Bitcoin And Ethereum Price Prediction After Fed Hiked Interest Rates By 25 Basis Points<\/a><\/p>\n\n\n\nInvestment Grade Companies <\/h2>\n\n\n\n
In the first quarter alone, investment-grade companies raised a staggering $538 billion. That\u2019s a whopping 40% of the anticipated $1.3 trillion bond supply for the entire year, according to data from Informa Global Markets. New bond offerings? Oversubscribed three to four times on average. The hunger for yield is palpable.<\/p>\n\n\n\n
Morgan Stanley\u2019s credit strategist, Vishwas Patkar, draws parallels to a bygone era. Remember the mid-1990s? After four rate cuts in 1995, the Fed maintained elevated rates for an extended period. Credit markets remained resilient, and spreads hit modern-era lows of 56 basis points, even as rates climbed. Patkar muses that we might revisit those levels \u2013 perhaps as low as 75 basis points \u2013 if a soft landing materializes.<\/p>\n\n\n\n
As we navigate this credit frenzy, keep an eye on the spread. Bank of America strategists predict a tightening to around 80 basis points in the coming month \u2013 inching closer to the 77 basis point level touched in 2021. Their six-month spread target? A range of 100-120 basis points. The conclusion? The relentless demand for U.S. credit is steering this rally, and the road ahead promises both excitement and scrutiny.<\/p>\n","post_title":"U.S. Credit Demand Fuels Second-Quarter Surge","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-credit-demand-fuels-second-quarter-surge","to_ping":"","pinged":"","post_modified":"2024-04-06 03:41:17","post_modified_gmt":"2024-04-05 16:41:17","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16181,"post_author":"14","post_date":"2024-04-03 19:44:30","post_date_gmt":"2024-04-03 08:44:30","post_content":"\n
U.S. stocks are trading lower at the beginning of this trading week, weighed down by concerns among investors regarding the timing of Federal Reserve interest rate cuts, exacerbated by unexpectedly robust manufacturing data that drove Treasury yields upwards.<\/p>\n\n\n\n
The Institute for Supply Management (ISM) reported that its manufacturing PMI rose to 50.3 last month, marking the highest reading and the first to surpass 50 since September 2022, up from 47.8 in February. This indicates a potential recovery in the manufacturing sector, which has faced challenges due to increased interest rates.<\/p>\n\n\n\n
Following the release of the manufacturing data, benchmark 10-year and two-year Treasury yields surged to their highest levels in two weeks and it is important to say that the majority of S&P 500 sectors are trading lower, with the real estate, healthcare, and utilities among the worst performers. Keith Lerner, chief market strategist at Truist Wealth in Atlanta, said<\/a>:<\/p>\n\n\n\n\"If the economy is still somewhat strong and now that PMI data is starting to move up, that just suggests there could be some upside pressure in yields.\"<\/em><\/p>\n\n\n\nSee Related: <\/em><\/strong>Bitcoin And Ethereum Price Prediction After Fed Hiked Interest Rates <\/a><\/p>\n\n\n\n
