The U.S. government is in debt $21 Trillion, an amount that can never be paid. Yet Moody’s and Fitch reaffirmed their top AAA rating on U.S. debt. Why do they do this? Do they have to? Why can’t politicians, the media, CEO’s, or anyone else, ever tell Americans the truth?
Views: 10828 RonPaulLibertyReport
Check Keiser Report website for more: http://www.maxkeiser.com/ Max and Stacy discuss the junk rated bonds being issued to great demand by Netflix. Max interviews Marshall Auerback, market practitioner and research associate at the Levy Institute. They discuss the alleged Trump market boom and the US economy. WATCH all Keiser Report shows here: http://www.youtube.com/playlist?list=PL768A33676917AE90 (E1-E200) http://www.youtube.com/playlist?list=PLC3F29DDAA1BABFCF (E201-E400) http://www.youtube.com/playlist?list=PLPszygYHA9K2ZtV_1KphSugBB7iZqbFyz (E401-E600) http://www.youtube.com/playlist?list=PLPszygYHA9K1GpAv3ZKpNFoEvKaY2QFH_ (E601-E800) https://www.youtube.com/playlist?list=PLPszygYHA9K19wt4CP0tUgzIxpJDiQDyl (E801-E1000) https://www.youtube.com/playlist?list=PLPszygYHA9K302vF9LY8cZJ4_VJB8P347 (E1001 - Current) RT LIVE http://rt.com/on-air Subscribe to RT! http://www.youtube.com/subscription_center?add_user=RussiaToday Like us on Facebook http://www.facebook.com/RTnews Follow us on VK https://vk.com/rt_international Follow us on Twitter http://twitter.com/RT_com Follow us on Instagram http://instagram.com/rt Follow us on Google+ http://plus.google.com/+RT Listen to us on Soundcloud: https://soundcloud.com/rttv RT (Russia Today) is a global news network broadcasting from Moscow and Washington studios. RT is the first news channel to break the 1 billion YouTube views benchmark.
Views: 23418 RT
On this edition of Illinois Rising, Dan Proft & Patrick Hughes, Co-Founder Illinois Opportunity Project, discuss a new study which correlates higher legislative pay to more time spent fundraising, and less time legislating. They also talk with Jim Iuorio, Managing Dir. at TJM Institutional Services and CNBC contributor, about the downgrading of Illinois Bonds (yet again) and the fallout of Wells Fargo.
Views: 943 Upstream Ideas
Junk Bonds sind "Schrottanleihen". Die Verzerrung schlechthin. Es sind Anleihen von Unternehmen oder Ländern mit minderer Qualität. Sie haben einen schlechten Record. Kein Rating bedeutet keine Sicherheit. Wie kann man davon profitieren? ➜ Hier geht's zum Buch : https://erfolgimcrash.de/ ➜ Hier geht's zum Börsenbrief : https://www.florianhommlongshort.de/ Dr. h.c. Florian Homm, MBA (geboren 1959) ist Deutschlands bekanntester Hedgefonds Manager. Nach seinem Studium an der Harvard Business School arbeitete Homm unter anderem bei Merrill Lynch, Fidelity, Tweedy, Browne, Bank Julius Bär als Analyst, Nostro Händler und Fonds Manager bevor er als Finanzunternehmer und Hedge Fonds Manager US Dollar Milliardär wurde. Er blickt auf eine sehr bewegtes Leben zurück. Homm spricht sechs Sprachen, ist ehemaliger Botschafter und UNESCO Delegierter, sowie ehemaliger Basketball Junioren Nationalspieler und Bestseller Autor. Er wurde bei einem Mordattentat in Venezuela von einer Kugel getroffen, während in Deutschland 1,5 Millionen Euro Kopfgeld auf Ihn ausgesetzt waren. Heute ist er fast ausschließlich karitativ sowie in beratender Funktion tätig und spricht in seinen Videos, Analysen und Büchern über aktuelle wirtschaftliche und politische Themen. ➜ Abonniere Florian Homm auf Youtube - http://bit.ly/2sHqyge ➜ Folge Florian Homm auf Facebook https://www.facebook.com/homm.florian/ ➜ Unterstützen Sie bitte die Vereinsarbeit: https://www.olmoms.org
Views: 7659 Florian Homm
Marc Faber - US bonds should be rated junk status CNBC 13 Jan 2012
Views: 1945 Daniel44125
Most borrowers borrow through banks. But established and reputable institutions can also borrow from a different intermediary: the bond market. That’s the topic of this video. We’ll discuss what a bond is, what it does, how it’s rated, and what those ratings ultimately mean. First, though: what’s a bond? It’s essentially an IOU. A bond details who owes what, and when debt repayment will be made. Unlike stocks, bond ownership doesn’t mean owning part of a firm. It simply means being owed a specific sum, which will be paid back at a promised time. Some bonds also entitle holders to “coupon payments,” which are regular installments paid out on a schedule. Now—what does a bond do? Like stocks, bonds help raise money. Companies and governments issue bonds to finance new ventures. The ROI from these ventures, can then be used to repay bond holders. Speaking of repayments, borrowing through the bond market may mean better terms than borrowing from banks. This is especially the case for highly-rated bonds. But what determines a bond’s rating? Bond ratings are issued by agencies like Standard and Poor’s. A rating reflects the default risk of the institution issuing a bond. “Default risk” is the risk that a bond issuer may be unable to make payments when they come due. The higher the issuer’s default risk, the lower the rating of a bond. A lower rating means lenders will demand higher interest before providing money. For lenders, higher ratings mean a safer investment. And for borrowers (the bond issuers), a higher rating means paying a lower interest on debt. That said, there are other nuances to the bond market—things like the “crowding out” effect, as well as the effect of collateral on a bond’s interest rate. These are things we’ll leave you to discover in the video. Happy learning! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/29Q2f7d Next video: http://bit.ly/29WhXgC Office Hours video: http://bit.ly/29R04Ba Help us caption & translate this video! http://amara.org/v/QZ06/
Views: 62164 Marginal Revolution University
Chicago's public school (CPS) system plans to sell a new type of bond issue in an attempt to separate the debt from the district's severe financial woes and protect it in a potential bankruptcy filing, according to a document released by the district on Tuesday. The preliminary prospectus for the debt indicates the Chicago Board of Education will issue $500 million of bonds secured solely by a capital improvement property tax and not by the district's general obligation pledge. That pledge currently covers about $6.8 billion of existing bonds that are rated junk by Moody's Investors Service, S&P, and Fitch Ratings. CPS, the nation's third-largest public school system, is struggling with pension payments that will jump to about $720 million this fiscal year from $676 million in fiscal 2016, as well as drained reserves and debt dependency - factors that have pushed its GO credit ratings deep into the junk category and led investors to demand fat yields for its debt. Illinois Governor Bruce Rauner last week vetoed a bill to give CPS a one-time $215 million state payment to help cover pension costs. Ratings for the new bonds, backed by a $45 million a year property tax levy approved by the Chicago City Council in 2015, were not available. Because that tax revenue can only be used to fund capital projects and not operations, CPS is hoping bondholders will consider the debt a safer bet than the district's GO bonds. http://feeds.reuters.com/~r/Reuters/domesticNews/~3/EMPWmmvD964/us-chicago-education-bonds-idUSKBN13V2VM http://www.wochit.com This video was produced by YT Wochit News using http://wochit.com
Views: 50 Wochit News
http://www.euronews.net/ Fitch Ratings has downgraded Portugal's long term foreign and local currency bonds to BB+ from triple-B, from investment grade to junk. Short term, senior unsecured debt and commercial paper were also downgraded. Fitch has also lowered growth forecasts for 2012, when it now expects GDP to contract by three percent. Rival raters Standard and Poor still give Portugal investment status, while Moody's thinks the country is in an even worse state, rating it Ba2.
Views: 299 euronews (in English)
Check Keiser Report website for more: Max and Stacy discuss the junk rated bonds being issued to great demand by Netflix.
Views: 14 News Today
Although bonds normally promise a fixed flow of income, this does not mean that they are riskless investments. Although U.S. government bonds are treated as risk-free, this is not the case for corporate bonds. If a company goes bankrupt then the bondholders will not receive the payments that they have been promised and therefore there is some uncertainty surrounding future bond payments. This uncertainty is called default risk. The default risk is measured by Moody's Investors Services, Standard & Poor's Corporation, and Fitch Investors Service. All three of these entities provide financial information on firms as well as well as ratings on corporate and municipal bonds. Investment Grade Bonds Bonds that are rated BBB or above by Standard & Poor's, or Baa or above by Moody's are called investment grade bonds. Speculative Grade or Junk Bonds Bonds that are rated BB or lower by Standard and Poor's, Ba or lower by Moody's, or bonds that are unrated are considered junk bonds or speculative grade bonds. Bond rating agencies use financial ratios to grade bonds. The key ratios used are show below as follows Coverage ratios Leverage ratio Liquidity ratios Profitability ratios Cash flow-to-debt ratio https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=7a7b8v6Mz7A
Views: 2024 Subjectmoney
Welcome to the Investors Trading Academy talking glossary of financial terms and events. Our word of the day is a “Junk Bond” A junk bond is exactly the same as a regular bond. Junk bonds are an IOU from a corporation or organization or country that states the amount it will pay you back called the principal, the date it will pay you back known as the maturity date and the interest it will pay you on the borrowed money. Junk bonds differ because of their issuers' credit quality. All bonds are characterized according to this credit quality and therefore fall into one of two bond categories, investment grade and junk. These are the bonds that pay high yield to bondholders because the borrowers don't have any other option. Their credit ratings are less than pristine, making it difficult for them to acquire capital at an inexpensive cost. Junk bonds are typically rated 'BB' or lower by Standard & Poor's and 'Ba' or lower by Moody's. Junk bonds are risky investments, but have speculative appeal because they offer much higher yields than safer bonds. Companies that issue junk bonds typically have less-than-stellar credit ratings, and investors demand these higher yields as compensation for the risk of investing in them. A junk bond issued from a company that manages to turn its performance around for the better and has its credit rating upgraded will generally have a substantial price appreciation. By Barry Norman, Investors Trading Academy
Views: 4128 Investor Trading Academy
We’ve already reached the tenth letter of our investor alphabet – well done for sticking with me this far! Today we’re going to look at an asset class that has an unappealing name but which could provide returns that are very attractive. J is for junk bonds. We’ve already established that a bond is simply a loan to a government or a company. So what do we mean by a junk bond? It’s a term that came to be used in the nineteen eighties and will forever be associated with one of its pioneers, Michael Milken. One of the risks of being a pioneer is that you get arrows in your back. Ask Milken – he went to jail over junk bonds. But that’s a story for another time.. A junk bond is issued by a company which usually has a not too brilliant credit rating from the official rating agencies who measure these things. The specific definition is a rating of BB or lower from Standard and Poors or BA or below from Moodys. Because they are deemed to be high risk companies, historically they’ve had to offer much higher rates of interest than bonds issued by companies judged to be safe. So they can appeal to investors looking to diversify their portfolio and willing to accept higher risk for higher returns with at least some of their savings. I say historically because in recent years one of the strangest phenomena that I’ve seen is the massive reduction in this so called risk premium. Just like its amazing that Spain or Portugal can borrow money for not much more than Germany or Switzerland, so it is bizarre that many junk bonds now offer only marginally better returns than A rated companies. The biggest attraction for the more sophisticated investor is to find junk bonds issued by a company at the start of a major business turnaround. For example if a new management team is put in place or a new product is launched around the time that the bond is issued. Not only do you lock in a good return, but if the turnaround leads to a re-rating by the credit agencies then the value of the bond can sky rocket in a matter of days. In the junk bond peak of the nineteen eighties companies with few assets would use this paper as a means of acquiring other businesses. Then they’d use the real assets of the acquired business to pay off the debt they took on to fund the acquisition! But as they became more widely used, so the quality of the companies declined and the rate of defaults increased. Many investors got a bloody nose and the junk bond craze died out. But, memories are short. Investors who don’t learn the lessons of history are doomed to repeat them. And that’s what they’re doing right now. If the main bond markets are at risk of a sharp correction when interest rates start to rise again, I can only imagine the scorched earth that will ensue in the junk bond market. And don’t imagine that this is a tiny niche market. Over ninety five per cent of American companies with revenue over thirty five million dollars a year have their bonds rated as junk. They include household names like Delta airlines and US steel. The US junk bond market alone is worth half a trillion dollars. But this is definitely a market for sophisticated investors only. You should only invest money you can afford to lose and no more than the top five or ten per cent of your portfolio. There’s nothing wrong with allocating some of your savings to high risk high return assets. Just make sure you do some due diligence otherwise you might just as well throw darts at the Financial Times…
Views: 1029 Elite Investor TV
Many people blame the 2008 financial crash on bad bond ratings. Could it happen again? Should you be concerned? Watch this video to learn what ratings agencies look for when determining bond risk. SUBSCRIBE to learn everything you need to know about trading: https://ota.buzz/2JRtxbd SIGN UP for a FREE Half-day class! http://ota.buzz/youtube Want to learn more useful trading and investing tips? Check out these playlists: - Best of: Investing Strategies: https://ota.buzz/2HbqN7U - Best of: Expert Trader Sam Seiden: https://ota.buzz/2Ej8mLp LET'S CONNECT! — https://www.facebook.com/OnlineTradingAcademy/ — https://twitter.com/TradingAcademy — https://www.linkedin.com/company/online-trading-academy/
Views: 429 Online Trading Academy
U.S. companies with junk credit ratings are piling into the debt markets at a record pace, seizing on some of the lowest borrowing costs in history and strong demand from investors craving higher returns. Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
Views: 169 Wall Street Journal
Junk refers to an asset, such as a stock or bond when rating drops below investment grade. Once a credit rating drops below the BBB level, it is "sub-investment" grade and is commonly referred to as junk. Companies with a low credit rating generally pay a much higher interest rate on their debt, and may find it difficult to sell new bonds. By Barry Norman, Investors Trading Academy.
Views: 82 Investor Trading Academy
Junk bonds, or high yield bonds, are bonds that have low credit ratings, and therefore include an inherent risk. Be aware of a bond's credit rating before making an investment with help from a portfolio manager in this free video on personal finance and money management. Expert: Gregory Bramwell-Smith Bio: Gregory Bramwell-Smith is the relationship and portfolio manager at Bramwell-Smith Associates. Filmmaker: David Pakman
Views: 2638 ehowfinance
Moody's Investors Service has lowered Chicago's credit rating to junk bond status, a move Mayor Rahm Emanuel is calling irresponsible. Now, the slow-burning flames of this downgrade crisis at City Hall are suddenly roaring. The decision by Moody's means the cost of borrowing by Chicago will increase. Moody's didn't just slash and burn the City of Chicago's general obligation credit rating to junk status, it also downgraded to junk nearly another $4 billion in bonds tied to revenue from the city's water and sewer systems. Moody's didn't touch the State of Illinois' credit rating, but blamed its sweeping downgrades of city debt on a case the state lost last week at the Illinois Supreme Court. The court ruled a law unconstitutional on Friday that would have cut public employee pensions, which prompted Moody's to declare the following: "We believe the city's options for (reducing)...its own unfunded pension liabilities have narrowed considerably." Moody's suggested if the city raised taxes, it might re-evaluate the credit rating downgrades. That drew an angry, written response from Mayor Emanuel. "While Chicago's financial crisis is very real and at our doorsteps, today's...decision by Moody's...is not only premature, but it is irresponsible to play politics with Chicago's financial future by pushing the City to increase taxes on residents without reform," Emanuel wrote. Emanuel said he would continue to "work in Springfield and with our partners in labor to ensure we will always meet our obligations, protect the retirements of our workforce, continue to deliver vital city services, while protecting our taxpayers." So, does this mean the international credit markets will now lump Chicago together with Detroit, that other credit-challenged Midwestern metropolis? “I've been in Detroit. And, for many reasons, Chicago is a much different economic situation than the Detroit economic situation is; the diversity of the city's economy. The size of the economy is just -- We're in a much different place than the City of Detroit's been over the last couple of decades,” said Chuck Burbridge, Executive Director of the Chicago Teachers Pension Fund. Now, the mayor and other Chicago Democrats are suddenly much weaker politically. That $2.2 billion is the key. If the big banks demand the cash Moody's has now enabled them to demand, the city probably can't pay. It drastically increases pressure to cut a deal with Gov. Bruce Rauner that they otherwise might not have considered. Rauner's bargaining position just got a lot stronger. In their announcement, Moody's noted the costs of servicing its unfunded liabilities will place "significant strain on the city's financial operations absent commensurate growth in revenue and/or reductions in other expenditures." Emanuel said Moody's is out of step with other rating agencies and ignores the city's progress in dealing with its financial liabilities. Statement from Mayor Rahm Emanuel “While Chicago's financial crisis is very real and at our doorsteps, today's irresponsible decision by Moody's to downgrade the City's credit by two steps goes far beyond that reality. Their decision was driven solely by the overturning of a state pension bill that did not include Chicago's pension reform, yet they did not downgrade the State of Illinois. Moody's is out of step with other rating agencies – by as many as six steps – as they refuse to acknowledge Chicago's growing economy, progress we have made on our legacy financial liabilities, balancing four budgets without raising property taxes while adding to our reserves, securing pension reforms for two of the City's four funds to preserve and protect retirements for 61,000 employees that were previously in danger, and the progress we are now making with our partners in labor at the other two city funds. This action by Moody's is not only premature, but it is irresponsible to play politics with Chicago's financial future by pushing the City to increase taxes on residents without reform. I am committed to focus on both reform and revenue to address Chicago's fiscal crisis, and we will continue our work in Springfield and with our partners in labor to ensure we will always meet our obligations, protect the retirements of our workforce, continue to deliver vital city services, while protecting our taxpayers.”
Views: 685 Justin Jensen in Current Events
Santa Clara's City Council is considering a request from the San Francisco 49ers to subsidize their new football stadium. Besides $222,000,000 cash from as-yet undetermined sources, the city would also need to issue $330,000,000 of bonds. The city's own bond consultant thinks this is such a risky investment that he rated it barely above "junk" bonds. This came out in response to a question from a Santa Clara resident at the November 20, 2007 meeting of City Council. Santa Clara resident Don Buchanan: "What kind of a rating do you think this bond will receive?" David Brodsly, Managing Director, KNN Public Finance (the city's bond consultant): "The two bond issues that are ... umm ... being contemplated by the Stadium Authority ... they would be ... the ... the admissions bond would probably be in the BBB level which is the bottom of the investment grade range, that's ... it's ... that ... it's the less certain area of the market, but that's ... that's a good guess standing here today."
Views: 654 SantaClaraPlaysFair
Josh Sigurdson talks with author and economic analyst John Sneisen about Moody's most recent warning as the credit rating agency claims there is likely a large wave of junk bond defaults ahead. We have seen the level of global non-financial companies rated as speculative or junk rise 58% since 2009, the largest proportion in history! We've also seen a 49% increase in debt for U.S. companies as well as the rise of share buybacks which are becoming more prevalent and more risky by the day. Moody's warnings should not be taken in stride. The agency only issues warnings when they absolutely have to and cannot put off the bad market sentiment any longer. They can only cover up so long until it becomes obvious. For their own good, they have to look like a serious credit rating agency when the markets tank, so they can say "I told you so." According to Moody's, the low interest rates and obsession with yield has lead to companies issuing mounds of debt that in comparison offer low levels of protection for investors. They warn that when economic conditions worsen, the outlook won't be so benign. We haven't seen this level of concern since 2008, and there's a reason for that. Nothing has changed since 2008. Well, actually scratch that... things have gotten WORSE since 2008. We never saw a recovery, we simply saw perpetuation. Putting off the crisis a bit longer, leading to far more pressure build-up and centralization run amok. Now, when it comes down, it'll come down that much harder and it'll be as if no one ever learned. If we want to stop the circular havoc, we as individuals need to support the individual's demand of their currency, the free market. Not bank and government centralization leading to massive downfalls. How many times do we need to go through this. Of course the fundamentals are off the table due to the level of manipulation in the monetary system as well as the markets, so we cannot put a date on the crash, but we know it has to happen inevitably and so we must prepare and understand the repeated problems. Self sustainability and individual responsibility are simply the most necessary ways to protect ourselves against this market and monetary calamity. Individuals must do their own due diligence and come out of this problem, strong and independent. Stay tuned for more from WAM! Video edited by Josh Sigurdson Featuring: Josh Sigurdson John Sneisen Graphics by Bryan Foerster and Josh Sigurdson Visit us at www.WorldAlternativeMedia.com LIKE us on Facebook here: https://www.facebook.com/LibertyShallPrevail/ Follow us on Twitter here: https://twitter.com/WorldAltMedia FIND US ON STEEMIT: https://steemit.com/@joshsigurdson BUY JOHN SNEISEN'S LATEST BOOK HERE: Paperback https://www.amazon.com/dp/1988497051/ref=zg_bs_tab_pd_bsnr_2?_encoding=UTF8&psc=1&refRID=ZBK6VTXQRA2F77RYZ602 Kindle https://www.amazon.ca/dp/B073V5R72H/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1500130568&sr=1-1 DONATE HERE: https://www.gofundme.com/w3e2es Help keep independent media alive! Pledge here! Just a dollar a month can help us stay on our feet as we face intense YouTube censorship! https://www.patreon.com/user?u=2652072&ty=h&u=2652072 BITCOIN ADDRESS: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU https://anarchapulco.com/buy-your-tickets/ Use Promo Code: wam to save on your tickets! World Alternative Media 2018 "Find the truth, be the change!"
Views: 18083 World Alternative Media
In this video I cover an article entitled " Illinois Enters Its Death Spiral". Here is the link: https://dollarcollapse.com/pension-funds/illinois-enters-death-spiral-junk-bonds/. This video is a continuation of the seriousness of the pension problem we are facing in the United States. If you live in Illinois and are able to leave then that may be the best viable option. Illinois Bonds have or becoming junk status and with the mounting pension obligations the situation is dire. This is an imminent crisis that has far too little attention.
Views: 211 I.A. Financial Solutions
In this video, I have explained What are Bonds Difference Between Bonds and Debentures Types of Bonds ---------------------------------------------- Share, Support, Subscribe!!! Facebook:https://www.facebook.com/BasicGyaan.F Twitter: https://twitter.com/BasicGyaan Instagram Myself: https://www.instagram.com/SunilSolves/... Google Plus: https://plus.google.com/1010703809019... Microphone i use : http://amzn.to/2xBYjBO About : BASIC GYAAN is a YouTube Channel, where you will find Videos on curious interesting topics related to Finance, Economics and Trending topics in Hindi, New Video is Posted Every week :)
Views: 129662 Basic Gyaan
(15 Jun 2010) SHOTLIST 1. Wide of Athens street 2. European Union and Greek flags 3. Various of streets 4. Interior Athens Stock Exchange, sign on wall 5. Various of electronic ticker showing information on stock index 6. Wide of screen showing graphs 7. Close of stock market reading showing declining index percentage 8. Set-up of Nikos Skourias, Chief Investment Officer at Pegasus Securities S.A. 9. Close of Skourias' hands 10. SOUNDBITE (English) Nikos Skourias, Chief Investment Officer, Pegasus Securities S.A. "The market opened down 2 percent. Now it's at 1 percent. I think that the implications are very negative for the stock markets and for the Greek debt as well. It was an unexpected move from Moody's. I think that it was unjustified and I think that it could trigger some selling pressure on Greek government bonds." 11. Various of electronic ticker showing information on stock index 12. SOUNDBITE (English) Nikos Skourias, Chief Investment Officer, Pegasus Securities S.A. "It will be very difficult for Greece in 2012 to have access as a junk issuer to bond markets and capital markets. So I think that in 2012 there will be two solutions for Greece: restructuring, or extension of the European Union-IMF package, because Greece won't have any access to capital markets." 13. Wide of Athens Stock Exchange STORYLINE The Athens stock market opened down on Tuesday after a second credit rating agency lowered its rating on Greece's debt to "junk" status, citing the risks in the rescue package for the debt-ridden country from the Eurozone and International Monetary Fund. The agency, Moody's Investors Service, released a statement on Monday saying it was cutting Greece's government bond ratings by four notches to Ba1 from A3, with a stable outlook for the next 12-18 months. It was the second of the three major credit agencies to accord Greek bonds junk status; Standard & Poor's did the same in late April. The downgrades reflects concern that the country could fail to meet its obligations to cut its deficit and pay down its debt, but the Greek government said that was out of the question. A Greek Finance Ministry statement insisted that the recovery effort was on track. Nikos Skourias, Chief Investment Officer at Pegasus Securities, said the downgrade was unjustified, and carried negative implications for Greek debt and the country's financial future. The downgrade came as a delegation from the European Union and the International Monetary Fund started an interim review of the country's efforts to pull itself out of its major debt crisis. After amassing a vast public debt and overspending that sent its budget deficit spiralling to 13.6 percent of gross domestic product in 2009, Greece was saved from defaulting on its loans in May by the first instalment of a joint EU and IMF 110 billion euro (134 billion US dollars) bailout. It is to receive the second in September, pending implementation of a major austerity programme that has sparked strong union reaction and a series of damaging strikes. The gap, technically known as a spread, between Greek 10-year bond yields and their benchmark German equivalents dipped slightly late on Monday, just before the rating cut. The difference was at 5.91 percent, down from 6.12 percent earlier in the day. That means that Greece would have to pay an interest rate of around 9 percent were it to raise cash through bond issues. However, bolstered by the rescue loans, Athens said it had no plans to try selling its bonds to the markets soon, except for short-term treasury bill issues in July. The continued flow of EU and IMF funds is conditional on Greece meeting its targets, which will remain under constant scrutiny. You can license this story through AP Archive: http://www.aparchive.com/metadata/youtube/95a5c7520912ad4c9784816fab472077 Find out more about AP Archive: http://www.aparchive.com/HowWeWork
Views: 38 AP Archive
Marc Faber on 2009.02.06 said, that before shorting S&P500 he would like to see a rebound in market. He also mentioned, that GE bonds (and US bonds) should be rated as 'junk', but the main point is that the rating agencies were total failure in last few years and people should not pay attention to them.
Views: 2943 peacespeech
A junk bond is a higher-risk bond that has a speculative appeal as they can offer much higher yields. However, companies that issue junk bonds typically have a poor credit rating and although the price appreciation of a junk bond is substantial, if the company manages to turn itself around it isn't always able to do so. Want to learn more about financial trading? Start studying for free at https://www.mytradingskills.com
Views: 8 My Trading Skills
Firms frequently pay to have their debt rated. The two leading bond-rating firms are Moody’s and Standard & Poor’s (S&P). The debt ratings are an assessment of the creditworthiness of the corporate issuer. The definitions of creditworthiness used by Moody’s and S&P are based on how likely the firm is to default and the protection creditors have in the event of a default. It is important to recognize that bond ratings are concerned only with the possibility of default. Earlier, we discussed interest rate risk, which we defined as the risk of a change in the value of a bond resulting from a change in interest rates. Bond ratings do not address this issue. As a result, the price of a highly rated bond can still be quite volatile. The highest rating a firm’s debt can have is AAA or Aaa, and such debt is judged to be the best quality and to have the lowest degree of risk. For example, the 100-year BellSouth issue we discussed earlier was rated AAA. This rating is not awarded very often: As of 2014, only four nonfinancial U.S. companies had AAA ratings. AA or Aa ratings indicate very good quality debt and are much more common. A large part of corporate borrowing takes the form of low-grade, or “junk,” bonds. If these low-grade corporate bonds are rated at all, they are rated below investment grade by the major rating agencies. Investment-grade bonds are bonds rated at least BBB by S&P or Baa by Moody’s. Rating agencies don’t always agree. To illustrate, some bonds are known as “crossover” or “5B” bonds. The reason is that they are rated triple-B (or Baa) by one rating agency and double-B (or Ba) by another, a “split rating.” For example, in March 2014, real estate investment company Omega Healthcare Investors sold an issue of 10-year notes rated BBB– by S&P and Ba1 by Moody’s. A bond’s credit rating can change as the issuer’s financial strength improves or deteriorates. For example, in January 2014, Moody’s cut the bond rating on PlayStation 4 manufacturer Sony from Baa3 to Ba1, lowering the company’s bond rating from investment grade to junk bond status. Bonds that drop into junk territory like this are called fallen angels. Although sales of the new PS4 were a positive factor noted by Moody’s, the rating agency felt that the majority of Sony’s core business such as TVs, mobile phones, digital cameras, and personal computers faced difficult times ahead. Credit ratings are important because defaults really do occur, and when they do, investors can lose heavily. For example, in 2000, AmeriServe Food Distribution, Inc., which supplied restaurants such as Burger King with everything from burgers to giveaway toys, defaulted on $200 million in junk bonds. After the default, the bonds traded at just 18 cents on the dollar, leaving investors with a loss of more than $160 million. Even worse in AmeriServe’s case, the bonds had been issued only four months earlier, thereby making AmeriServe an NCAA champion. Although that might be a good thing for a college basketball team such as the University of Kentucky Wildcats, in the bond market it means “No Coupon At All,” and it’s not a good thing for investors.
Views: 700 Farhat's Accounting Lectures
Hundreds of US companies are about to have their bond ratings cut to junk. Here’s why that’s a major problem for the markets and the economy… The key insight of the Austrian School of Economics (maybe the key insight of ALL economics) is that the amount you borrow matters, but so does the use to which you put the money. A case in point is US corporate debt, which has changed structurally lately in very scary ways. The short version of the story is that after the US cut interest rates to historically low levels to keep the Great Recession from swapping it’s capital R for a capital D, public companies figured out that they could borrow money for less than their stocks’ dividend yield, use the proceeds to buy back their outstanding shares, and generate free cash flow in the process. And – a nice added perk – the increased demand pushed their share price up and landed their CEOs even bigger year-end bonuses. So that’s what they did, on an epic scale. But – recall the Austrian School insight – the result was soaring debt without any new productive assets to offset the cost. Generally speaking, debt rising faster than operating income equals diminished creditworthiness. So all that borrowing has produced several trillion dollars of debt that’s just one step above junk. Here’s an excerpt from money manager Louis Gave’s take on the subject. Louis Gave at Gavekal Research says the greatest source of potential instability in the years ahead lies with the massive growth of the U.S. corporate debt market, particularly at the BBB-rated (near junk) level. Gave recently told FS Insider that it has far outpaced the economy and could be due for a reset during the next downturn, which is increasingly becoming a concern by other strategists. #ww3
Views: 73 Breaking News TV
Bond visits Moody's in Madrid as a Portugal's ambassador - By Porto forward® - http://www.facebook.com/BondJunkBond
Views: 18742 Portoforward
Illinois cut near junk by S&P, lowest ever for a U.S. state http://www.chicagotribune.com/business/ct-illinois-bond-rating-20170601-story.html Previously: The Bo and Rocko Show May 31, 2017 https://www.youtube.com/watch?v=MU8h2Y-7s2A 2 bounty hunters & a fugitive die in a furious car dealership shootout https://www.youtube.com/watch?v=DrxF7N1tc0k Are you lost or did some'body' get you lost? https://www.youtube.com/watch?v=roSdW8r4Yqs A Series of Unfortunate Events / Depopulation; the Documentary https://www.youtube.com/watch?v=umv-HHBq8FE Kim Jong-un pledges to eliminate 'weak' North Koreans https://www.youtube.com/watch?v=kBUwQXWPaxE North Koreans 'sold to Europe to work then stripped of pay' https://www.youtube.com/watch?v=Xq-uCbMHNiU Satellite images reveal North Korea is expanding brutal prison camps https://www.youtube.com/watch?v=qBISMoH3Li8 Pedophile Portfolio https://www.youtube.com/watch?v=EIDmE9vBTPQ Jesus Reincarnate - The new meat gesuis https://www.youtube.com/watch?v=o2sbCgvz_5A Oxy Contin and Beezlebub https://www.youtube.com/watch?v=DhadMFIlTIY Humpty Dumpty https://www.youtube.com/watch?v=1hogz4jbdQM Conky reads Jeremiah 25: 34-38 - The Cry of the Shepherds https://www.youtube.com/watch?v=aIbG7gVleBE Machine Gun Sally https://www.youtube.com/watch?v=RmQunmmwLVg
Views: 98 BoKnowsEntertainment
Meanwhile S&P's decision to downgrade South Africa's local currency debt sent the rand tumbling. However, Moody's decision to only place South Africa on review for a downgrade may have prevented a larger sell-off in the currency. The rand weakened 2 percent against the dollar after S&P's announcement, moving from 13.9 Rand per dollar to a session low of 14.1675. It did stage a small recovery on Monday morning, helped by a very weak dollar. Analysts say Moody's hitting the pause button saved the country billions in potential bond outflows. But the downgrade to sub-investment grade by S&P implies that South African bonds will fall out of the Barclays Global Bond Index, with estimated outflows of up to $2 billion Subscribe to us on YouTube: http://ow.ly/Zvqj30aIsgY Follow us on: Facebook: https://www.facebook.com/cgtnafrica/ Twitter: https://twitter.com/cgtnafrica
Views: 302 CGTN Africa
A BLOW has been dealt to turnaround efforts at Barclays after credit agencyThe agency said that Barclays' bonds are increasingly risky for investors and raised doubts about its ability to boost profits.Analysts also highlighted the extra costs and disruption caused by having to comply with rules designed to make the UK system safer.They cut the bank's credit rating to Baa3 – just one step above the rating given to high-risk 'junk' bonds.and raised doubts about its ability to boost profits.Analysts also highlighted the extra costs and disruption caused by having to comply with rules designed to make the UK system safer.They cut the bank's credit rating to Baa3 – just one step above the rating given to high-risk 'junk' bonds.Although not unexpected, the decision is a setback for chief executive Jes Staley's strategy of selling off operations in Africa and elsewhere to focus on investment and retail banking in the US and UK.And it comes as the bank faces a challenge from activist investor Edward Bramson, who now controls 5.2pc of its shares. AutoNews- Source: http://www.dailymail.co.uk/money/markets/article-5583285/Barclays-debt-rated-junk-credit-agency-Moodys-deals-turnaround-hammer-blow.html?ITO=1490&ns_mchannel=rss&ns_campaign=1490
Views: 7 US Sciencetech
A lot of frustrated investors are turning to junk bonds to generate extra cash flow. Compared to government bonds, junk bonds yield a juicy interest rate. But with the extra interest comes risk. Jill Schlesinger reports.
Views: 572 CBS News
Prof André Roux, USB and USB-ED faculty member, shares his insights with us on what the implications of the credit rating downgrade to junk bonk status means.
Views: 1659 USBExecEd
http://ukipmeps.org | http://ukip.org ► European Parliament, Strasbourg - 15.06.2010 ► Speaker: Godfrey Bloom MEP, UKIP (Yorkshire & North Lincolnshire), EFD group. ► Debate: Oral questions - GUE/NGL, S&D, PPE, ALDE : Commission - Credit rating agencies - O-0051/2010, O-0072/2010, O-0077/2010, O-0078/2010 .................................. ► Video: EbS (European Parliament) .................................. ► EU Member States: Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Sweden, United Kingdom
Views: 1797 UKIP MEPs
Please click above to subscribe to my channel Thanks for watching! Financial News Silver News Gold Bix Weir RoadToRoota Road To Roota Kyle Bass Realist News Greg Mannarino Rob Kirby Reluctant Preppers The Next Newss Info Wars Maneco64 Mike Maloney Gold Silver Eric Sprott Jim Rickards David Morgan Peter Schiff Max Keiser Robert Kiyosaki SilverDoctors Finance and Liberty Nomi Prins Jim Willie Clif High Martin Armstrong Ron Paul Pastor Williams Bill Holter Bo Polny Jim Sinclair James Turk Key Financial Insights
Views: 22 Financials Radio
The junk-rated Chicago Public Schools will be selling up to $1 billion of new and refunding bonds pending approval of its governing board later this week. The nation's third-largest public school system wants to issue up to $840 million of general obligation bonds to fund capital improvements using a $45 million property tax hike approved by the Chicago City Council last year. CPS is struggling with escalating pension payments that will jump to about $720 million this fiscal year from $676 million in fiscal 2016, as well as drained reserves and debt dependency. http://feeds.reuters.com/~r/Reuters/domesticNews/~3/xbLqzWrcrWk/us-chicago-education-bonds-idUSKCN12O2AO http://www.wochit.com This video was produced by YT Wochit News using http://wochit.com
Views: 50 Wochit News
Please click above to subscribe to my channel Thanks for watching! Financial News Silver News Gold Bix Weir RoadToRoota Road To Roota Kyle Bass Realist News Greg Mannarino Rob Kirby Reluctant Preppers The Next Newss Info Wars Maneco64 Mike Maloney Gold Silver Eric Sprott Jim Rickards David Morgan Peter Schiff Max Keiser Robert Kiyosaki SilverDoctors Finance and Liberty Nomi Prins Jim Willie Clif High Martin Armstrong Ron Paul Pastor Williams Bill Holter Bo Polny Jim Sinclair James Turk Key Financial Insights
Views: 25 Financials Radio
Do you want to know if the stock market is going to crash next year? Just keep an eye on junk bonds. Prior to the horrific collapse of stocks in 2008, high yield debt collapsed first. And as you will see below, high yield debt is starting to crash again. The primary reason for this is the price of oil. The energy sector accounts for approximately 15 to 20 percent of the entire junk bond market, and those energy bonds are taking a tremendous beating right now. This panic in energy bonds is infecting the broader high yield debt market, and investors have been pulling money out at a frightening pace. And as I have written about previously, almost every single time junk bonds decline substantially, stocks end up following suit. So don’t be fooled by the fact that some comforting words from Janet Yellen caused stock prices to jump over the past couple of days. If you really want to know where the stock market is heading in 2015, keep a close eye on the market for high yield debt. If you are not familiar with junk bonds, the concept is actually very simple. Corporations that do not have high credit ratings typically have to pay higher interest rates to borrow money. The following is how USA Today describes these bonds… High-yield bonds are long-term IOUs issued by companies with shaky credit ratings. Just like credit card users, companies with poor credit must pay higher interest rates on loans than those with gold-plated credit histories. But in recent years, interest rates on junk bonds have gone down to ridiculously low levels. This is another bubble that was created by Federal Reserve policies, and it is a colossal disaster waiting to happen. And unfortunately, there are already signs that this bubble is now beginning to burst… Back in June, the average junk bond yield was 3.90 percentage points higher than Treasury securities. The average energy junk bond yielded 3.91 percentage points higher than Treasuries, Lonski says. That spread has widened to 5.08 percentage points for junk bonds vs. 7.86 percentage points for energy bonds — an indication of how worried investors are about default, particularly for small, highly indebted companies in the fracking business. The reason why so many analysts are becoming extremely concerned about this shift in junk bonds is because we also saw this happen just before the great stock market crash of 2008. In the chart below, you can see how yields on junk bonds started to absolutely skyrocket in September of that year… Of course we have not seen a move of that magnitude quite yet this year, but without a doubt yields have been spiking. The next chart that I want to share is of this year. As you can see, the movement over the past month or so has been quite substantial… And of course I am far from the only one that is watching this. In fact, there are some sharks on Wall Street that plan to make an absolute boatload of cash as high yield bonds crash. One of them is Josh Birnbaum. He correctly made a giant bet against subprime mortgages in 2007, and now he is making a giant bet against junk bonds… When Josh Birnbaum was at Goldman Sachs in 2007, he made a huge bet against subprime mortgages. Now he’s betting against something else: high-yield bonds. From The Wall Street Journal: Joshua Birnbaum, the ex-Goldman Sachs Group Inc. trader who made bets against subprime mortgages during the financial crisis, now has more than $2 billion in wagers against high-yield bonds at his Tilden Park Capital Management LP hedge-fund firm, according to investor documents. Could you imagine betting 2 billion dollars on anything? If he is right, he is going to make an incredible amount of money. And I have a feeling that he will be. As a recent New American article detailed, there is already panic in the air… It’s a mania, said Tim Gramatovich of Peritus Asset Management who oversees a bond portfolio of $800 million: “Anything that becomes a mania — ends badly. And this is a mania.” Bill Gross, who used to run PIMCO’s gigantic bond portfolio and now advises the Janus Capital Group, explained that “there’s very little liquidity” in junk bonds. This is the language a bond fund manager uses to tell people that no one is buying, everyone is selling. Gross added: “Everyone is trying to squeeze through a very small door.” Bonds issued by individual energy developers have gotten hammered. For instance, Energy XXI, an oil and gas producer, issued more than $2 billion in bonds just in the last four years and, up until a couple of weeks ago, they were selling at 100 cents on the dollar. On Friday buyers were offering just 64 cents. Midstates Petroleum’s $700 million in bonds — rated “junk” by both Moody’s and Standard and Poor’s — are selling at 54 cents on the dollar, if buyers can be found.
Views: 3824 Rob Neal
Illinois' Coming $500 mln bond Purchase Becomes near-junk rating
Views: 2 Music Life
The corporate bond market looks like it could be the catalyst for the next financial crisis in the US. Corporate debt is over $5 trillion and $1.6 trillion of this needs to refiananced in the next three years. With rates on the increase and 48% of corporate bonds rated BBB, one level above junk status, we could be in for a proble,. However problems are also chances for success in specualting. Investopdeia on Bonds https://www.investopedia.com/terms/b/bond.asp
Views: 892 John Polomny
Since the start of 2013, investors have poured nearly $9 billion into high-yield exchange traded funds. Gershon Distenfeld, director of high yield at AllianceBernstein, said it is clear that they should have opted for actively managed funds instead. 'The numbers tell the whole story. You don’t have to give fancy arguments. These things have been around for almost a decade and they have well underperformed the average active manager,' said Distenfeld. According to Distenfeld’s numbers, since the start of 2008, shortly after their inception, the two largest ETFs— HYG and JNK—delivered annualized returns of 6.2% and 6%, respectively, well short of the 8.3% annualized return for the Barclays US Corporate High-Yield Index. He adds that the top 20% of active high-yield mangers, as rated by Lipper, have also comfortably outperformed these two ETFs and have done it with lower volatility, as measured by risk-adjusted returns, and are not really much cheaper than active funds. 'The management fees are slightly lower. They are not the few basis points you find in the equity world. They are 40 and 50 basis point fees, but again, the numbers tell the whole story. Over eight years they have underperformed a high yield index by about 200 basis points and some of the top-tier managers by 300 or 400 basis points.' Subscribe to TheStreetTV on YouTube: http://t.st/TheStreetTV For more content from TheStreet visit: http://thestreet.com Check out all our videos: http://youtube.com/user/TheStreetTV Follow TheStreet on Twitter: http://twitter.com/thestreet Like TheStreet on Facebook: http://facebook.com/TheStreet Follow TheStreet on LinkedIn: http://linkedin.com/company/theStreet Follow TheStreet on Google+: http://plus.google.com/+TheStreet
Views: 1128 TheStreet: Investing Strategies
In this episode of common sense investing I will tell you why you should think twice about owning high yield bonds. Alternative investments are a broad category, so I have split this topic up into multiple parts. In Part One, I will tell you why high yield bonds don’t quite yield enough to justify their risks. My name is Ben Felix of PWL Capital and this is Common Sense Investing. I’ll be talking about a lot more common sense investing topics in this series, so subscribe and click the bell for updates. I want these videos to help you to make smarter investment decisions, so feel free to send me any topics that you would like me to cover. ------------------ Visit PWL Capital: https://goo.gl/uPcXg7 Follow PWL Capital on: - Twitter: https://twitter.com/PWLCapital - Facebook: https://www.facebook.com/PWLCapital - LinkedIN: https://www.linkedin.com/company-beta/105673/ Follow Ben Felix on - Twitter: https://twitter.com/benjaminwfelix - LinkedIn: https://www.linkedin.com/in/benjaminwfelix/ ------------------ Video channel management, content strategy & production by Truly Inc. - Website: http://trulyinc.com - Twitter: https://twitter.com/trulyinc
Views: 7611 Ben Felix
Language: Hindi, Topics Covered 1. Recap of banking sector lectures and minor updates as per latest monetary policy review (Feb 2015) and Committees for Small banks and Payment Banks 2. What is finance? Why should we start business with finance from elsewhere? 3. Type types of Financing mechanism: Debt Instrument vs Equity instruments 4. What is credit rating? What is India’s current credit rating? What factors affect it? 5. What’s the difference between Gilt Edged securities vs. Junk Bonds 6. What is bond yield and yield to maturity (YTM)? 7. How can higher bond yield and lower credit rating hurt a Government? 8. Difference between Bonds and Debentures? 9. Municipal bonds: History, their Importance in financing smart cities, SEBI’s 2015 guidelines for Municipal bonds. 10. OFCD and other types of Debentures Powerpoint available at http://Mrunal.org/download Venue: Sardar Patel Institute of Public Administration (SPIPA), Satellite, Ahmedabad, Gujarat,India Exam-Utility: UPSC CSAT, CDS, CAPF, SSC, IBPS, Banking, MBA interview
Views: 403426 Mrunal Patel
Josh Sigurdson talks with author and economic analyst John Sneisen about the crazy world of bonds as we see a massive crash quickly approaching us. Currently, Italian junk bonds are yielding less than US Treasuries. This is dramatically alarming. As countries throughout the world are reaching complete bankruptcy, even if they won't come out and admit it, this development adds to the rightful concern people have. Junk rated debt is giving us the same % return on investment as AAA rated US debt. The Eurozone has about €3 trillion in "junk debt". As the Eurozone struggles with bad southern debt they are continuously bailing out the bankrupted countries. It's absolutely insane that the Italian bad debt costs THE SAME as US debt. This is a great example of how manipulated the ECB's interest rates are. As we so often talk about, everything is manipulated today into oblivion. The fiat, centrally planned monetary system, the debt driven derivatives markets and the regulatory burdens on the markets and of course this insane bond apocalypse cannot be excluded from this global manipulative insanity. This all comes right after cashless society kingpin Kenneth Rogoff claimed that interest rates are to go negative in the next crisis. We know the next crisis will come soon as all fiat system come crashing down. The bubbles in the monetary system and markets throughout the world are ready to burst and we're going to see something on an epic scale but we have to stay self sufficient and come out on top of all of this. Stay tuned as we continue to cover this story! Video edited by Josh Sigurdson Featuring: Josh Sigurdson John Thore Stub Sneisen Graphics by Bryan Foerster and Josh Sigurdson Visit us at www.WorldAlternativeMedia.com LIKE us on Facebook here: https://www.facebook.com/LibertyShallPrevail/ Follow us on Twitter here: https://twitter.com/WorldAltMedia FIND US ON STEEMIT: https://steemit.com/@joshsigurdson BUY JOHN SNEISEN'S LATEST BOOK HERE: Paperback https://www.amazon.com/dp/1988497051/ref=zg_bs_tab_pd_bsnr_2?_encoding=UTF8&psc=1&refRID=ZBK6VTXQRA2F77RYZ602 Kindle https://www.amazon.ca/dp/B073V5R72H/ref=sr_1_1?s=digital-text&ie=UTF8&qid=1500130568&sr=1-1 DONATE HERE: https://www.gofundme.com/w3e2es Help keep independent media alive! Pledge here! Just a dollar a month can help us stay on our feet as we face intense YouTube censorship! https://www.patreon.com/user?u=2652072&ty=h&u=2652072 BITCOIN ADDRESS: 18d1WEnYYhBRgZVbeyLr6UfiJhrQygcgNU World Alternative Media 2017 "Find the truth, be the change!"
Views: 6774 World Alternative Media