Biggest Buyers Stampede From Junk Bonds on Loss: Credit Markets

Biggest Buyers Retreat from Junk Bonds

(Source: Bloomberg, February 15, 2013)

According to Bloomberg, major institutional investors pulled back from junk bonds as exchange-traded funds (ETFs) experienced record withdrawals, marking the first losses in eight months. The combined value of the five largest junk-debt funds fell 7% from January highs, with State Street’s $11.9 billion fund alone seeing nearly $1 billion in withdrawals over 12 days.

Analysts noted that institutions such as hedge funds and banks are shifting away from broad indexes, instead targeting specific bonds. Junk bond ETFs, which attracted $8 billion in 2012 amid strong returns, are now facing outflows as strategists forecast weaker performance in 2013. Prices have declined from record highs, with concerns that valuations are stretched after years of double-digit returns.

Prominent investors including Dan Fuss of Loomis Sayles and Howard Marks of Oaktree Capital warned that the market is “overbought” and called for caution. Bank of America strategists described the pullback as evidence of instability at current valuations.

Meanwhile, credit-default swap costs rose slightly, signaling deteriorating confidence, while Heinz Co. bonds became the most actively traded following news of its $23 billion buyout by Berkshire Hathaway and 3G Capital.

Overall, junk bond ETFs are losing institutional support, with investors increasingly wary of inflated valuations and shifting toward selective opportunities rather than broad exposure.

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정크본드 시장에서 대규모 투자자 이탈

(출처: Bloomberg, 2013년 2월 15일)

Bloomberg 보도에 따르면, 정크본드 시장의 주요 기관 투자자들이 빠져나가면서 ETF(상장지수펀드)에서 사상 최대 규모의 자금 유출이 발생했습니다. 이는 8개월 만의 첫 손실로, 상위 5개 정크본드 펀드의 총 가치가 1월 고점 대비 7% 하락했습니다. 특히 State Street의 119억 달러 규모 펀드는 12일 동안 약 9억 8,800만 달러가 빠져나갔습니다.

전문가들은 헤지펀드와 은행 같은 기관들이 광범위한 지수 투자에서 벗어나 특정 채권에 집중하고 있다고 분석했습니다. 2012년 156%의 수익률로 80억 달러가 유입됐던 정크본드 ETF는 2013년에는 약세 전망으로 인해 자금이 빠져나가고 있습니다. 금리 상승과 과도한 밸류에이션 우려로 가격은 고점에서 하락세를 보이고 있습니다.

Loomis Sayles의 Dan Fuss와 Oaktree Capital의 Howard Marks는 시장이 “과매수 상태”라며 신중한 접근을 강조했습니다. Bank of America는 최근의 자금 유출이 현재 밸류에이션에서 시장 불안정을 보여주는 신호라고 평가했습니다.

한편, 신용부도스왑(CDS) 비용은 소폭 상승해 투자심리 악화를 반영했으며, Heinz의 230억 달러 인수 소식으로 해당 회사 채권이 가장 활발히 거래되었습니다.

결론적으로, 정크본드 ETF는 기관 투자자들의 지지를 잃고 있으며, 투자자들은 광범위한 시장 노출보다 개별 채권 중심의 선택적 투자로 이동하고 있습니다.

Are High Yield Corporate Bond ETFs Worth The Risk?

Are High Yield Corporate Bond ETFs Worth The Risk?
by Daniela Pylypczak on February 15, 2013

Though equity markets may have started out 2013 with a bang as the Dow and S&P both hit multi-year highs, the fixed income space remains rather uncertain. With interest rates expected to stay at near-zero levels for the foreseeable future, investors have found it challenging to find meaningful yields. This task, however, is certainly not impossible as there are dozens of exchange-traded products that offer the potential for some big payouts [see 101 High Yielding ETFs For Every Dividend Investor].

http://etfdb.com/2013/are-high-yield-corporate-bond-etfs-worth-the-risk/

Junk Bond ETFs: Are 5% Yields Worth the Risk?

Junk Bond ETFs: Are 5% Yields Worth the Risk?
February 14th at 6:18am by John Spence

High-yield corporate bond ETFs have been immensely popular but yields have been pushed so low that newcomers may not be getting adequately compensated for the risk of investing in speculative-grade debt.

http://www.etftrends.com/2013/02/junk-bond-etfs-are-5-yields-worth-the-risk/

Lend Lease drives office wedge in Docklands

Lend Lease drives office wedge in Docklands
Date
February 13, 2013
Read later

Simon Johanson
Property Editor for The Age

LEND Lease is set to launch a nine-level commercial building into a tight office market in Melbourne's Docklands after gaining planning approval on Tuesday.

http://www.smh.com.au/business/property/lend-lease-drives-office-wedge-in-docklands-20130212-2eazj.html

2012 | Year-End San Francisco Office Report

http://www.colliers.com/en-us/sanfrancisco/insights

2012 | Year-End San Francisco Office Report >>

San Francisco remains a bright spot in an otherwise cautious national office market.

http://www.colliers.com/en-us/sanfrancisco/insights

Chile's copper exports off to a good start in 2013

Metals - Chile

Chile's copper exports off to a good start in 2013
By Alexandra Demo-Dananberg - Tuesday, February 12, 2013

Chilean copper exports increased 8.52% to US$3.47bn in January, compared to US$3.20bn during the same month in 2012, according to figures compiled by the central bank.

http://www.bnamericas.com/news/metals/chiles-copper-exports-off-to-a-good-start-in-2013

Carbon Markets Threatened If EU Backload Plan Fails, CEPS Says

Carbon Markets Threatened If EU Backload Plan Fails, CEPS Says
By Mathew Carr

Europe will struggle to convince the rest of the world that carbon trading is the best way to tackle climate change if a plan to revive the price of the region’s permits fails, said the Centre for European Policy Studies.

High-Yield Bond ETFs: Too Risky After Big Rally?

Market Insight: Are High-Yield Bond ETFs Getting Too Risky?

Hello. Today, we are reviewing an insightful piece from ETF Trends that asks a critical question: Have high-yield bond ETFs become too dangerous for investors after their massive rally?

The article points out a shifting tide in the junk bond market. After a long period of attracting yield-hungry investors, these high-yield ETFs are starting to lose momentum and are currently slipping toward key technical support levels.

A major red flag comes from Moody's, which notes that the safety covenants on these junk bonds have plummeted to all-time lows. This essentially means lenders have fewer protections if a company defaults. To make matters worse, investors are not being rewarded for taking on this extra risk. Because so many people are eager to buy these bonds, the extra yield they offer over safer investments has shrunk dramatically.

Looking at the charts, popular funds like HYG and JNK are teetering on their 50-day moving averages. If they fall below this line, we could see a deeper correction. For years, junk bonds offered the "best of both worlds"—a nice steady income combined with price appreciation driven by easy money from central banks. But today, with yields bottoming out around 6%, they are fully priced and have lost their upside potential.

Ultimately, the article warns that the Federal Reserve's low-interest-rate policy has forced investors into increasingly risky territory. With record-low safety protections and compressed yields, the high-yield bond market is flashing warning signs that shouldn't be ignored.

Sourced from ETF Trends: "High-Yield Bond ETFs: Too Risky After Big Rally?"
Read the full article here

안녕하세요. 오늘은 시장에서 큰 인기를 끌었던 하이일드 채권 ETF가 과연 지금도 안전한 투자처인지 짚어보는 ETF Trends의 기사를 알기 쉽게 요약해 드립니다.

이 글은 이른바 '정크 본드'로 불리는 투기 등급 회사채 시장의 분위기가 심상치 않다고 진단합니다. 그동안 은행 이자보다 조금이라도 높은 수익을 찾던 투자자들의 돈이 몰리면서 크게 올랐지만, 최근 들어 힘이 빠지며 단기 지지선이 위협받고 있습니다.

가장 큰 경고 신호는 무디스에서 나왔습니다. 회사채를 발행할 때 투자자를 보호하는 안전 장치인 '재무 약정' 수준이 사상 최저치로 떨어졌다는 것입니다. 기업이 부도가 나도 투자자들이 보호받기 어려워졌다는 뜻입니다. 게다가 안전 장치가 부실해진 만큼 이자라도 많이 받아야 하는데, 시장에 채권을 사려는 수요가 넘쳐나다 보니 오히려 추가로 받는 금리는 크게 줄어든 상황입니다.

차트를 보면 HYG나 JNK 같이 유명한 ETF들이 현재 50일 이동평균선에 아슬아슬하게 걸쳐 있습니다. 만약 이 선이 뚫리면 가격이 크게 조정을 받을 수 있습니다. 과거에는 시중에 돈이 넘쳐나면서 이자도 받고 가격도 오르는 일석이조의 효과를 누렸지만, 이제는 수익률이 6퍼센트 대에 머물면서 가격이 오를 대로 올라 매력이 크게 떨어졌습니다.

결론적으로, 연방준비제도의 초저금리 정책 때문에 투자자들이 어쩔 수 없이 위험한 곳으로 내몰린 결과, 지금의 하이일드 채권 시장은 투자자 보호는 턱없이 약하고 가격은 비싼 아슬아슬한 국면에 접어들었다고 주의를 당부하고 있습니다.

위 내용은 ETF Trends의 "High-Yield Bond ETFs: Too Risky After Big Rally?"를 읽기 쉽게 요약한 자료입니다.
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Freeport LNG signs liquefaction tolling agreement with BP

Freeport LNG signs liquefaction tolling agreement with BP
February 11, 2013
By PennEnergy Editorial Staff
Source: Freeport LNG

Freeport LNG Expansion, L.P. (Freeport LNG) today announced that it had entered into a binding 20-year Liquefaction Tolling Agreement (LTA) with BP for 4.4 million tons per annum (mtpa), equivalent to the production capacity of the second train of Freeport LNG's proposed natural gas liquefaction and LNG loading facility on Quintana Island near Freeport, Texas. The LTA with BP will commence upon completion of construction of the second liquefaction train.

http://www.pennenergy.com/articles/pennenergy/2013/02/freeport-lng-signs-liquefaction-tolling-agreement-with-bp.html

Global Carbon Market Value Drops 35 Percent

February 7, 2013

Global Carbon Market Value Drops 35 Percent

The value of global carbon markets fell 35 percent to €62 billion ($84 billion) in 2012, largely due to an oversupply of credits, according to analysis from Thomson Reuters Point Carbon.