High-yield bonds bounce back as optimism rises

High-yield bonds bounce back as optimism rises | US banks resume Russian bond trades on Treasury advice | BofA: S&P 500 could drop 7% because of Fed tightening Created for {EMAIL} | [Web Version]( August 17, 2022 [SIGN UP]( ⋅ [SHARE]( [] Risk Management and Insurance [] [High-yield bonds bounce back as optimism rises]( Spreads on high-yield bonds have shrunk significantly, with the volume of distressed sales falling to 6.2% from 11.6% in early July, according to Lehmann Livian Fridson Advisors. The improvement is attributed to increasing optimism that inflation will be brought under control and that a recession will be avoided, with Chris Alwine, Vanguard's head of global credit, seeing high-yield bonds as a near-term opportunity. However, analysts including Michael Hartnett, chief investment strategist at Bank of America Global Research, remain cautious on long-term prospects. Full Story: [Financial Times (subscription required)]( (8/15), [MarketWatch (tiered subscription model)]( (8/16) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [US banks resume Russian bond trades on Treasury advice]( Banks including Bank of America and JPMorgan Chase have resumed trading Russian now that the Treasury Department has made it clear that trading the debt to help a client liquidate a position does not violate any of the sanctions on Russia, sources said. Lawyers say US sanctions never barred investors from selling their Russian debt but the matter was so controversial that many brokers simply refused to accept their orders. Full Story: [Reuters]( (8/16), [Bloomberg]( (8/15) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [BofA: S&P 500 could drop 7% because of Fed tightening]( Bloomberg (8/15) [] - [Report: 1 in 5 US adults unbanked or underbanked]( Morning Consult (8/16) [] Cybersecurity [] [Study: Businesses lack adequate cyberinsurance coverage]( Although average ransomware payments now run into the millions of dollars, only a fifth of organizations have more than $600,000 of cyberinsurance coverage, and alongside that, insurers are reducing coverage and requiring certain security measures, a BlackBerry study finds. "Better software adoption is a critical element in better positioning organizations to stand up to attackers," Corvus Chief Technology Officer Vincent Weafer notes. Full Story: [Infosecurity (U.K.)]( (8/15) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [Workers interested in data security benefits]( Employee Benefit News (free registration) (8/15) [] Government Regulation [] [Fed announces guidelines for payment systems]( The Federal Reserve has [issued]( final guidelines on access to its payments systems that outline a tiered review of financial institutions, with those engaged in "novel activities and for which authorities are still developing appropriate supervisory and regulatory frameworks" subject to more scrutiny. The Fed has left the door open to granting cryptocurrency companies access if an extensive review of operations produces a favorable conclusion. Full Story: [The Wall Street Journal]( (8/15), [Axios]( (8/15), [CoinDesk (UK)]( (8/16) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] - [SEC reportedly probing ESG funds]( Reuters (8/15) [] Innovation [] [Survey shows consumer preference for bundled banking]( A survey of nearly 2,300 US consumers shows a growing preference for so-called bundled banking, in which they deal with one financial institution for all their requirements. Convenience and simplicity of money management were among the factors quoted often by respondents, with research from PYMNTS showing that customers with a credit card from their primary bank favor using that institution for all their financial needs. Full Story: [PYMNTS]( (8/15) [LinkedIn]( [Twitter]( [Facebook]( [Email]( [] [] To go backward is to do nothing; it is pure loss; it means that one has neither understood nor profited by the lessons of the past. 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