High-yield bond ETFs fell victim to stock slump

High-yield bond ETFs fell victim to stock slump

Investors fled from high-yield corporate bonds as stock-market contagion spared few corners of the investment universe last week. Exchange-traded funds focusing on high-yield corporate paper, or “junk” debt, struggled to stem outflows from an asset class that has largely survived the turmoil in broader bond markets. Such bonds are issued by firms that carry a below investment-grade credit rating due to their debt-laden balance sheets and other factors. See: This recession indicator shows investors have faith U.S. growth has room to run According to TrimTabs Investment Research, high-yield bond exchange-traded…

Vanguard Utilities ETF Powering Up as Rates Rise

Vanguard Utilities ETF Powering Up as Rates Rise

The major stock indexes took a pummeling last week over fears that interest rates are rising too quickly. The Dow Jones Industrial Average (DJIA) gave up a cumulative 1,300 points or roughly 5% on Wednesday and Thursday before recovering slightly in Friday trading. Surprisingly, the utilities sector, which typically moves lower when interest rates rise due to higher funding costs, has outperformed the broader market in October 2018. While the Standard and Poor’s 500 index (S&P 500) is down 5% so far this month, the Vanguard Utilities ETF (VPU) –…

Sweden’s Northvolt lands BMW deal in boost before fund raising By Reuters

2/2 © Reuters. Paris Auto Show 2/2 By Esha Vaish STOCKHOLM (Reuters) – Sweden’s Northvolt has secured a partnership with German carmaker BMW (DE:) and is seeking more funds from the European Investment Bank (EIB) to help its plans to build Europe’s largest battery factory. The firm’s new plant is seen as central to Europe’s effort to compete with Asian rivals such as CATL (SZ:), Samsung (KS:) and LG Chem (KS:), which have gained a lead in the battery market by locking in supply deals with carmakers. Northvolt said on…