Why the jobs report could give the junk-bond market a second wind
Friday’s jobs report could prove pivotal to a high-yield corporate bond market that’s already retraced lost ground since Monday amid rising expectations for more monetary stimulus.
Corporate debt rated below investment-grade, or so-called junk bonds, have made significant gains this week on surging expectations that the Federal Reserve will cut rates to help give steam to an economy shadowed by the prospects for a global trade war. Against this tense backdrop, the jobs report could energize bets for easier Fed policy and spur a further rally for bonds from leveraged issuers. Read More @ https://www.marketwatch.com/story/why-the-jobs-report-could-give-the-junk-bond-market-a-second-wind-2019-06-06?siteid=rss&rss=1
Fed typically ‘cuts swiftly and does not disappoint market expectations,’ says BAML
Sharpen the Federal Reserve’s rate-cutting sickle.
Market expectations are growing for a cut to benchmark interest rates, which currently stand at a range between 2.25% and 2.50%, and strategists at Bank of America don’t think that the market is going to be disappointed. Read More @ https://www.marketwatch.com/story/fed-typically-cuts-swiftly-and-does-not-disappoint-market-expectations-says-baml-2019-06-06?siteid=rss&rss=1
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