PeopleImages Morgan Stanley’s Katy Huberty sees risks in private credit as “significant but not systemic,” expecting the asset class to go through a default cycle even as broader financial stability concerns remain limited. Much of the growth in private credit was fueled by “lower-rated borrowers transitioning away from broadly syndicated loans to direct lending,” according to the strategist. She ...
PeopleImages Morgan Stanley’s Katy Huberty sees risks in private credit as “significant but not systemic,” expecting the asset class to go through a default cycle even as broader financial stability concerns remain limited. Much of the growth in private credit was fueled by “lower-rated borrowers transitioning away from broadly syndicated loans to direct lending,” according to the strategist. She expects defaults to be “sector-concentrated, led by software ( IGV ), ( IGPT ), ( XSW ),” though she noted that defaults may not materialize immediately since the sector faces no urgent liquidity crunch and maintains healthy fundamentals. Huberty said that “systemic risk remains contained” due to several protective factors, including low aggregate leverage and “limited bank exposure” of approximately 3% of loans. She also pointed to strong structural protections and a substitution toward bank lending as additional buffers against contagion risk. Broadly syndicated loans and direct lending takeouts (Morningstar, Morgan Stanley Research) More on private credit Blue Owl stock closes at record low as private credit investors head for exits Blue Owl Capital curbs redemption at two more private credit funds Barings private credit fund limits redemptions after rise in repurchase requests Lawmakers probe Blackstone, Ares and peers over private credit practices: report
Maryviolet/iStock via Getty Images Overview When I previously covered the BlackRock Multi-Sector Income Trust ( BIT ), I stated that the fund may be an efficient way for investors to offset the volatility of the equity markets. Ironically, the equity markets did pull down from their highs shortly after. Unfortunately, BIT also experienced a sizeable pullback as the debt market continues to face he...
Maryviolet/iStock via Getty Images Overview When I previously covered the BlackRock Multi-Sector Income Trust ( BIT ), I stated that the fund may be an efficient way for investors to offset the volatility of the equity markets. Ironically, the equity markets did pull down from their highs shortly after. Unfortunately, BIT also experienced a sizeable pullback as the debt market continues to face headwinds. Since my last hold rating , BIT has now declined by about 5.8% and underperforms against the S&P 500. However, the fund has released an updated annual report for 2025, so I wanted to reassess the fund's overall value proposition and outlook for the year. When I previously covered BIT, the fund traded at a discount to NAV of 4.91%. Following the pullback in share price, BIT now trades at a discount to NAV of 7.05%. Referring to the red line on the chart below, we can see that BIT is now approaching the deepest discount to NAV levels experienced since the bottom of the market in 2022. For reference, BIT has traded at an average premium to NAV of 0.27% over the last five-year period. However, this deeper discount is a direct reflection of the challenges that the fund is facing at this time. Therefore, I do not think investors should interpret this as an attractive time to accumulate shares. CEF Data Furthermore, BIT now offers investors a starting dividend yield of about 11.8%. The distributions are paid out on a monthly basis, which makes BIT an enticing choice for investors that want to prioritize income generation within their portfolio. However, I worry about the overall sustainability of the dividends going forward in a scenario where interest rates remain at their current levels. The fund is currently paying out more than it earns in income, which is eroding the underlying NAV. So let's start by reviewing the latest portfolio strategy that BIT implements to generate its earnings. Fund Strategy According to the latest portfolio overview , BIT has total assets und...
Phillip Wittke/iStock via Getty Images Introduction REITs ( XLRE ) in general have performed well in recently with XLRE up close to 10% in the past year at the time of writing. With interest rates lower since the FED started cutting in late 2024, many have seen their share prices recover. Regarding SBA Communications Corp ( SBAC ), the REIT has slightly underperformed in the past year, down 1.57% ...
Phillip Wittke/iStock via Getty Images Introduction REITs ( XLRE ) in general have performed well in recently with XLRE up close to 10% in the past year at the time of writing. With interest rates lower since the FED started cutting in late 2024, many have seen their share prices recover. Regarding SBA Communications Corp ( SBAC ), the REIT has slightly underperformed in the past year, down 1.57% at the time of writing. In a downward trend since April of last year, shares jumped last month on potential takeover interest from private firms. While there's little information to go on, I believe the deal has some merit. This would be a large for SBAC as they have an enterprise value of $32 billion. In this article, I discuss SBAC's latest earnings, outlook, and why I'm downgrading them from a buy to a hold. Previous Thesis I last covered SBA Communications back in March of 2025 in an article titled: Headwinds Persist, But Growth Potential Remains . SBAC faced headwinds in Brazil, impacted by a strong dollar and elevated churn. But their fundamentals, strong dividend coverage, and upside potential to their $294.73 end of 2026 price target made them a compelling investment. But I did warn that rising macro environmental headwinds from tariffs, persistent international headwinds, and recession risks would likely continue to weigh on their share price. Since, the share price is down a modest 4.36% compared to the S&P ( SP500 ), up close to 17% over the past 13 months. Seeking Alpha Why A Potential Takeover The chart below shows SBAC's performance in the past year in comparison to the S&P and peers American Tower Corp ( AMT ) and Crown Castle ( CCI ). You can see that all three cell tower REITs have underperformed in the past year. AMT has led the way, down over 18% at the time of writing. All three collect most of their revenue from telecom companies like T-Mobile ( TMUS ), Verizon ( VZ ), and AT&T ( T ). Seeking Alpha In the past 5 years SBAC has also been a disappointing ...
SoundHound AI (NASDAQ: SOUN) just lost its CFO, but the bigger story is the balance between rapid growth, heavy cash burn, and a market that still sees major upside. I break down whether this is a scaling business or a warning sign investors shouldn't ignore. Stock prices used were the market prices of March 30, 2026. The video was published on April 2, 2026. Continue reading
SoundHound AI (NASDAQ: SOUN) just lost its CFO, but the bigger story is the balance between rapid growth, heavy cash burn, and a market that still sees major upside. I break down whether this is a scaling business or a warning sign investors shouldn't ignore. Stock prices used were the market prices of March 30, 2026. The video was published on April 2, 2026. Continue reading
The stock market looks shaky these days. The S&P 500 (SNPINDEX: ^GSPC) is down more than 3% since the start of the year, and many top tech stocks that were hot buys in recent years have been struggling in the first few months of 2026. Investors appear to be growing concerned with the market, and the war in Iran may be providing them with even more of a reason to stay on the sidelines. While there ...
The stock market looks shaky these days. The S&P 500 (SNPINDEX: ^GSPC) is down more than 3% since the start of the year, and many top tech stocks that were hot buys in recent years have been struggling in the first few months of 2026. Investors appear to be growing concerned with the market, and the war in Iran may be providing them with even more of a reason to stay on the sidelines. While there is plenty of uncertainty in the markets, billionaire investor Warren Buffett has experienced it all and remained invested throughout. One fact that may surprise you is when Buffett bought his first stock. Image source: The Motley Fool. Continue reading
Planning for retirement can be stressful because it can be challenging to determine how much you'll really need. Not only do you need to consider how much money you'll need to sustain your lifestyle each year, but you'll also need to ensure it lasts long enough, while also having a buffer in the event of emergencies. There are, unfortunately, many ways your retirement savings can be drained. The g...
Planning for retirement can be stressful because it can be challenging to determine how much you'll really need. Not only do you need to consider how much money you'll need to sustain your lifestyle each year, but you'll also need to ensure it lasts long enough, while also having a buffer in the event of emergencies. There are, unfortunately, many ways your retirement savings can be drained. The good news is that there are ways to improve your financial situation in retirement. By investing in dividend stocks, you can generate recurring income on an ongoing basis. Here's why investing in a top fund, such as the Schwab U.S. Dividend Equity ETF (NYSEMKT: SCHD), can be a great option to consider. Image source: Getty Images. Continue reading
Artificial intelligence (AI) stocks have been ground zero for sell-offs recently. Several stocks are well off their all-time highs, and almost every one of them has seldom been this cheap over the past few years. I think now is an incredible buying opportunity for AI stocks, and investors should be scrambling to scoop up shares before they recover. All it will take are some positive earnings repor...
Artificial intelligence (AI) stocks have been ground zero for sell-offs recently. Several stocks are well off their all-time highs, and almost every one of them has seldom been this cheap over the past few years. I think now is an incredible buying opportunity for AI stocks, and investors should be scrambling to scoop up shares before they recover. All it will take are some positive earnings reports at the end of the month, or a resolution of the Iranian conflict, to send the market higher, and those catalysts could occur sooner than expected. Investors should wait, because now is a great time to buy many of these stocks. Image source: Getty Images. Continue reading
IMF Panics, Warns Tokenization Could Bring Crypto Risks Into Global Financial Markets Authored by Francisco Rodrigues via CoinDesk.com, Tokenization could reshape finance by enabling instant settlement and cutting out intermediaries, and introduces new risks that regulators are not yet equipped to manage, the IMF said. Tokenization could amplify volatility through automated markets and smart contr...
IMF Panics, Warns Tokenization Could Bring Crypto Risks Into Global Financial Markets Authored by Francisco Rodrigues via CoinDesk.com, Tokenization could reshape finance by enabling instant settlement and cutting out intermediaries, and introduces new risks that regulators are not yet equipped to manage, the IMF said. Tokenization could amplify volatility through automated markets and smart contracts, the report said. The IMF called for clearer legal frameworks and stronger global coordination, warning that tokenized assets moving instantly across jurisdictions could complicate oversight and deepen financial fragmentation in the absence of proper regulation. Tokenization, the representation of real-life assets on a blockchain, could reshape both crypto markets and traditional finance, while introducing new risks that regulators are not yet equipped to manage, according to the International Monetary Fund (IMF). In a new report , the IMF described tokenization as more than a technical upgrade to markets. By moving assets like money, bonds and funds onto shared blockchains, transactions can settle instantly, cutting out intermediaries and reducing delays that define today’s markets. The IMF says the “atomic settlement” that tokenization brings to the financial world could lower counterparty risk and force firms to manage liquidity in real time. “Stress events are likely to unfold faster, leaving less time for discretionary intervention,” the report reads. “Therefore, ensuring stability requires that tokenized asset management remains anchored in safe settlement assets, legally recognized finality, and robust governance arrangements.” The report points to stablecoins — tokens whose value is pegged to a fiat currency — as a key bridge between crypto and traditional finance. These could become widely used settlement assets across tokenized platforms, the report said. Still, their reliability depends on reserves and redemption systems, leaving them exposed to runs under s...
grinvalds/iStock via Getty Images Wix.com ( WIX ) was downgraded to Market Perform from Market Outperform by Citizens after the Israel-based web development platform completed a Dutch auction that retired 29.7% of its shares at a cost of $1.61B. "While this financial engineering materially increases FCF per share, the company now has nearly $1B of net debt, while we expect Base44's hypergrowth wil...
grinvalds/iStock via Getty Images Wix.com ( WIX ) was downgraded to Market Perform from Market Outperform by Citizens after the Israel-based web development platform completed a Dutch auction that retired 29.7% of its shares at a cost of $1.61B. "While this financial engineering materially increases FCF per share, the company now has nearly $1B of net debt, while we expect Base44's hypergrowth will require funding and will be a headwind to FCF over the next several years," said Citizens analysts, led by Andrew Boone, in a Tuesday investor note. Shares of Wix.com were down 1.5% by noon trading. Its share price has plunged 40% over the past six months. Last year, Wix.com acquired Base44, an AI-powered platform that enables users to create custom software solutions and applications using natural language without the need for traditional coding, for $80M plus additional earn-out payments paid through 2029 predicated upon certain performance metrics. "More importantly, we expect AI to fundamentally reshape website building, introducing more competition and creating risk around the durability of Wix's subscriber base," Boone added. "Specifically, switching costs are likely to materially fall with AI coding agents, and while we believe Wix's self-creator product is improving with zero-shot website builds, AI resets Wix's historical product advantage that had compounded over the last ~20 years." What's more, the Dutch auction likely limits any share buybacks going forward as Wix.com continues to face more competition than ever. Last week, UBS downgraded Wix.com to Neutral from Buy due to its core business decelerating. The week prior, J.P. Morgan downgraded the stock to Underweight from Neutral due to concerns over its core business. More on Wix.com Wix: The Unprofitable Deep Value Company Wix.com: No AI Apocalypse In Sight, Only Tailwinds (Upgrade) Wix.com: Maybe Not A Clear Buy, But Worth Selling A Put Option Wix.com slumps after Dutch tender auction, UBS downgraded Wix.c...
The AI startup said the significant expansion of its compute infrastructure would power its frontier Claude models “and help us serve extraordinary demand from customers worldwide.”
The AI startup said the significant expansion of its compute infrastructure would power its frontier Claude models “and help us serve extraordinary demand from customers worldwide.”
ALLVISIONN/iStock via Getty Images Investment Thesis After my enormous returns on investment from Applied Optoelectronics ( AAOI ) in the last quarter, I decided to focus on more undercovered stocks in the photonics supply chain such as POET Technologies ( POET ). In my view, this is where the next level of asymmetry upside is starting to develop. It goes without saying that the vast majority of r...
ALLVISIONN/iStock via Getty Images Investment Thesis After my enormous returns on investment from Applied Optoelectronics ( AAOI ) in the last quarter, I decided to focus on more undercovered stocks in the photonics supply chain such as POET Technologies ( POET ). In my view, this is where the next level of asymmetry upside is starting to develop. It goes without saying that the vast majority of retail investors and many sophisticated institutional investors focus on the winners of the AI infra race. Transceivers, lasers, switches and so forth, these all do work and they undoubtedly provide a lot of potential. However, when looking further ahead, I believe that the next level of opportunities comes from those technologies that will streamline processes and reduce complexities involved rather than scale them further. Therefore, while being a part of the same ecosystem as everyone else, POET seeks to revolutionize it instead of competing. Production and Manufacturing Timeline Update While the most obvious problem that POET faced in the latest update was a miss on earnings guidance (which really did not matter at this point, as the company is still working on validation milestones), what I found more telling was the timeline of production and manufacturing that seems much more plausible than ever before. High-volume light source production set for Q2 2026, coupled with 800G optical engines in Q3 2026 and a shipment target of over 30,000 units in total during the year, does make me excited about where the technology can take us next. Moreover, this particular timeline of events is extremely relevant for current bottlenecks faced in AI infrastructure. As we shift from optimization of computing power and speed to optimization of data flow, low-latency optical interconnect becomes critical and this is precisely where POET stands out. From a financial perspective, the numbers remain as bad as ever. The company barely manages to generate revenues above $300,000, while the ne...
Treasuries fell amid mounting oil prices in the run-up to US President Donald Trump ’s late-Tuesday deadline for Iran to agree to terms for ending American attacks. The declines lifted yields by as much as five basis points, with long-maturity tenors rising most. Ten- and 30-year yields reached session highs against an array of conflicting signals about whether Trump’s threats of mass destruction ...
Treasuries fell amid mounting oil prices in the run-up to US President Donald Trump ’s late-Tuesday deadline for Iran to agree to terms for ending American attacks. The declines lifted yields by as much as five basis points, with long-maturity tenors rising most. Ten- and 30-year yields reached session highs against an array of conflicting signals about whether Trump’s threats of mass destruction are likely to come to pass. Shorter-maturity yields rose two to three basis points ahead of the first of this month’s Treasury note and bond auctions — a $58 billion three-year new issue at 1 p.m. New York time. Last month’s three-year note auction was the first since the US attacked Iran on Feb. 28, and demand for it was notably weak. Poor results for most of last month’s auctions amid volatile market conditions have raised the stakes for the next batch. The rise in yields, while led by oil prices, was constrained by uncertainty regarding the course of the war. “Markets seem to be having trouble to determine the next actions in the Middle East,” said Molly Brooks , rates strategist at TD Securities. Early gains driven by the prospect of an agreement evaporated on reports Iran has stopped negotiating. Oil prices — a principal driver of Treasury yields since the US assault on Iran began — rose, US benchmark West Texas Intermediate crude futures by as much as 4.6% from Monday’s multiyear high close. Yields reached year-to-date highs in late March as energy prices mounted, however they retreated from those levels amid mounting fears the oil shock will hit economic growth. European bond markets — where trading resumed for the first time since Thursday — underperformed US peers sharply as traders ramped up wagers on interest-rate hikes this year from the European Central Bank and the Bank of England. Yields on two-year notes across the region rose at least 10 basis points. European debt has been particularly exposed to the war in the Middle East given the region’s reliance on en...
Investors in Intuitive Surgical Inc (Symbol: ISRG) saw new options begin trading today, for the August 21st expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 136 days until expiration the newly trading
Investors in Intuitive Surgical Inc (Symbol: ISRG) saw new options begin trading today, for the August 21st expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 136 days until expiration the newly trading
Paramount Skydance ( PSKY ) confirmed that it has received commitments from Middle East investors that would help the company finance its $110B acquisition of Warner Bros. Discovery ( WBD ). According to a filing with the U.S. Securities and Exchange Commission, Paramount Skydance ( PSKY ) will receive funding from Middle East sovereign wealth funds, including Saudi Arabia, Abu Dhabi, and Qatar. T...
Paramount Skydance ( PSKY ) confirmed that it has received commitments from Middle East investors that would help the company finance its $110B acquisition of Warner Bros. Discovery ( WBD ). According to a filing with the U.S. Securities and Exchange Commission, Paramount Skydance ( PSKY ) will receive funding from Middle East sovereign wealth funds, including Saudi Arabia, Abu Dhabi, and Qatar. To sidestep the jurisdiction of the Committee on Foreign Investment in the United States (CIFUS), these investors have agreed to “forego any governance rights—including board representation—associated with their non-voting equity investments.” As the Middle Eastern investors will own less than 25% of the combined company, Paramount ( PSKY ) does not expect the deal will trigger scrutiny by the U.S. Federal Communications Commission. With additional funding, the amount of equity committed by Paramount Skydance ( PSKY ) CEO David Ellison’s father, Larry Ellison, and RedBird Capital Partners has been reduced. After the closing of the deal, however, the Ellison family and RedBird together will continue to hold the largest stake in PSKY and will continue to be the sole owners of PSKY Class A common stock. The remaining funding for the deal will be provided by Bank of America ( BAC ), Citigroup ( C ), and Apollo Global Management ( APO ). The company also said it would increase the number of Class B common shares to 7B from 5.5B and pay a dividend to Class B shareholders without paying a corresponding dividend to Class A shareholders. To further enhance shareholders’ value in the company, Paramount Skydance ( PSKY ) will issue one warrant per share equal to the 20-trading-day average price of PSKY determined as of the third business day prior to the closing of the merger, subject to a minimum/maximum price of $12 and $16.02 per share. The warrants are good for 10 years but can be called if the closing price of PSKY Class B stock equals or exceeds $30 for at least 20 trading days d...