Monthly Archives: June 2022

(Bloomberg) -- Bonds in almost every corner of the $63 trillion global debt market are bouncing back as investors begin to see value once again in fixed-income assets.

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Global investment-grade debt has returned almost 1% in May, the first monthly gain since July, while US Treasuries are heading for their best month since November, according to Bloomberg indexes. A gauge of global corporate debt is set for its biggest advance since July, while emerging-market sovereigns from Mexico to Malaysia are also in the green.

Investors point to a bevy of reasons for the recovery. These include signs the global economy is in danger of recession, speculation the rush of central-bank interest-rate hikes are now largely priced in, and the simple fact yields have risen enough to make them attractive.

I expect global bonds to deliver positive returns for the rest of this year, said Akira Takei, a global fixed-income money manager at Asset Management One Co. in Tokyo, who has been buying Treasuries. Yields have fallen from their peaks because more and more investors see value in bonds. The worst of the bond market is behind us.

Asset managers including pension funds and insurers last week ramped up bullish wagers on Treasuries to the highest levels since April 2020. At the same time, JPMorgan Asset Management, Morgan Stanley and Pacific Investment Management Co. have all gone on record saying the worst of the global debt selloff looks to be over.

The rally in bonds has already pushed U.S. 10-year yields down to 2.80% from a three-year high of 3.20% set in early May. Yields on similar-maturity German bunds have dropped to 1.04% from a peak of 1.19% three weeks ago.

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Its a good time to increase your allocation to fixed income, said Tai Hui, chief Asia market strategist in Hong Kong at JPMorgan Asset, which oversees $2.5 trillion. With the valuation de-rating in fixed income -- if you look at credit spreads, if you look at risk-free rates -- the fixed income world is starting to look attractive again.

Still, renewed inflation concerns may derail the bond recovery. Record German inflation spurred a selloff in bunds on Monday, while similar-maturity U.S. yields jumped 10 basis points on Tuesday after Federal Reserve Governor Christopher Waller said he wants to keep raising borrowing costs in half point steps until price pressures ease back to target.

There are also laggards in the broader fixed-income market.

Investors remain skittish on Chinese debt as Covid-linked lockdowns and uncertainties over the nations troubled property market deter buyers. While returns have generally been picking up, credit spreads have still widened in some areas, including Asian investment-grade bonds, amid skepticism about whether the fixed-income recovery will last.

Read More: China Contagion Fears Return as Greenland Stress Hits SOE Bonds

Credit investors should position for a potentially bumpy ride over the foreseeable time horizon, said Paul Lukaszewski, head of corporate debt for Asia Pacific at abrdn in Singapore. We continue to see China as our biggest source of credit risk in Asia.

Just last week, a surprise proposal by state-backed Greenland Holdings Corp. to delay a bond repayment sparked fears of wider contagion risks among even higher-rated Chinese developers. Meanwhile in sovereign markets, Sri Lanka has fallen into default, while concerns are mounting over Pakistan.

Others are more optimistic, even on China. Asian corporate bonds will soon be attractive for investors who believe an economic slowdown remains a way off, said Neeraj Seth, head of Asian credit at BlackRock Inc. in Singapore.

If you arent worried about recession right now, you are getting closer to the point where its an attractive entry point in the market from the credit or fixed income side, he said in an interview on Bloomberg Television. We are positive on investment grade credit and selectively on high yield in Asia, he said.

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Bonds Rally Everywhere in May With Bulls Saying Selloff Is Over - Yahoo Finance

On Friday, the S&P 500 broke a 7-week losing streak, the index's longest since 2001.

Concerns about a slowing economy and tighter monetary policy from the Federal Reserve have been at the center of this decline. Last week's rebound likely has some investors wondering if the worst is over for stocks, and asking if we're set to see a comeback similar to what followed the pandemic-induced bear market of 2020.

One strategist, however, doesn't see the ingredients for this kind of rebound in the current environment.

"There's no V-shaped bottom here," Michael Antonelli, managing director and market strategist at Baird told Yahoo Finance Live on Friday.

"V-shaped bottoms are completely comprised of the Fed getting really super friendly, putting a tailwind [behind the market], [or] some sort of fiscal impulse," Antonelli said. "Neither of those are happening."

Last week, the minutes from the Fed's latest policy meeting suggested that after raising its benchmark interest rate by 0.50% in early May, the central bank is set to do the same in both June and July.

And if history is any guide, expect the current near-bear market to last roughly a year, Antonelli says.

"If you're looking peak-to-trough, the average bear market is about 338 days, so a little bit less than a year," Antonelli told Yahoo Finance. "If youre talking peak, to trough, [and] back to peak, thats about 600 days, so a little over a year and a half. It is going to take us some time to get through this."

Year-to-date, the S&P 500 (^GSPC) is down nearly 13%, the Nasdaq (^IXIC) is down more than 22%, and the Dow (^DJI) is off more than 8%.

Over the long-term, however, history suggests U.S. stocks tend to remain resilient and bounce back after sharp declines. Following all 11 of the worst years in history, Antonelli notes, the index was higher five years later.

Ines is a markets reporter covering equities. Follow her on Twitter at @ines_ferre

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There won't be a 'v-shaped bottom' in this market: Strategist - Yahoo Finance

Whether hot inflation persists or were heading towards a bear market, Suze Orman, personal finance expert, says you should still lean on stocks for the long haul.

Over the long-term stocks have produced the best gains after factoring in inflation, writes Orman in a blog post. Bonds and cash struggle to keep pace with inflation; only stocks have a track record of earning more than inflation.

Orman's advice is sound. But some areas of the stock market perform better than others during periods of high inflation.

Whether youre looking to invest thousands of dollars or just a bit of savings, the following three sectors might give you an extra boost for the rest of 2022.

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In her blog post, Orman says investors should be prepared for stocks to go through periods where their value dips.

But that also offers the chance to snap up more top-shelf stocks at bargain-bin prices. When the next pullback happens (and it will happen), theres one place investors might want to look to first: banks.

Unlike the vast majority of other industries, banks actually fare well when the Fed tightens up because of their asset-sensitive nature. When interest rates rise, bank assets like bonds and loans tend to climb higher than their liabilities such as deposits.

Rising rates also mean that banks can earn a wider spread between what they pay out in savings account interest and what they earn from Treasuries.

Another great thing about buying bank shares is its a bit like shooting fish in a barrel.

Just pick two or three of the countrys largest banks, like Bank of America, Citigroup and Wells Fargo, and you should have all the positive exposure to rising interest rates you need.

Even when people slash their budgets to help offset rising prices, we know those auto and life insurance premiums will keep rolling in no matter what.

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Which means although insurance may not be the most exciting industry, its a defensive business that can provide plenty of portfolio protection especially since insurers typically earn better returns on their float when rates rise.

And on top of that, insurers often pay their shareholders dividends, which means you can count on a little extra cash a few times a year.

For those interested in investing in insurance, Chubb, Allstate and MetLife are some of the big, blue-chip names in the industry.

When it comes to investing in precious metals, these stock picks can be worth their weight in gold.

Gold and silver have long been considered safe haven assets, meaning when all else fails, their value doesnt really tarnish.

You can always buy precious metal bullion or coins, but mining stocks and ETFs allow you to invest in the space at a low cost and without needing to find storage.

Moreover, large diversified mining companies like Rio Tinto and Freeport-McMoRan also dig up metals like copper, which is currently experiencing booming demand due to its role in electric vehicle production.

Historically, the best time to make money from metals is when inflation is poised to keep increasing like right now.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

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Suze Orman: This is the only asset class with a track record of 'earning more than inflation' here are 3 simple ways to get exposure for the rest of...

Chevrolet Bolt EV

The 2023 Chevrolet Bolt will be the cheapest EV you can buy in America with a caveat.

Earlier this week General Motors (GM) revealed pricing for the 2023 version of the Bolt EV. The base 1LT and better equipped 2LT models are now priced at $26,595 and $29,795 respectively, which GM says is a price cut of $5,900 per model compared to last year.

The larger Bolt EUV is getting an even bigger price cut, at least nominally speaking, of $6,300.

For the regular Bolt EV, that price represents a massive 18.5% price cut from a year ago, at a time when everything from components to labor costs are rising considerably in this country.

GM says even with the big price cut, no features have been removed or trimmed compared to last years model.

"Nothing has been removed," GM product specialist Shad Balch told the Detroit Free Press. "This reflects our ongoing desire to make sure Bolt EV/EUV is competitive in the marketplace. As weve said, affordability has always been a priority for these vehicles."

Though 2023 pricing hasn't been announced yet, the 2022 Nissan Leaf, which was the cheapest EV offered in the U.S., starts at $27,400. If you dont include the $7,500 federal tax credit (that Nissan still qualifies for, but GM does not), the 2023 Bolt EV is the cheapest car in America.

So technically the Bolt EV is the cheapest EV in America when it goes on sale in 2023, not including the federal tax credit (which brings the Nissan Leaf down to a whoppingly low $19,900). The bad news for Nissan (7201.T) is the Leafs cumulative total sales in the U.S. are around 175,000 units, and when the 200,000 threshold is reached the federal tax credit is halved.

TANGERANG, INDONESIA - NOVEMBER 12: Nissan Leaf electric car displayed during the GAIKINDO Indonesia International Auto Show (GIIAS) at Indonesia Convention Exhibition on the outskirt of Jakarta, Tangerang, Indonesia on November 12, 2021. This first auto exhibition during pandemic COVID-19 organized by the Association of Indonesian Automotive Industries GAIKINDO open for the public from 12 to 21 November and joined by more than 300 brands in the supporting industries and highlighted around 150 new vehicles. (Photo by Anton Raharjo/Anadolu Agency via Getty Images)

Also on the con side for the Nissan Leaf is that it only has 149 miles of range (EPA rated), whereas the cheapest Bolt EV has GM-estimated 259 miles. A buyer needs to step up to the Nissan Leaf S Plus to get 226 miles of range (EPA rated), but that model starts at $32,400.

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The big point here is GM is doing what it can to bring an affordable, mass market EV option with decent electric range to middle-class buyers who want to go electric. This is a part of the market with a dearth of options, with only the Nissan Leaf S Plus as its only competitor, though Fisker (FSR) is promising that its Ocean EV SUV will start under $40,000 when it arrives sometime next year.

If the country is to hit the White Houses goal of having 50% of vehicle sales be all-electric by 2030, U.S. buyers will need many more cheaper EV options.

Pras Subramanian is a senior autos reporter for Yahoo Finance. You can follow him on Twitter and on Instagram.

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GM slashes price of 2023 Chevy Bolt, making it the cheapest EV in America - Yahoo Finance

We're just over 12 weeks away from Week 0 of the college football season on Aug. 27. While we still have almost an entire summer to get through before our Saturdays return to being filled with college football, BetMGM has already posted its season win totals and conference odds for the upcoming season.

Right off the bat, you'll notice that the highest projected win total for any team this season is just 10.5 wins. This is in stark contrast to last season, when Alabama, Ohio State, Clemson and Oklahoma all had win totals listed at 11 or higher. This year, Alabama, Ohio State, Georgia and Clemson are tied for the highest win total in the country at 10.5.

In case this is your first year betting on college football win totals, there is some important information you need to be aware of.

First and foremost, you must place your bets before the season starts and your money will be held until the regular season is over in late November. Your bet is locked in at the odds you get when you place your bet, for better or worse.

Also, only regular-season games count. Almost every team plays 12 games. Out of conference games do count toward the win total, but conference championship games, bowl games and the college football playoff do not.

The third thing to be aware about is the juice required on some of these bets. Unlike a normal football game where the spread is set and both sides are juiced at -110, the juice varies greatly on win totals. Due to the fact each win means so much, oddsmakers will adjust the juice rather than moving a team's win total up or down.

A good example of this is in the SEC. Florida, LSU, Ole Miss and Tennessee all have win totals of 7.5. However, Ole Miss and Tennessee's over side is juiced at -175, while LSU and Florida's juice is much lower at -105 and -110 respectively. While the win total might be the same, the oddsmakers are telling you that they think it's much more likely Ole Miss and Tennessee reach eight wins than the two other schools.

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Most would view Clemson's 2021 season as a disaster, but even in a disastrous season, the Tigers went 9-3 and won a bowl game. Dabo Swinney lost both coordinators this offseason and there's still plenty of questions about D.J. Uiagalelei at quarterback, but Clemson is back in the favorite role in the ACC. The Tigers are -140 to win the conference and their projected win total is set at 10.5, tied for highest in the country.

Miami and North Carolina State are viewed as the biggest threats to Clemson to win the conference, as both schools sit at +700 to win the ACC. Those two schools, along with Wake Forest and Pittsburgh, have projected win totals of 8.5. Syracuse (4.5 wins), Georgia Tech and Duke (3.5 wins) are projected to finish at the bottom of the conference.

Alabama and Georgia met in the national championship game last season, and they're the two current favorites to win it all in 2022. Georgia took home the hardware this past January, but Alabama is the slight favorite ahead of the Bulldogs in both the national championship odds and odds to win the SEC.

Bryce Young and Alabama are projected to be near the top of college football once again. (Emilee Chinn/Getty Images)

It's a two-horse race in the SEC, as the Crimson Tide are -125 to win the SEC while Georgia is +150. Both teams are eye-popping -200 favorites to go over 10.5 wins in the regular season as oddsmakers view it rather unlikely that either team drops two games before the SEC championship game.

Outside of the two powerhouses, the rest of the SEC is pretty compacted in terms of projected win totals:

8.5 wins: Texas A&M, Kentucky

7.5 wins: Ole Miss, Tennessee, Florida, LSU

6.5 wins: Arkansas, Mississippi State

5.5 wins: South Carolina, Auburn, Missouri

Of course, Vanderbilt is projected to finish at the very bottom of the conference and their projected win total is just 2.5 wins.

USC made a big splash when it lured Lincoln Riley from Oklahoma, and oddsmakers are expecting that move to potentially pay immediate dividends. Joining Riley in Southern California will be former Sooners quarterback Caleb Williams, along with a swarm of other transfers, including Biletnikoff Award winner Jordan Addison. USC is a +200 favorite to win the conference, and it has the highest win total in the conference at 9.5.

However, the Trojans will face some serious competition. Utah is +250 to win the conference, and Oregon is +300. Both teams have projected win totals of 8.5. UCLA (8 wins, 10-to-1) and Washington (7.5 wins, 12-to-1) are also in the picture. It's worth noting that the Pac-12 is taking a page out of the Big 12's book and will now send the two best teams in the conference to the championship game, regardless of which division they're in.

In 2021, Michigan put an end to a run of four straight Big Ten championships for Ohio State. However, the Buckeyes are right back in the favorite role for 2022. Ohio State is a prohibitive -250 favorite to win the conference this upcoming season, and it is a -200 favorite to go over 10.5 wins during the regular season. CJ Stroud, the quarterback for Ohio State, is the current Heisman favorite at +200.

Coming off a college football playoff appearance and Big Ten championship, Michigan is +900 to repeat as conference champion this upcoming season. It has the second-highest win total in the conference at 9.5. Wisconsin and Penn State are both 14-to-1 to win the Big Ten, and both teams have projected win totals of 8.5.

Michigan State, Purdue, Iowa, Minnesota and Nebraska all have their preseason win totals set at 7.5. Maryland, Illinois, Rutgers, Indiana and Northwestern are all projected to be at best fighting for bowl eligibility, as their win totals range from 3.5 to 5.5 wins.

Despite losing their coach and starting quarterback during the offseason, the Oklahoma Sooners have opened as the favorites to win the Big 12. Lincoln Riley and Caleb Williams have been replaced by Brent Venables and Dillon Gabriel, and Oklahoma looks to return to the top of the conference. Baylor won the conference in 2021, marking the first time since 2014 that the Sooners didn't end the year calling themselves Big 12 champions.

Oklahoma is +175 to win the conference, and its 9.5 projected wins are the highest in the Big 12. Texas is right on its heels, as the Longhorns look to rebound from an embarrassing season. Texas is +230 to win the Big 12 and -200 favorites to go over 8.5 wins.

Behind those two, Oklahoma State is +700 to win the conference. Last year's champion, the Baylor Bears, are +900 to repeat the feat. TCU, West Virginia and Iowa State are all between 10-to-1 and 18-to-1 to win the conference. As usual, Kansas brings up the rear with a projected win total of 2.5 wins and 100-to-1 odds to win the conference.

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College football betting: Alabama, Georgia and Ohio State top projected win totals - Yahoo Sports

(Bloomberg) -- Deutsche Bank AG and its asset management unit had their Frankfurt offices raided by police, adding to the legal headaches facing Germanys largest lender.

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Law enforcement officials on Tuesday morning entered the twin towers where Germanys largest lender is headquartered, as well as the nearby premises of DWS Group, according to a statement from the prosecutor that confirmed an earlier Bloomberg report. The search is related to accusations of greenwashing against the asset manager.

We have continuously cooperated fully with all relevant regulators and authorities on this matter and will continue to do so, said a spokesman for DWS. Deutsche Bank said that the measures are directed against unknown people in connection with greenwashing allegations against DWS.

DWS has faced regulatory probes in the US and Germany after its former chief sustainability officer, Desiree Fixler, alleged last year that the company inflated its ESG credentials. As well as adding to the list of regulatory and legal issues for Deutsche Bank Chief Executive Officer Christian Sewing, the raid is a high-profile early example of lenders facing legal consequences for greenwashing.

DWS shares fell more than 5% on the news and Deutsche Bank declined as much as 2.6%. While DWS is publicly listed, Deutsche Bank owns an almost 80% stake.

Fixler has said that DWSs claims that hundreds of billions of its assets under management were ESG integrated were misleading because the label didnt translate into meaningful action by relevant fund managers. DWS has since stopped using the label.

The Frankfurt prosecutor said it started its investigation in January, triggered by reports on Fixlers claims. It since found sufficient indications that contrary to the statements in the sales prospectuses of DWS funds, ESG factors actually only played a role in a minority of investments.

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The raid involved about 50 people including staff from watchdog BaFin, one person said. Its targeting as-yet-unidentified DWS staff and executives.

DWS CEO Asoka Woehrmann fired Fixler in March last year, saying in a memo to staff that her unit hadnt made enough progress. She sued for unfair dismissal but lost the case before a Frankfurt labor court in January.

German police are doing are very good and thorough job, Fixler said by phone. I am pleased to see this investigation is deepening to obtain further evidence.

Deutsche Banks top echelon has been drawn into the greenwashing affair as well. Regulators probing the issue have asked the lender about the role of deputy CEO Karl von Rohr, who is also the chairman of DWSs supervisory board. He was the main recipient of Fixlers email when she first flagged her ESG concerns to DWS shortly after she was fired. Von Rohr helped arrange an external audit into her claims that cleared DWS, people familiar with the matter have said.

For Woehrmann, the raid is another blow after he faced scrutiny over his use of personal email for business purposes and the role his relationship with a German businessman played in deals. Sewing has backed Woehrmann so far, not least because DWS has been performing well under him. But the negative news flow has frustrated the lenders leadership, Bloomberg has reported.

The latest raid comes about a month after Deutsche Banks headquarters were searched over suspicions that it was too late in reporting potential money laundering. While Sewing has long sought to shake off Deutsche Banks past of heavy fines and mend relationships with regulators, a number of new issues have popped up since he took office four years ago.

The bank recently was found in breach of a deferred prosecution agreement with the U.S. Department of Justice, and it received a scathing letter from the U.S. Federal Reserve over deficient controls last year. BaFin has initiated a probe of Deutsche Bank over private communications and the lender is facing a similar investigation in the US, Bloomberg has reported.

(Updates with Fixler statement in 10th paragraph.)

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The war between Brooklyn Nets star Kevin Durant and the NBA media continued this week in a series of tweets stemming from, of course, something Stephen A. Smith said on ESPN's "First Take."

Durant took offense when Smith said Michael Jordan changed the game of basketball for the worse because of how he "individualization the sport." Smith argued the NBA focused more on players rather than teams after Jordan's ascension which negatively changed the dynamic of the game.

"Michael Jordan is responsible as much as anybody for changing the game for worse," Smith said. "He was so phenominal that the NBA marketed the individual, the audience gravitated towards the individual and the game became a bit more individualized. ... What I'm saying is you were thinking 'team' until Jordan elevated it to another level. And from Jordan then you had the Kobes and the Vince Carters and others that came along thereafter and the individualization of the sport particularly because of the money that came with it became more of a focal point.

Durant refuted that idea and instead suggested in a tweet on Thursday that media personalities like Smith, Skip Bayless and Shannon Sharpe actually changed the game for the worse. Not the players.

That ignited a series of reply tweets from other fans and journalists. The first being, of course, Smith himself. The ESPN analyst played the "we are legion" card by claiming there are "thousands more" media personalities like himself who are "not going away."

Eddie Johnson, a color analyst for the Phoenix Suns, disagreed with Smith's argument but responded to Durant's tweet by calling today's athletes "too dam (sic) sensitive." To that Durant responded that media members are actually the ones who are too sensitive and "can't take what ya'll dish out."

This isn't the first time Durant clashed with the media. His social media fights have been the stuff of legend online, and he's gone after just about everyone fans and journalists alike.

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He called out Shannon Sharpe of "Undisputed" in 2021 for talking about a fake quote and then posted a photo showing Sharpe blocked Durant on Twitter. He clapped back at Chris Broussard in 2019 for suggesting a Warriors title without him would be Durant's "worst nightmare." He even called C.J. McCollum a "snake in the grass" in 2018 after the then-Blazers guard called Durant's decision to play for the Warriors "soft" on his podcast. Back in 2015, Durant called NBA writer Chris Palmer a "dumba**."

Durant eventually publically spoke about his frustrations with how he was represented by the media during his tenure with the Golden State Warriors earlier this year with the Ringer. He said he felt isolated from the rest of the coverage of the team and subject of more scrutiny for his actions than his teammates.

I just think I deserved a little bit more respect than that. I came out here and gave back money, sacrificed my name, and went out here and sacrificed my body every night to be the best that I can be. I just asked for a little bit more respect to wait until after the season than to badger me every day, all year with questions like that [about free agency]. I thought it was unfair to me and the whole group to even think about anything that was going to happen after the year. It was unprofessional, in my opinion.

This certainly won't be the last of Durant's Twitter feuds, so long as people like Smith have his attention with their fiery takes.

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