condition requires the combined company to maintain an investment-grade credit profile. Moody’s warned the deal could be credit negative due to high leverage (near 9x debt/EBITDA), risking the financing terms and casting doubt on the deal’s feasibility as GameStop’s market cap trails the deal size. eBay’s board will review the bid, and GameStop has hinted at issuing more stock if needed.

via CNBC|

#business #ebay #financing

businessfinance2 years ago•1 min saved

"Ford's Bond Buying Spurred by Tightening Spreads Amid EV Strategy Shift"

Ford's stock rose 3% following an upbeat earnings report, leading to increased buying of its outstanding bonds and tighter spreads over U.S. Treasurys. The company's fourth-quarter revenue exceeded estimates, and it announced a next-generation EV to compete with Tesla's "Model 2," along with a special dividend and plans for $2 billion in cost cuts. Ford's bonds have seen net buying and performed well, with spreads tightening by 16 to 39 basis points year-to-date, and by 5 to 10 basis points on Wednesday alone. The company's outstanding debt totals about $143 billion, with $92 billion in unsecured debt, and it returned to the investment-grade market last November.

via MarketWatch|

#bonds #businessfinance #earnings-report

finance2 years ago•4 min saved

Ford's Investment Grade Return Signals a Shift in Market Dynamics

Ford Motor Co.'s credit rating upgrade to investment grade has led to $46.8 billion of debt being removed from junk bond indexes, resulting in the largest monthly decline in the global benchmark of junk debt in 18 years. This upgrade signifies a shift in corporate priorities as companies strengthen their finances amid a potential recession. The decrease in fallen-angel bonds and the expectation of more rising-star upgrades indicate improving credit fundamentals, despite concerns about the economy. Analysts predict that $70 billion to $90 billion of debt will be upgraded to investment grade in 2024, while only $20 billion to $40 billion is expected to be downgraded to high-yield next year.

via Yahoo Finance|

#corporate-debt #credit-rating #fallen-angels

finance2 years ago•5 min saved

"Unlocking High-Yield Potential: Adding Cheap Apple Bonds to Your Portfolio"

Almost 1,500 high-grade corporate bonds, including those issued by Apple, Microsoft, Google, Disney, and Comcast, are currently trading at a discount of 50 to 80 cents on the dollar. These bonds offer investors the opportunity to pursue handy returns, as they can be bought at a steep discount and will pay out at par when they mature. With interest rates rising, these discounted bonds have fallen in price, but their yields have moved above 5%. Smaller investors can take advantage of these discounted bonds by buying single-name bonds through brokers or adding them to their portfolios using mutual funds or ETFs.

via MarketWatch|

#apple #corporate-bonds #discounts

business3 years ago•4 min saved

Greek Stocks Soar as Country Overcomes Economic Challenges and Political Turmoil.

Greek stocks have risen nearly 40% over the past year, with the Athens General Composite Index up almost 7% following the New Democracy party's 40.8% win in the national election. The party's business-friendly policies and successful macro policy implementation have attracted international investors, while reforms to Greece's antiquated bureaucratic systems and economic successes have reduced risk perception around Greek assets. The country's economic growth was 5.9% in 2022, well above the euro zone rate, and it is on the cusp of receiving an upgrade to investment grade. The next step will be the upgrade of the Athens Stock Exchange from Emerging to Developed.

via CNBC|

#business #economic-growth #greek-stocks

business3 years ago•0 min saved

Greece's Economic Rollercoaster: From Austerity to Investment Grade.

Greece has achieved a significant milestone in its financial recovery as credit rating agency Fitch upgraded the country's credit rating to investment grade, marking its "greatest turnround". The upgrade is expected to attract more foreign investment and reduce borrowing costs for the country. Greece's economy has been on the rise in recent years, with the government implementing reforms and achieving a budget surplus in 2019.

via Financial Times|

#business #credit-rating #economy

finance3 years ago•2 min saved

Meta's Second Blue-Chip Bond Sale Aims for $7 Billion

Meta Platforms Inc. is set to raise $8.5 billion in a five-part bond sale, becoming the first mega-cap technology company to tap the US investment-grade bond market amid turmoil in the financial sector. The company plans to use the fresh funds to help finance capital expenditures, repurchase outstanding shares of its common stock, and for acquisitions or investments. Bank of America Corp., JPMorgan and Morgan Stanley are the bookrunners on Meta’s deal.

via Yahoo Finance|

#bond-sale #bookrunners #capital-expenditures