Credit markets remained open to lower-rated high-yield borrowers in the third quarter, helping drive down the number of Chapter 11 petitions filed by U.S. businesses. Easier credit conditions in the commercial real estate debt markets also helped reduce the number of real estate bankruptcies. For bankruptcy practitioners, the most notable filing of the third quarter likely was Detroit’s historic [...]
Click here for CHART.
Federal Reserve policy actions have not rigidly followed the interest-rate path recommended by a conventional Taylor Rule during the past decade. Click HERE for more.
Penn Virginia may sell assets to pay down a revolving line of credit as it seeks to cut indebtedness and gain positive free cash flow by 2016. Click HERE for more.
By Peter Gosselin, senior health-care policy analyst, Bloomberg Government Although the Affordable Care Act has been law for three and a half years, one third of the funds going to the top contractors working on the federal exchanges were awarded in the six months before the new insurance marketplaces opened Oct. 1, a Bloomberg [...]
U.S. debt-ceiling deal has unleashed the biggest wave of municipal borrowing since July, driving local bonds to the cheapest in almost two months versus Treasuries and luring buyers such as Deutsche Bank AG’s private-wealth unit. Click here to continue reading.
The U.S. economy is clearly transitioning to a “new normal.” Considering the weak trend in demographics and productivity growth, the potential growth rate of the U.S. economy could be considerably slower than its 2.5-3.0 percent normal pace, with the likelihood that potential GDP in real terms will probably average only around 1.75-2.00 percent in coming years. Click here to continue reading.
Individual investors are buying record amounts of bullish U.S. structured notes tied to the Brazilian real, the best-performing currency against the dollar over the last two months. Banks from Goldman Sachs Group Inc. to Deutsche Bank AG sold $73.5 million of securities that gain when the real appreciates against the dollar, according to data compiled [...]
The growth outlook for the final three months of the year should brighten somewhat as consumers pick up the pace of spending during the holiday shopping season and as business fixed investment rebounds. Meanwhile, the Federal Reserve has hinted it will probably wait to reduce the pace of its asset purchase program until spring next year, which should help support improved financial conditions and equity [...]