BUZ INVESTORS Tesla Model 3 There's never a quiet day at Tesla. The brain behind this (related to fighting authority or causing huge, important changes) company is forever busy brewing up disruptive ideas.

Tesla sells $1.8B of bonds at 5.3% yield in upsized offering

Tesla sells $1.8B of bonds at 5.3% yield in upsized offering

Tesla sells $1.8B of bonds says it raised $1.8B, <a href=$300M more than expected, at a 5.3% yield in its first traditional " width="300" height="183" srcset="https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/Tesla-Stock6-300x183-Small.jpg?resize=300%2C183 300w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/Tesla-Stock6-300x183-Small.jpg?resize=768%2C468 768w, https://i1.wp.com/investorsbuz.com/wp-content/uploads/2017/03/Tesla-Stock6-300x183-Small.jpg?w=787 787w" sizes="(max-width: 300px) 100vw, 300px" />

Tesla sells $1.8B of bonds(NASDAQ:TSLA) says it raised $1.8B, $300M more than expected, at a 5.3% yield in its first traditional bond offering, marking a vote of confidencein the company and another sign of investors’ appetite for corporate debt at a time when government bonds provide meager returns.

TSLA is “at the right place at the right time with the right product,” says CreditSights analyst Hitin Anand.

Goldman Sachs was the lead underwriter of the eight-year bonds, which were rated B- by S&P and B3 by Moody’s.



Tesla sells $1.8B of bonds

Efraim Levy of CFRA says the bond investors are expecting profitability from TSLA’s more affordable Model 3, but “by 2025 there’s no more room for excuses.”

The deal “speaks to the sheer insanity found in the high-yield market to have a deal like this upsized with terms so unappealing to investors,” says Larry McDonald of The Bear Traps Report. “Congrats to Elon Musk.”

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BUZ INVESTORS buying bonds Investors pulled more than $18B from from bond mutual funds and ETFs in the one week following last November's election

Investors return to buying bonds

Investors return to buying bonds

BUZ INVESTORS buying bonds Investors pulled more than <a href=$18B from from bond mutual funds and ETFs in the one week following last November's election" width="300" height="200" srcset="https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/fa8a2f803ea2ddf92359d55091dcde0a_L.jpg?resize=300%2C200 300w, https://i0.wp.com/investorsbuz.com/wp-content/uploads/2017/04/fa8a2f803ea2ddf92359d55091dcde0a_L.jpg?w=600 600w" sizes="(max-width: 300px) 100vw, 300px" />

BUZ INVESTORS   buying bonds Investors pulled more than $18B from from bond mutual funds and ETFs in the one week following last November’s election – the largest one-week exit in more than three years. Over the next five weeks, they yanked an additional $22B.

At issue was the idea that better economic growth – and alongside, perkier inflation – were on the way.

It turned out to be a temporary blip, write Ben Eisen, Chris Dieterich, and Sam Goldfarb in the WSJ. More than $112B has been pumped back into fixed-income funds since January 1, and the benchmark 10-year Treasury yield touched 2.28% on Friday, its lowest level since shortly after the election.




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buying bonds

Emerging market companies and governments have been happy to oblige, selling $178.5B of dollar-denominated debt in Q1, the highest quarterly amount ever.

U.S. corporates were happy to oblige as well, with high-grade credits selling a record $414.5B of paper in Q1. Junk-rated issuers sold $178.5B, double the amount in Q1 one year ago.

Name your excuse, but the Journal writers suggest the strong appetite for bonds shows investors unable to shake years-old assumptions about an economy able to do little more than muddle along.

“The old trade has worked really well, so you need overwhelming evidence before people will abandon something that has worked,” says Mohamed El-Erian, who helped coin the term the “new normal,” to describe lame post-crisis economic growth. Bond buyers beware … El-Erian says the that period is coming to an end.


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Buz Investors Japan Begins QE Tapering With the Fed expected to further tighten financial conditions following its now guaranteed March 15 rate hike, and the ECB recently announcing the tapering of its QE program from €80 to €60 billion monthly having

Japan Begins QE Tapering: BOJ Hints It May Purchase 18% Less Bonds Than Planned

Japan Begins QE Tapering: BOJ Hints It May Purchase 18% Less Bonds Than Planned

Buz Investors Japan Begins QE Tapering With the Fed expected to further tighten financial conditions following its now guaranteed March 15 rate hike, and the ECB recently announcing the tapering of its QE program from €80 to €60 billion monthly having

Buz Investors Japan Begins QE Tapering With the Fed expected to further tighten financial conditions following its now guaranteed March 15 rate hike, and the ECB recently announcing the tapering of its QE program from €80 to €60 billion monthly having run into a substantial scarcity of eligible collateral, the third big central bank – the BOJ – appears to have also quietly commenced its own monteary tightening because, as Bloomberg calculates looking at the BOJ’s latest bond-purchase plan, the central bank is on track to miss an annual target, by a substantial margin, prompting investor concerns that the BOJ has commenced its own “stealth tapering.” While in recent



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Japan Begins QE Tapering

Some more details: the central bank forecast purchases of 8.9 trillion yen in bonds in March, based on the midpoint of ranges supplied in the operation plan. Maintaining that pace for 12 months will see it accumulate about 107 trillion yen of debt. At the same time, 41 trillion yen of existing holdings will mature, leaving it with a net increase of 66 trillion yen, well below the stated goal of 80 trillion yen.

The BOJ appears to be joining other banks that are seeking to jumpstart the “carry trade” for local banks and pension institutions, by steepening the yield curve. The step-back from buying super-long bonds, those with more than 10 years to maturity, comes after Governor Kuroda and his colleagues said in September that an “excessive” decline in the yields has placed a heavier burden on companies seeking to meet pension obligations.




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Buz Investors Bonds Signaling The stock market rally remains unrelenting. The primary narrative behind this rally has been expectations for accelerating economic growth thanks to less regulation and more pro-growth fiscal policies out of Washington.

Are Bonds Signaling A Stock Decline?

Are Bonds Signaling A Stock Decline?

Many investors are expressing the concern that the recent fall in bond yields may bode ill for stocks.

Comparing the financial media narrative to the underlying data.

Stocks OR Bonds? Perhaps Stocks AND Bonds.

 Buz Investors Bonds Signaling The stock market rally remains unrelenting. The primary narrative behind this rally has been expectations for accelerating economic growth thanks to less regulation and more pro-growth fiscal policies out of Washington.

Buz Investors Bonds Signaling  The stock market rally remains unrelenting. The primary narrative behind this rally has been expectations for accelerating economic growth thanks to less regulation and more pro-growth fiscal policies out of Washington. But a potential warning flag has surfaced in recent weeks that is casting doubts on the sustainability of the recent stock advance. The bond market is also showing increasing signs of strength, which to many contradicts the stock market advance as it reflects an investor flight to safety. Does the recent firming of the bond market suggest that the curtain is about to fall on the stock market rally?



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Bonds Signaling

 

Stocks as measured by the S&P 500 Index (NYSEARCA:SPY) are not only expensive today, but they also recently reached their most overbought levels on a Relative Strength Index basis in more than a decade. Given the lofty perch upon which stocks currently sit, it would seem natural to believe that the recent and accelerating strength in the bond market is signaling that the recent stock rally may soon be running out of steam. After all, if investors are still willing to pile back into bonds at already low yields, it suggests a flight to safety may be forming for reasons such as investors losing confidence about the timing of pro-growth fiscal policy themes that sparked so much excited in recent months.

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Silver Support levels broken, looking to 19.20

Extreme Positioning In Gold, Silver, 10-Year Bonds

Extreme Positioning In Gold, Silver, 10-Year Bonds

Silver

  • Buz Investors Extreme Positioning  The precious metal is trading at $17.60 per ounce at 09:40 GMT this morning, 0.17% lower from the New York close.
  • During the session, silver traded at a high of $17.74 per ounce and a low of $17.56 per ounce. In the New York session yesterday, silver fell 0.51% and closed at $17.63 per ounce, tracking losses in gold prices.
  • Immediate downside, the first support level is seen at $17.52 per ounce, while on the upside, the first resistance level is at $17.70 per ounce.

Extreme Positioning Next Leg In The Rally

Extreme Positioning

Extreme Positioning  Investors saw gold rally from under $1100 to nearly $1400 (silver from $15 to $21) as 10-year treasury yields fell from 220 bps to less than 140 bps. As the momentum of this trade really gained steam, we saw commercial traders aggressively position themselves for gold prices (and silver prices) to decline and for yields to back up.

Yesterday’s session passed with silver continuing to work its way towards a breakout following another rejection up near 18.

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It’s a critical area of resistance in the form of peaks created in May 2015/16 and the underside of the trend-line running up from January. This confluence has thus far proved formidable.

We are patiently awaiting the break, and given the proximity to the apex of the triangle, we shouldn’t have to wait much longer. To reiterate from the other day; a topside breakout will be a more difficult proposition due to it going against the trend in place since summer and resistance up to just over 18, while a break to the downside will quickly bring into play

BOJ Cornered as Japanese Banks Running Out of Bonds to Sell

BOJ Cornered as Japanese Banks Running Out of Bonds to Sell

BOJ Cornered as Japanese Banks Running Out of Bonds to Sell

BOJ Cornered as Japanese Banks Running Out of Bonds to Sell

their government bond holdings, pushing the central bank closer to the limits of its record monetary easing.f Bonds to Sell

Japan Post Bank Co. and the nation’s three so-called megabanks have almost halved their sovereign bond holdings to 114 trillion yen ($1.1 trillion) since March 2013, the month before the Bank of Japan began buying the securities on an unprecedented scale to end deflation. Government notes held by Mitsubishi UFJ Financial Group Inc., Sumitomo Mitsui Financial Group Inc. and Mizuho Financial Group Inc. are approaching the level where further reductions would involve securities they need as collateral.

“Banks are the first port of call” as the BOJ seeks to boost its JGB holdings by 80 trillion yen annually, said Shuichi Ohsaki, the chief rates strategist at Bank of America Merrill Lynch in Tokyo. “But they’re losing capacity to cut beyond those that are reaching maturity.”

Banks in Japan need to hold a certain amount of JGBs to use as collateral in transactions with the central bank and in interbank markets. MUFG, the nation’s largest lender, must hold about 15 trillion yen of JGBs to meet its requirements, Managing Executive Officer Kazuto Uchida said in Tokyo last month. The bank had 26.8 trillion yen of the notes as of June 30. And Mizuho signaled that it’s unlikely to trim its 10.5 trillion yen of holdings.

“Considering the need for collateral and other factors, we generally don’t envision cutting the balance any further,” Masako Shiono, a spokeswoman for Mizuho, said in an e-mailed statement. Spokesmen for MUFG and Sumitomo Mitsui declined to comment on their JGB strategies.

overnment bond trading volumes have plunged since Kuroda began easing in April 2013, sparking concerns over the functioning of the market. Trading at city banks, trust banks and insurers fell to 10.1 trillion yen in May, the lowest since at least 2004, according to Japan Securities Dealers Association data.

Benchmark 10-year JGB yields reached a record low of minus 0.3 percent last month before rising to about minus 0.1 percent after the BOJ left its policy rate unchanged. Yields on 20-year notes also fell below zero and 40-year bonds reached as low as 0.1 percent. Since BOJ Governor Kuroda ordered a “comprehensive review” of the central bank’s policy, yields on all maturities have risen.