The Donald Trump victory rally in equities has not correlated to its counterpart in the bond market. With investors feeling positive that the newest Presidential-elect can carry his business success with him to the White House, stocks have edged up significantly in the last month. Vanguard's S&P 500 Index ETF ($VOO) has risen nearly 6%, while junk bond yields have moved marginally.
Anxiety regarding Italy's constitutional referendum has waned on the country's banks, as investors flee industry debt leading up to Sunday's vote. Bank bonds saw yields climb close to the same levels experienced in Q1 - when markets slumped nearly the entire quarter.
The world's largest meat processor, Tyson Foods, Inc. (NYSE: TSN), experienced bad news ahead of one of the nation's top meat-consuming holidays. The Tyson Foods, Inc. 7% (USD) 1/15/2028 bond saw a sharp $6 drop in bid price leading up to Thanksgiving - coming on the heels of a month of unpleasent news. In addition to facing numerous downgrades, the Arkansas-based company missed Wall Street predictions in last week's earnings report as well as face a class-action lawsuit citing extensive price-collusion in the chicken-boiler market dating back to 2008.
The North Sea's largest independent oil company, Premier Oil, has pushed back issuing 2.6 billion in debt until after the new year. The strained oil company had planned on revealing the rescue package at the end of September, but pushed back the deadline at the last moment. The 40 institutional lenders included in the syndicate have not been able to finalize the deal citing the scale and complexity of the arrangement as well as current exposure in the sector.
Corporate yields increased considerably following an upset victory from U.S. Presidential-elect Donald Trump on November 8th. This increase can be attributed to investors fleeing for the post-election rally in stocks due to Trump's promise of deregulation. This corporate bond sell-off is captured by the AdvantageData North American High Yield and High Grade Corporate Bond Indices.
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