Century Bond Issues Increase

Interest rates continue to be at or near historic lows, which presents a unique opportunity for borrowers. And universities are beginning to...

Ford: A Fallen Angel

Moody's downgraded Ford's bonds to Ba1, into junk bond territory. The downgrade was due to lower operating margins, weak earnings, ...

Germany's Negative Yield Bond Sale

With about $15 trillion in value worldwide, the amount of bonds outstanding with negative yields is astonishing. And a recent bond sale by ...

Negative Interest Rates

As we have previously mentioned, worldwide negative yielding debt is at an extraordinary level. In fact, there is $15 trillion of negative y...

Rhino Bonds

The number of black rhinos in the wild has fallen from 65,000 in the 1970s to about 5,500, putting the species at risk of extinction. Conser...

Oracle's Credit Rating Lowered

S&P recently announced that it was lowering the rating on Oracle's debt from AA- to A+. The reason given for the downgrade was the ...

Is There Too Much Corporate Debt?

A common refrain among policy experts is that the corporate debt level is too high. In fact, from 2008 to 2018, corporate debt rose from $2....

IBM's Bond Offering

IBM recently issued $20 billion in bonds, the seventh largest bond offering in history. The bonds were issued at 1.45 percent above Treasur...

Negative YTM Debt Increases

In 2016, there was a record $12.2 trillion in negative YTM debt worldwide. That amount had fallen, but in the last five months, more than $...

Defaulting On Bond Covenants

Windstream Holdings, a rural telecom company, is expected to file for bankruptcy after the company recently lost a lawsuit filed by Aureliu...

China's Perpetual Bonds

In the textbook, we mentioned several perpetual bonds issues. In January, The People's Bank of China joined the fold when it issued $5.9...

AT&T Bond Sale

AT&T announced that it was issuing $5 billion in senior unsecured bonds to be used to repay maturing debt. The bonds will carry a BBB r...

What Is Green?

Environmental, social, and governance ( ESG ) investing has become popular in recent years as investors have become interested in social con...

Puerto Rico’s Bankruptcy

Bond covenants are generally inviolable, but bankruptcy can change that. Recently, Puerto Rico’s bankruptcy allowed the country to restruct...

Tesla Bond Coming Due

As we discussed in the textbook, there are many different types of bonds. Tesla has a bond coming due that is a convertible bond, but can b...

PG&E: A Fallen Angel

Yesterday, we posted about the possibility of PG&E filing for bankruptcy due to potential liability for the November 2018 California wi...

Buffett Bets On Interest Rates

Famed investor Warren Buffett has made a bet  on interest rates. Recently, Berkshire Hathaway issued 30-year fixed rate bonds to pay for ex...

Bond Ratings And Mergers

A recent article in Bloomberg highlights a potential threat to the bond market. Recent years have seen a number of high-priced acquisitions...