|Bid||131.80 x N/A|
|Ask||132.30 x N/A|
|Day's range||119.80 - 134.00|
|52-week range||86.40 - 11,395.00|
|Beta (5Y monthly)||N/A|
|PE ratio (TTM)||3.12|
|Forward dividend & yield||0.24 (20.24%)|
|Ex-dividend date||16 Apr 2020|
|1y target est||N/A|
Insiders are buying these two FTSE 100 (INDEXFTSE; UKX) shares. That's a good sign, says Edward Sheldon. The post Two FTSE 100 shares that have seen insider buying in the stock market crash appeared first on The Motley Fool UK.
(Bloomberg) -- Investors are finally warming up to the high-yield market, piling into a handful of new deals and propelling inflows to a record high.Junk bond funds took in $7.09 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record. The cash influx comes on top of three new high-yield offerings Thursday, opened up by the success of deals from Carnival Corp. and YUM! Brands Inc. earlier this week.Issuers are seeing a resurgence in risk appetite, as massive demand for new bond sales has allowed companies to go bigger and bolder with their debt offerings. T-Mobile US Inc. is issuing $19 billion of secured investment-grade bonds in the year’s second-largest sale, while Tenet Healthcare Corp. and TransDigm Group Inc. were able to boost the size of their high-yield offerings.Investment-grade issuance in the U.S. set a new weekly record, with T-Mobile and Oracle Corp. pushing supply to $110.9 billion through Thursday, edging past last week’s total. Issuers came forward with strong reception despite a record high number of U.S. jobless claims, on top of 17 new deals in Europe.Credit investors’ desire for European corporate debt showed no sign of easing as they threw more than 70 billion euros ($76.5 billion) toward new European bond offerings in just one day. Among the big ones today were oil majors BP Plc and Royal Dutch Shell Plc, taking advantage of rising oil prices after China said it would boost its reserves.“Primary market activity has resumed with a vengeance,” said Wolfgang Bauer, a fund manager at M&G Plc. “It’s fair to say that market functionality in the European investment-grade market, particularly on the primary market side, has noticeably improved over the past week.”U.S.T-Mobile was by far the largest deal on the docket today, and the second-largest this year coming behind Oracle. Investment-grade issuance reached $32.1 billion Thursday.Tenet, TransDigm and Restaurant Brands are bringing high-yield offerings, following YUM! Brands which reopened that market MondayCarnival, though technically investment-grade rated, was run off the high-yield syndicate desks and was able to boost the size and cut the coupon WednesdayFor deal updates, click here for the New Issue MonitorFunds that invest in high-yield corporate debt saw investors add $7.09 billion for the week ended Wednesday, according to Refinitiv Lipper data. Investment-grade funds saw continued outflows as $8.47 billion was withdrawn Boeing is offering buyouts to its entire staff of 161,000 people and weighing new output reductionsPimco sees opportunities in bonds issued by high-quality companies in the utility, power, health care, cable and telecom sectors, according to Mark Kiesel, the firm’s chief investment officer for global creditBankrupt shale driller Alta Mesa Resources has a tentative deal to sell itself for $220 million, down from $320 million before the buyer demanded a discount because of the coronavirus pandemicBanks that agreed to help finance leveraged buyouts are starting to feel the pain from a freeze in the market for risky corporate debtEuropeOil giants BP Plc, Royal Dutch Shell Plc and OMV AG all offered euro notes Thursday, capitalizing on a boost in oil prices after China moved forward with plans to bolster its reserves.Lloyds Bank Corporate Markets Plc and British American Tobacco Plc rounded out a total of 17 issuers that sold EU25.46bRampant demand has allowed companies to chop pricing on their bonds, with Schneider Electric SE pulling in a staggering 8.8 billion euros of orders for a 500 million-euro seven-year noteMore triple-B rated companies dove into the market, including LafargeHolcim“While last week the focus had still been firmly on issuers at the higher end of the investment-grade quality spectrum, this week BBB-rated issuers have joined the new issue pipeline,” said M&G’s BauerCorporate bond spreads continue to ease from the highest levels since 2012, falling 3 basis points to 239 basis points on WednesdayDefault-swaps insuring the highest-rated corporate debt remain elevated at about 105 basis points. Nonetheless, this compares to a peak of about 138 basis points reached last month, according to a Bloomberg Barclays indexBanks may ask authorities to advise against calls on some instruments if the economy deteriorates further, Jakub Lichwa, a strategist at Royal Bank of Canada, wrote in a noteAsiaThursday was a down day for credit in Asia. Yield premiums on Asian dollar bonds and the cost of insuring debt against default in the region both increased, as more dour news on the coronavirus pandemic limited risk-taking. Read more about that here.Spreads on top-rated Asian dollar bonds were around 10 basis points wider Thursday, according to traders, after rising 3 basis points Wednesday. They are headed for a seventh straight week of increases, the longest such streak in more than a year, according to a Bloomberg Barclays indexThe Markit iTraxx Asia ex-Japan index of credit-default swaps rose about 5-8 basis points on Thursday, according traders. The gauge widened 13 on Wednesday, according to CMA dataChinese investment-grade dollar bonds may continue to outperform other emerging-market peers, says Todd Schubert, head of fixed-income research at Bank of Singapore Ltd. Better-rated Chinese notes are often government related and seem to be considered a safe haven in emerging economies, he saysSouth Korea’s 20 trillion won ($16 billion) bond stabilization fund started buying corporate notes and commercial paper from today, the Financial Services Commission said. The regulator believes the fund will act as a safety net for the marketA sale of asset-backed securities by Korean Air Lines Co. showed carriers pummeled by the coronavirus outbreak can still issue debt, though at a steep cost. Here’s a chart showing the tumble in the airline’s dollar notes:For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- In investing as in comedy, timing is everything — a lesson holders of U.K. property funds are about to (re)learn at their cost. In the wake of the U.K.’s 2016 referendum to leave the European Union, British property funds were among the investments quickest to suffer as asset managers trapped $23 billion by halting redemptions in seven funds. With the global pandemic threatening to trash the economy, U.K. real estate vehicles are again at the vanguard of illiquidity — casting renewed doubts over their suitability as investments that offer daily withdrawal rights.Aviva Plc, Legal & General Group Plc and Columbia Threadneedle Investments are among firms that have frozen redemptions from funds overseeing about $13 billion of U.K. real estate this week. With the Association of Real Estate Funds citing “material valuation uncertainty,” and the Financial Conduct Authority saying “a fair and reasonable valuation of commercial real estate funds cannot be established” — both statements made on Wednesday — there’s a real prospect that the entire U.K. property fund sector may close for withdrawals in the coming days.The funds that have gated cover the gamut of property classes and geography, according to their most recent fact sheets. That suggests the market dislocation is widespread and not just restricted to, say, shopping malls. The Legal & General fund has 35% of its assets in industrial property, compared with less than 5% for the Aviva fund, for example. About 10% of the latter’s portfolio, meantime, is in London, compared with just 0.4% of the Threadneedle fund’s assets.New rules proposed by the FCA last year compelling fund managers to suspend redemptions if there’s “material uncertainty” about the value of 20% or more of a funds’ real estate holdings were due to come into force later this year. Asset managers clearly aren’t hanging around in the current climate for their cash holdings to be depleted by investors demanding repayment. Time and again, the hard to sell nature of office buildings and shops and warehouses, compared with the almost frictionless markets for stocks and bonds, keeps catching the fund management industry out. Investors in a 2.5 billion-pound ($3 billion) fund run by M&G Plc have been locked in since December, when the firm said it faced “unusually high and sustained outflows,” which it was struggling to meet.As I argued then, while it’s clearly desirable for retail investors to have different ways of investing in bricks and mortar, the illiquidity of real estate is incompatible with the pretense that such vehicles can be redeemed on a daily basis. Regulators need to provide official cover for asset managers to drop their pledge to let customers take their money out on a continuous basis; three- or six-month lockups make a lot more sense, provided the industry moves in lockstep. On the basis you should never let a good crisis go to waste, it’s time for the regulators to resolve the timing mismatch between the funds and their underlying asset transactions — albeit too late for the U.K. investors who currently have savings trapped in shuttered funds for the foreseeable future.This column does not necessarily reflect the opinion of Bloomberg LP and its owners.Mark Gilbert is a Bloomberg Opinion columnist covering asset management. He previously was the London bureau chief for Bloomberg News. He is also the author of "Complicit: How Greed and Collusion Made the Credit Crisis Unstoppable."For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- In this once-in-a-generation market meltdown, brave souls in the business world are living up to their reputations as value investors.Corporate insiders worldwide are buying the most shares for every one they sell since 1999, according to data from 2iQ Research. Managers and directors have snapped up 4.5 times more equity in their own firms than they’ve sold this month, as of Monday.All in, they’ve purchased 86.6 million euros ($95 million) worth of stock so far in March, the most since 2015. It’s sign that executives now see their companies as alluringly cheap after the 30% plunge in the MSCI World Index from its record.The bargain-hunting drive reached a record in Italy and Spain, two economies in lockdown as the coronavirus spreads. In the U.S., purchases are at 2016 highs.Since executives supposedly have superior knowledge about their own businesses, such purchases add to the case that shares have fallen beyond their fair value, the thinking goes.“Insiders are buying massively and in the past they have had quite good timing to pick the market bottom,” said Patrick Hable, a Frankfurt-based managing partner at the data provider. “It would be extremely worrying if they are selling now, especially since it’s in their nature to buy when their stock is down.”In Europe, insiders have bought 20.6 million euros ($22.7 million) worth of stock so far in March, already the highest since late 2018. Insider buying has been especially pronounced in energy and financials, two of the hardest hit industries amid the market volatility unleashed by the widening viral outbreak. Sales have exceeded purchases in utilities, Hable added.The data dovetails with finding from other sources. In the U.S., insiders’ buy-to-sell ratio had jumped to the highest since 2011 as of Friday, according to the Washington Service, an analytics firm. American corporate insiders bought 1.87 times more shares than they sold last week, compared with a one-year average of 0.15, data compiled by Bloomberg show.The chief executive officer of Standard Life Aberdeen bought nearly 100,000 pounds ($121,000) worth of the U.K. investment giant’s shares on Tuesday, according to a filing. The CEO as well as the chief investment officer of insurer M&G Plc also each spent more than 160,000 pounds on the firm’s stock on Monday.Information on insider trades is public in most markets, though it can be time-consuming to compile and standardize.Studies have shown that piggybacking on such buying and selling behavior can pay off handsomely, with some arguing that it helps to remedy market mispricings. Recent research has posited that insiders are more likely to buy when their stock trades at a 52-week low and vice versa.(Adds examples of insider buying in third-to-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Andrew Bailey knows a few things about crises, which should put him good stead on Monday when he takes the helm of the Bank of England as it tries to stave off recession triggered by the coronavirus pandemic.The 60-year-old is already in the heart of the action. Just hours before he officially started, he was part of a coordinated move by central banks including the U.S. Federal Reserve to inject liquidity into the global financial system.That’s reminiscent of Bailey’s role helping shape the BOE’s response to the financial meltdown of 2008, when he was instrumental in saving Northern Rock after it was hit by a bank run.His subsequent time at the Financial Conduct Authority saw him grapple with a number of scandals -- not always laudably, say his critics -- and stories of him supporting his wife over the telephone after a bear wandered into their Idaho home have passed into City legend.“You want your central bank governors to have lived through crises and come out the other side neither shaken nor stirred,” said Richard Barwell, an economist at BNP Paribas Asset Management. “The fundamental problem is that there is precious little monetary ammunition left. A seasoned central banker who has been battle tested is not a bad place to start.”Bailey was also involved last week as the BOE worked alongside the U.K. Treasury in shaping their response to the virus. He appeared with outgoing Governor Mark Carney at a press conference to explain the BOE’s emergency policy stimulus.While Carney talked the assembled media through the decision, it was Bailey who set the tone for the future, saying that policy will be under “constant review and consideration.” He also insisted that there is more space available for easing.Even after Sunday’s action, there could be more to come. HSBC forecasts the new governor will hit the ground running at his first policy meeting on March 26, cutting the key rate to 0.1% -- officials have said they don’t want European Central Bank-style subzero policy -- and adding 60 billion pounds ($74 billion) of asset purchases.That would leave precious little in the larder. On Wednesday, Bailey said the latest emergency measures had used up almost half of the remaining policy space, equivalent to 250 basis points of easing taking into account asset purchases and rate guidance.He has also considered the question of how much central banks can really do in the face of the virus. At his appointment hearing in Parliament this month, he heavily pushed the idea of working hand-in-hand with the government, saying “we can’t let our notions of independence get in the way of us.”Last week’s twin response, when the Chancellor of the Exchequer delivered a budget hours after the BOE’s action, showed he’s in tune with the politics of the moment.“We still think that monetary policy can do little to offset the near-term economic hit,” said HSBC chief European economist Simon Wells. “It won’t enable quarantined people to get back to restaurants and cinemas if doctors’ orders are to stay at home. We see the BOE’s assertive stance as about instilling confidence.”Bailey is viewed as a safe pair of hands and, perhaps decisively for his appointment, steered clear of Brexit controversy by keeping his views quiet enough to be acceptable to most future governments.His track record as head of the FCA hasn’t been stellar though. He went through a slew of scandals, from the now defunct London Capital & Finance to the collapse of the investment empire run by Neil Woodford. These were accompanied by the gating of M&G Plc’s property fund and ongoing questions about the FCA’s handling of Royal Bank of Scotland Group Plc’s small-business lending unit.Campaigner Gina Miller -- best known for bringing the lawsuit that forced the U.K. government to get parliamentary approval for Brexit plans -- has demanded an independent review of his BOE appointment, citing a “catalog of regulatory failures” during his time.While British lawmakers confirmed his governorship, they also said they had “serious concerns” about his tenure as at the regulator.In his new role, combating the virus is only the first task in an almighty set of economic and financial challenges facing Britain. Even before the pandemic, the economy was in poor shape, and data last week showed stagnation at the start of the year.Years of Brexit uncertainty have hampered investment and eaten into productivity, and it’s unclear how the nation’s financial sector, which accounts for about 7% of GDP, will fare in trade negotiations between the government and the European Union.Bailey has long been preparing for the top job at Threadneedle St., with his career including BOE roles as deputy governor, chief cashier and CEO of the Prudential Regulatory Authority. Early on, he was private secretary to Eddie George, the governor from 1993-2003. His record was enough to see him appointed head of the FCA by then-Chancellor of the Exchequer George Osborne -- though Bailey reportedly had one condition.“He didn’t really want the job,” according to an editorial in the Evening Standard, a London-based newspaper now edited by Osborne. “He only asked for one thing in return: that he be considered a candidate for the next governor of the Bank of England. The then-Chancellor promised that he would be.”To contact the reporters on this story: David Goodman in London at email@example.com;Lucy Meakin in London at firstname.lastname@example.orgTo contact the editor responsible for this story: Paul Gordon at email@example.comFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Investors could be well rewarded buying these two FTSE 100 dividend stocks yielding 7%+. The post 2 FTSE 100 dividend stocks I’d buy for my ISA today appeared first on The Motley Fool UK.
(Bloomberg Opinion) -- Dan Loeb’s Third Point LLC says it has a history of working constructively with boards to promote the success of their companies. The activist’s latest goal seems to involve removing the board of Prudential Plc entirely, and dismantling the head office around it, as part of a breakup of the $48 billion insurer.That may not be as hard as it sounds.Once focused on Britain, Prudential has transformed into a large Asian insurer with a smaller U.S. business attached. Its shares suffer under a stark valuation discount to Hong Kong-listed peer AIA Group Ltd., and Loeb has set out a plausible explanation for why. The reason, he says, is that the Asian side needs capital to grow, but competes with shareholders for dividends. Likewise, the U.S. business would be better off conserving cash in support of its own capital strength. Meanwhile, most investors don’t want to invest in an Asian-U.S. hybrid insurer.The remedy sounds simple: Split Prudential into separate U.S. and Asian businesses with their own stock listings and dividend policies. The Asian shares would probably command a much higher valuation than whole the group does now, providing an acquisition currency that would be a cheap source of growth capital. At the same time, scrapping the conglomerate structure would eliminate the need for a costly corporate center based in London.None of this is likely to be a huge surprise to Prudential’s directors. The board has already been simplifying the company, mainly by spinning off the M&G Plc asset management business. That move has failed to address the valuation gap, so the next logical step would be to jettison the U.S. subsidiary and become a pure Asia play. Prudential’s chairman, Paul Manduca, is retiring next year anyway, and Chief Executive Officer Mike Wells has been in the role for five years. Manduca’s successor, banker and former government minister Shriti Vadera, has a chance to be radical.The real opponents to Loeb’s ideas are more likely to be found among Prudential’s long-term investors. Third Point is a new arrival taking on a longstanding problem. But Prudential has a large number of U.K. investors whose own narrow interests may be served by keeping it in its current form, paying high dividends via a London-listed share. Recall that consumer giant Unilever NV encountered huge resistance to an attempt to simplify its structure in 2018, while plumbing group Ferguson Plc is moving with extreme care about a possible re-domicile for the same reason.Loeb argues Prudential in two pieces would be worth twice what it is today. He may be right, but if a breakup involves a dividend cut along the way, it won’t be plain sailing.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
This Fool explains why he's thinking about buying some of the highest-yielding stocks in the FTSE 100 today. The post With their 7% dividend yields, I’d consider buying these FTSE 100 stocks appeared first on The Motley Fool UK.