For years, Hong Kong’s obituary has been repeatedly written by international commentators. Geopolitical tensions, pandemic isolation, concerns over capital flight and questions surrounding the city’s future contributed to a narrative of irreversible decline. In many Western analyses, the assumption that Hong Kong’s best days as an international financial centre were behind it became almost automat...
For years, Hong Kong’s obituary has been repeatedly written by international commentators. Geopolitical tensions, pandemic isolation, concerns over capital flight and questions surrounding the city’s future contributed to a narrative of irreversible decline. In many Western analyses, the assumption that Hong Kong’s best days as an international financial centre were behind it became almost automatic. Yet the latest global wealth management data tells a very different story. According to...
Brazil’s Raizen SA is preparing to present creditors with a final restructuring proposal as soon as Wednesday, a key step in the struggling sugar and ethanol producer’s months-long push to clinch an out-of-court debt overhaul. Holders of local notes, including so-called Agribusiness Receivables Certificates, are scheduled to meet the same day to begin evaluating the plan, according to people famil...
Brazil’s Raizen SA is preparing to present creditors with a final restructuring proposal as soon as Wednesday, a key step in the struggling sugar and ethanol producer’s months-long push to clinch an out-of-court debt overhaul. Holders of local notes, including so-called Agribusiness Receivables Certificates, are scheduled to meet the same day to begin evaluating the plan, according to people familiar with the matter, who asked not to be identified discussing private negotiations. Separate talks between banks and offshore bondholders are expected over the next several days, the people said. The company, which is up against a June 8 deadline to ink a deal, expects more than 70% of creditors to back the plan, well above the simple majority needed to ratify the deal, the people added. A representative for Raizen declined to comment. Read More: Raizen Bonds Jump on Disclosure of Terms for Restructuring Deal An agreement would allow Raizen to move forward with an out-of-court restructuring in an effort to tackle its 65 billion real ($13 billion) debt load. The biofuels giant borrowed heavily in recent years to fund an ambitious expansion, only for failed bets in ethanol and aviation fuels along with rising interest rates to strain its balance sheet. The debt discussions will also involve the company’s future governance structure. Raizen is proposing the creation of a five-member creditors’ committee, with Chief Financial Officer Lorival Luz expected to take on more responsibilities as chief restructuring officer. The plan also recommends keeping Raizen’s current board in place through the first quarter of next year, while leaving open whether Chairman Rubens Ometto would remain on the board beyond then if he provides a 500 million-real capital injection. A spokesperson for Ometto declined to comment.
The US Supreme Court reinstated a Republican-friendly congressional map in Alabama, letting the state eliminate a majority-Black House district for the November midterms. Over three dissents, the justices blocked a lower court decision that would have required the state to keep using a map with two majority-Black districts that Democrats won in 2024. Alabama’s Republican leaders can now deploy a m...
The US Supreme Court reinstated a Republican-friendly congressional map in Alabama, letting the state eliminate a majority-Black House district for the November midterms. Over three dissents, the justices blocked a lower court decision that would have required the state to keep using a map with two majority-Black districts that Democrats won in 2024. Alabama’s Republican leaders can now deploy a map likely to shift one of those seats into the GOP column. The court’s three liberals dissented. The Supreme Court ruling caps a run of redistricting decisions that collectively have buoyed Republican chances as they vie to retain their narrow congressional majority. The conservative-controlled court has backed Republicans in Texas , New York , Virginia and Louisiana , while siding with Democrats on California’s map . The latest order expands the impact of the Supreme Court’s blockbuster April 29 decision rolling back use of the Voting Rights Act, the landmark 1965 law enacted to protect minority voters from discrimination. The 6-3 ruling sparked a push in Republican-controlled southern states to carve up majority-Black districts that have traditionally voted Democratic. The Alabama clash was unique because a three-judge panel said the state intentionally discriminated against Black voters when it crafted a proposed map in 2023. The panel, which included two Donald Trump appointees, reaffirmed that conclusion last week after the Supreme Court ordered a fresh look at the case in light of the Voting Rights Act ruling. The three judges said the Supreme Court opinion didn’t eliminate the need for a second majority-Black district because Alabama had engaged in racial discrimination in a manner that wasn’t at issue in the Voting Rights Act case. The panel said in the May 26 ruling that Alabama violated the Constitution by intentionally leaving Black voters short of a majority in a pivotal district. “We cannot see our way clear to requiring Alabamians to cast their votes in the 20...
Tea Nagode/iStock via Getty Images Overview The VanEck BDC Income ETF ( BIZD ) makes it very easy for investors to get instant diversification across the BDC sector. Business development companies have continued to face headwinds related to higher interest rates and uncertainty about how AI will impact specific industries. When I previously covered BIZD several quarters ago, I downgraded my rating...
Tea Nagode/iStock via Getty Images Overview The VanEck BDC Income ETF ( BIZD ) makes it very easy for investors to get instant diversification across the BDC sector. Business development companies have continued to face headwinds related to higher interest rates and uncertainty about how AI will impact specific industries. When I previously covered BIZD several quarters ago, I downgraded my rating to a hold for many of these same reasons. Since then, the share price has fallen by double digits and continues to erode capital for investors. After an assessment of the macroeconomic environment, I believe that there is more pain ahead for BDC investors. Looking at the performance over the last twelve months, we can see that BIZD's share price has declined by about 21.7%. Even when including all distributions that were paid out, the total return sits at a loss of 11.6% over the same time frame. BIZD now offers investors a starting dividend yield of 13.6% while issuing those payouts on a quarterly basis. Unfortunately, I believe that there is a chance for the payouts to be reduced at some point before the end of 2026. BIZD is currently paying out more than it actually earns and is relying on return of capital distributions. Data by YCharts Although BIZD provides diversification across the BDC market, the passively managed approach has its flaws. BIZD is very slow to rotate out of underperformers, and this can be a big deal for investors. Furthermore, I believe that we are heading towards an environment of higher interest rates, which will make it even more difficult for BDCs to expand their baseline net investment income and grow their portfolios. Loan write-downs and non-accruals may become more of an issue if interest rates rise, and investors must prepare for the risk of continued downside. Fund Strategy According to the latest fund overview , BIZD now has total net assets of $1.57B that are spread across the BDC market. The whole appeal of BIZD is that this diversifie...