Biden Details Plan to Rebuild Infrastructure and Reshape the Economy From:
What begins with the letter I ?
Infrastructure is essential and sometimes taken for granted. Pipes carry drinking water to our homes, offices, and healthcare facilities, and carry away sewage and wastewater. Highways, airports, railroads, waterways, roads, and bridges make efficient transportation of goods and safe travel possible. Energy systems and transmission lines keep the lights on and the stove cooking. Broadband data transmissions systems assure high speed internet access.
On Thursday, President Biden and a bipartisan group of senators announced that progress had been made on the framework for a bipartisan infrastructure plan. Investors were happy to hear it. Randall Forsyth of Barron s reported:
The Federal Reserve will deliver a volatile summer for markets
moneyweek.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from moneyweek.com Daily Mail and Mail on Sunday newspapers.
Investors considering SGDM over the near-term don’t need to look far for an ally because they’ve got one in the Federal Reserve. The Fed’s bond buying is seen as a catalyst for bullion, which could turn into a spark for SGDM.
“In the process, the Fed’s Treasury bondholdings zoomed past those of foreign nations parked at the U.S. central bank, which have remained flat around $3 trillion. And overall foreign holdings of Treasuries fell by $591 billion in the latest 12 months,” reports Randall Forsyth for
. “The Fed’s massive securities purchases fueled a $4.2 trillion explosion in the broad M2 money supply in the year through February. That, in turn, helped send the U.S. Dollar Index tumbling 13% from its peak last March to the turn of the year. Since then, it’s recovered by about 3%.”
February 4, 2021
With depressed yields on municipal bonds and Treasuries and firming in the high-yield corporate bond market, investors are again taking a look at bank loan funds such as the
SRLN invests in senior loans given to businesses operating in North America and outside of North America. The Portfolio may invest in senior loans through the loans directly via the primary or secondary market or via participation in senior loans, which are contractual relationships with an existing lender in a loan facility where the loan portfolio purchases the right to receive principal and interest payments.
“Income investors have been moving back into this sector in their quest for high yields, as bonds offer little return but significant risk. Loan mutual funds saw their biggest three-week inflows since 2017, totaling some $2.5 billion, according to a Jan. 29 Bank of America research note,” reports Randall Forsyth for
Depressed interest rates are prompting advisors and investors to embrace income-generating assets beyond the safest bonds. The
BKLN targets the S&P/LSTA U.S. Leveraged Loan 100 Index. That index “is designed to track the market-weighted performance of the largest institutional leveraged loans based on market weightings, spreads and interest payments,” according to Invesco.
Leveraged loans usually attract investors who are looking to generate income in a rising interest rate environment due to their floating rate component. However, central banks and agencies like the International Monetary Fund warn that credit quality is declining – bank loans are usual for highly leveraged companies and are rated speculative-grade.
vimarsana © 2020. All Rights Reserved.