News Results

  1. Treasury yields end lower for the week as global trade tensions spur haven demand
    MarketWatch | 04:14 PM EDT

    By Mark DeCambre, MarketWatch, Sunny Oh. Trump threatens tariffs on car imports from EU. Treasury yields held their ground on Friday after a week that saw the traditional haven boosted by anxieties centered on trade clashes between the U.S. and major trading partners such as China and the European Union.

  2. Fed may soon have to make second adjustment to its tool for raising rates
    MarketWatch | 03:10 PM EDT

    Fed Chairman Powell had expected first fix would have been enough. The Federal Reserve may soon have to make a second adjustment to its tools for lifting interest rates only days after Fed Chairman Jerome Powell had said he didn't expect another tweak was needed. Because the Fed bought so many assets during the financial crisis, it had to create a brand new system for pushing rates up when the tightening cycle started in 2015. More than two years later, it is finding it still doesn't...

  3. Fitch places Disney's A rating on review for possible downgrade
    MarketWatch | 02:23 PM EDT

    Fitch Ratings placed The Walt Disney Co.' s senior unsecured A rating on review for a possible downgrade on Friday, citing the material increase in leverage that Disney's (DIS) revised bid for assets of 21st Century Fox Inc. (FOX) would create. The move further "incorporates a degree of uncertainty related to the final terms of the transaction due to the potential for a competing offer from Comcast Corp.," said the agency. Fitch estimates that the new terms will increase Disney's (DIS) leverage to...

  4. Trade-war tracker: Here are the new levies, imposed and threatened
    MarketWatch | 12:26 PM EDT

    As rhetoric on global trade ratchets higher, here's a look at what new tariffs have been imposed and what has been threatened. The context of these tariffs is the trade deficit the U.S. runs, which totaled $568 billion in 2017. The Trump administration maintains that the size of that gap is due to unfair trade agreements. President Trump first announced his intention to impose steel and aluminum tariffs on March 1, and the Dow Jones Industrial Average has lost about 1% since that...

  5. Trade tensions will slow the Fed's rate-hike path, solving a bond-market conundrum
    MarketWatch | 10:49 AM EDT

    A trade war could cut short the Fed's tightening cycle, BAML analysts say. Analysts at Bank of America Merrill Lynch have offered a neat way to make sense of the bond market's reaction in the event of a trade war, which has confused investors who say tariffs can tug Treasury yields in opposite directions. A global economy reeling from a trade-driven slowdown could prompt the Federal Reserve to cut the number of interest- rate hikes in its current tightening cycle, stirring a rally in...

  6. U.S. economy poised for big second quarter, IHS flash Markit PMIs show
    MarketWatch | 09:52 AM EDT

    An index that tracks U.S. manufacturers and a gauge for service-oriented companies both tapered off slightly in June but still showed the U.S. economy expanding at a strong pace, according to IHS Markit's flash PMIs. The manufacturing index slipped to a seven-month low of 54.6 from 56.5. The services barometer dropped to a two-month low of 56.5 from 56.8.

  7. To free Fannie and Freddie, their regulator may bypass do-nothing Congress
    MarketWatch | 08:08 AM EDT

    The companies' regulator struck a deal with Treasury in December, and one analyst thinks that's a blueprint. Is a Fannie Mae-Freddie Mac endgame finally in sight? For years, the two mortgage finance giants at the heart of the 2008 housing crisis have languished as wards of the state, stuck in federal "conservatorship" as Congress repeatedly failed to find a framework for a future housing finance system that would offer them a way out.

  8. Mortgage rates retreat, capping a grim spring selling season
    MarketWatch | 08:02 AM EDT

    The 30- year fixed-rate mortgage has averaged 4.40% so far this year, up from 3.99% in 2017. Rates for home loans pulled back in line with bond yields as trade war fears sent investors piling into safe assets. The 30- year fixed-rate mortgage averaged 4.57% during the June 21 week, down from 4.62%, mortgage provider Freddie Mac said Thursday.

  9. What Is Ailing the Drug Industry?
    MarketWatch | 07:07 AM EDT

    It's a golden age for drug development, but the major pharmaceutical companies aren't enjoying the good times. U.S. health-care spending regularly grows faster than inflation and has reached about 18% of gross domestic product. Prescription drugs are a major component of that sum.

  10. Every bank had enough capital after stress test, Fed says
    MarketWatch | 06/21/18 04:46 PM EDT

    All of the banks met the regulatory minimums for capital after undergoing what's called the "severely adverse" stress test that would cause $578 billion in losses for 35 lenders, the Federal Reserve announced Thursday. The Fed said the aggregate common equity tier 1 capital ratio would fall from an actual level of 12.3% in the fourth quarter of 2017 to 7.9%. That is just the first round of the stress tests, as the results of the Comprehensive Capital Analysis and Review are announced...

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.

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