Corporate America is tapping the convertible bond market at a record pace as companies linked to artificial intelligence drive a surge in demand for debt that often draws extra investor interest in hot markets because it can convert into equity.
Avista Corp (AVA): * Avista Corp (AVA) - ON MAY 14, ISSUED $90 MILLION OF 4.77% BONDS DUE 2029 AND $70 MILLION OF 6.10% BONDS DUE 2056 - SEC FILING. * Avista Corp (AVA) - EXPECTS TO ISSUE ADDITIONAL $70 MILLION OF 6.10% BONDS IN AUGUST 2026 - SEC FILING Source text: Further company coverage:
* AI-linked firms drive surge in convertible bond issuance. * High rates, equity volatility boost appeal of convertibles. * Hedge funds, asset managers seek upside, even from riskier issuers. By Chibuike Oguh.
* Fed policymakers split over inflation risks and future rate cuts. * April meeting saw four dissents, most since 1992, over policy direction. * Market and economist expectations shift toward no rate cuts, some see possible hikes. By Dan Burns.
* US Vice President Vance says lots of progress made in US-Iran talks. * Minutes from Fed's April policy meeting due at 1800 GMT. * US 10-year Treasury yields at an over one-year high. * Traders see 40% chance of US rate hike in December. By Noel John.
* Treasury yields steady near new highs hit overnight. * Nvidia (NVDA) results after bell; Samsung workers set to strike. * Oil prices still elevated; yen hovers around 159 per dollar. * Softer British inflation sends gilt yields lower. By Alun John and Stella Qiu.
* Investors pricing in higher rates in the face of rising inflation. * No end in sight for more than two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee and Harry Robertson.
* U.S. Vice President Vance says progress made in talks with Iran. * Benchmark 10-year Treasury yields near a more-than-one-year high. * Minutes from Fed's April policy meeting due at 1800 GMT. * U.S. Fed to avoid cutting rates this year - Reuters poll. By Pablo Sinha.
Emmanuel Moulin, President Emmanuel Macron's pick to head the Bank of France and his former chief of staff, said on Wednesday in hearings ahead of a vote by Parliament on Moulin's confirmation that he was sure he would run the national central bank in an independent manner.
Although some are puzzled by the coincidence of an artificial intelligence boom and rising borrowing costs, they are closely linked.Beyond the immediate heat of the AI investment frenzy, a long-term productivity surge is lifting estimates of neutral interest rates even as workers' share of the GDP pie declines. The idea remains controversial in some circles.
* Treasury yields hit new highs overnight, steady in Asia. * Japan's Nikkei falls 1.5%, Wall St futures a tad lower. * Oil prices still elevated, yen hovers around 159 per dollar. By Stella Qiu.
* Investor pricing in higher rates in the face of rising inflation. * No end in sight for the over two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee.
* U.S. Vice President Vance says progress made in talks with Iran. * Benchmark 10-year Treasury yields near a more-than-one-year high. * Minutes from Fed's April policy meeting due at 1800 GMT. * U.S. Fed to avoid cutting rates this year - Reuters poll. By Pablo Sinha.
European Union governments are discussing whether former European Central Bank President Mario Draghi, or former German Chancellor Angela Merkel, could represent the bloc in potential negotiations with Russian President Vladimir Putin, the Financial Times reported on Wednesday.
Copper declined to a more-than-one-week low on Wednesday, as a stronger dollar and a rise in U.S. Treasury yields weighed on the market. The most-active copper contract on the Shanghai Futures Exchange lost 1.20% to 103,160 yuan a ton, after touching its lowest since May 8 at 103,040 yuan.
U.S. Treasury Secretary Scott Bessent's jab at Japan's dovish premier may help clear political hurdles for the Bank of Japan to raise interest rates in June, analysts say, though there is uncertainty on whether it can support the yen.
* Bessent says BOJ can do what's needed if granted independence. * Remarks reinforce Washington's preference for higher BOJ rates. * PM Takaichi, aides wary of further BOJ rate hikes. * Key would be whether Ueda can meet PM, analysts say. By Leika Kihara.
Stock markets paused on Wednesday as bond yields steadied just below multi-year highs amid war-driven inflation fears, though yields remain high enough to cloud the outlook for Nvidia's (NVDA) results due later in the day. The benchmark 10-year U.S. Treasury yield hit a 16-month high of 4.687% overnight, while the 30-year yield climbed to 5.198%, levels last seen in 2007.
* Treasury yields hit new highs overnight, steady in Asia. * Japan's Nikkei falls 1.6%, Wall St futures flat. * Oil prices still elevated, yen falls below 159 per dollar. By Stella Qiu.
The U.S. dollar hit a six-week high on Wednesday as investors came to terms with the possible need for higher interest rates to tackle inflation resulting from the Iran war. The uncertainty over when the conflict may end has fanned inflation fears and triggered a global bond selloff, with the yield on the U.S. 30-year Treasury bond hitting its highest level since 2007.
* Investor pricing in higher rates in the face of rising inflation. * No end in sight for the over two-month-long Iran war. * US 30-year Treasury yield at 17-year high. * Yen back near 160 per dollar; traders wary of intervention. By Ankur Banerjee.
Gold prices edged higher on
Wednesday, as optimism over a potential peace agreement between
the United States and Iran tempered concerns around inflation
and interest rates staying higher for longer.
It remains too early to estimate how the use of AI technology will influence inflation, jobs and monetary policy, Philadelphia Federal Reserve Bank president Anna Paulson said on Tuesday, addressing an issue likely at the center of coming Fed deliberations.
U.S. President Donald Trump signed an executive order on Tuesday calling on regulators and the Federal Reserve to review rules that may be stifling financial innovation, including whether the central bank could expand fintech access to its payment rails, the systems that move money between banks.
The current level of interest rates is appropriate for the moment, putting downward pressure on inflation at a time when price pressures remain elevated, Philadelphia Federal Reserve Bank President Anna Paulson said on Tuesday, but she added it was "healthy" that investors had begun considering scenarios where rates might need to rise.
U.S. President Donald Trump signed an executive order on Tuesday calling on regulators and the Federal Reserve to review rules that may be stifling financial innovation, including whether the central bank could expand fintech access to its payment rails, the systems that move money between banks.
G7 finance ministers agreed on Tuesday on the need for action to tackle trade imbalances in a fragmented global economy, saying the current situation was unsustainable with U.S. Treasury Secretary Scott Bessent arguing for more protections against a flood of cheap Chinese imports.
The current level of interest rates is appropriate for the moment, putting downward pressure on inflation at a time when price pressures remain elevated, Philadelphia Federal Reserve Bank President Anna Paulson said on Tuesday, but she added it was "healthy" that investors had begun considering scenarios where rates might need to rise.
* US stocks end lower. * Dollar gains as US yields rise; gold falls. * Trump says US may strike Iran again but that Tehran wants deal. By Caroline Valetkevitch and Harry Robertson. A global stock index fell with 30-year U.S. Treasury yields rising to their highest levels since 2007 on Tuesday, and oil prices eased as investors digested the latest headlines on U.S. talks with Iran to end the war.
The United Nations on Tuesday cut its forecast for global economic growth, saying the Middle East crisis had reignited inflationary pressures and heightened uncertainty. * Global GDP growth is forecast at 2.5% in 2026, compared with an estimated 3.0% in 2025, 0.2 percentage points below the January projection and well below pre-pandemic growth rates.
* Benchmark 10-year Treasury yields near a more than one-year high. * Brent crude oil prices hold above $110 a barrel. * Minutes of Fed's April policy meeting due on Wednesday. By Anjana Anil. Gold prices fell by more than 1% on Tuesday on a firmer U.S. dollar and as persistent inflation fears kept interest rate hike expectations and Treasury yields high.
* Canadian dollar falls 0.1% against the greenback. * Touches its weakest since April 15 at 1.3773. * CPI increases at an annual rate of 2.8% in April. * Bond yields trade mixed across a steeper curve. By Fergal Smith.
Bank of Japan Governor Kazuo Ueda said on Tuesday that the central bank would work closely with the government on the market situation concerning Japanese government bonds. "As for long-term interest rates, we recognise that they have been rising recently, and at a relatively fast pace," Ueda told reporters after a Group of Seven finance chiefs and central bankers' meeting in Paris.
Incoming Federal Reserve Chair Kevin Warsh on Tuesday disclosed an initial round of planned asset sales ahead of being sworn in for the job, though the disclosures did not say who the sales were made to.
Prospective Federal Reserve Chair Kevin Warsh disclosed on Tuesday his initial round of asset divestitures ahead of being sworn in as central bank leader.
Yields on longer-dated Treasuries climbed to new highs on Tuesday amid a global market selloff in longer-dated bonds driven by war-related inflation concerns. The 30-year Treasury bond's yield, which is seen as a barometer of political risk, climbed on Tuesday to 5.197%, its highest in 19 years.
The Federal Reserve will respond as needed with its monetary policy operations to any changes in how the Treasury Department manages a large account of cash currently parked at the central bank, Roberto Perli, the Federal Reserve Bank of New York official responsible for implementing monetary policy, said Tuesday.
* Benchmark 10-year Treasury yields near a more than one-year high. * Brent crude oil prices hold above $110 a barrel. * Minutes of Fed's April policy meeting due on Wednesday. By Anjana Anil. Gold prices fell by more than 2% on Tuesday on a firmer U.S. dollar and as persistent inflation fears kept interest rate hike expectations and Treasury yields high.
A Federal Reserve Bank of New York official responsible for implementing monetary policy said on Tuesday that the central bank's current rate control toolkit would still work in a system allowing banks to hold fewer reserves. New York Fed System Open Market Account Manager Roberto Perli also said the pace of future Treasury bill buying will be determined by market conditions.
* TSX down 0.1% * Canada's annual inflation at 2.8% in April. By Tharuniyaa Lakshmi. Canada's main stock index edged lower on Tuesday in choppy trade, weighed by high Treasury yields, while investors parsed fresh data that showed domestic inflation rose in April. At 10:39 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was down 0.1% at 33,795.69 points.
* Indexes down: Dow 0.5%, S&P 500 0.6%, Nasdaq 0.8% * Akamai Technologies (AKAM) down after announcing senior notes offering. * Software stocks among top gainers. By Ragini Mathur and Utkarsh Hathi. Wall Street's main indexes fell on Tuesday, pressured by consumer discretionary stocks and renewed inflation worries as the 10-year Treasury yield climbed to its highest level in more than a year.
Brazil's central bank governor Gabriel Galipolo said on Tuesday that the country's heavy reliance on sovereign debt linked to the benchmark interest rate Selic weakens monetary policy transmission, as higher borrowing costs end up boosting disposable income for bondholders.
* Benchmark 10-year Treasury yields near a more than one-year high. * Brent crude oil prices hold above $110 a barrel. * Minutes of Fed's April policy meeting due on Wednesday. By Anjana Anil. Gold prices fell by more than 2% on Tuesday as a firmer U.S. dollar and persistent inflation fears kept interest rate hike expectations and Treasury yields high.
Brazil's central bank governor Gabriel Galipolo said on Tuesday the economy is set to face two supply shocks - higher oil prices and the risk of a very strong El Nino - at a time of elevated inflation. Speaking at a Senate hearing, Galipolo said the average of core inflation measures is currently running at the same level as headline inflation, both above the official 3% target.
Chile's central bank warned that an abrupt tightening of global financing conditions - potentially triggered by an escalation of the Middle East conflict - represents the main risk to local financial stability.
The S&P 500 and the Nasdaq opened lower on Tuesday, pressured by a selloff in heavyweight chip stocks and lingering inflation concerns as Treasury yields continued to rise.
The S&P 500 and the Nasdaq opened lower on Tuesday, pressured by a selloff in heavyweight chip stocks and lingering inflation concerns as Treasury yields continued to rise.
Brazil's central bank will not provide forward guidance on monetary policy decisions amid uncertainty stemming from the Middle East conflict, monetary policy director Nilton David said on Tuesday.
Yields on U.S. Treasuries ticked higher in Tuesday morning trading after an earlier dip following an overnight pause in the Iran conflict and a decline in oil prices. The yield on the benchmark 10-year Treasury note was last up 4.2 basis point at 4.627%. It had climbed as high as 4.659% on Monday, which was its highest level in 15 months.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.
Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.
Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.
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