USO/iStock via Getty Images There are times when the market offers a clear anomaly. Not something hidden, but something that is clearly visible when comparing two instruments directly. This is exactly the case between the Invesco Financial Preferred ETF ( PGF ) and the iShares 20+ Year Treasury Bond ETF ( TLT ) at the moment. TLT—US government bonds with a maturity of over 20 years, zero credit ri...
USO/iStock via Getty Images There are times when the market offers a clear anomaly. Not something hidden, but something that is clearly visible when comparing two instruments directly. This is exactly the case between the Invesco Financial Preferred ETF ( PGF ) and the iShares 20+ Year Treasury Bond ETF ( TLT ) at the moment. TLT—US government bonds with a maturity of over 20 years, zero credit risk, an AA rating, and a 5.22% average yield to maturity. PGF—finance preferred shares with a BBB/Baa rating and an average yield to maturity of 6.81%. The difference is only ~1.6%. Historically, it should be at least 2.5%. PGF overview PGF's characteristics (Invesco) The fund's assets under management are close to $690 million. It holds 98 positions: 100% financial sector, almost entirely fixed-income preferred stocks. The effective duration is 9.63 years. Weighted average coupon 5.40%. Expense ratio: 0.55%. Average yield to maturity: 6.8%. The picture above also shows the fund's top 10 holdings. Only these 10 names are 63% of the fund. Most preferred series from JPM, BAC, and MS have the next call date already reached or very close—September and June 2026. That is, the issuers can buy them back at any time, but they do not do so because they would have to refinance at a higher yield. The fund's portfolio credit rating is 85.77% BBB, 12.96% BB, and 0.87% B. Holdings: Close to 90% are fixed-rate preferred stocks. We divided them into two groups: those that trade above par and those that trade below par. Fixed-Rate Preferred Stocks > PAR: In the next charts below, you see those stocks that have call dates and are still not callable with their yields to call and years to call, and those that are already callable with their current yields: Fixed-Rate Preferred Stocks > PAR (author's database) The weighted-average price of the still-not-callable is $25.80, and the average yield to call is close to 6.26%. The weighted average price of those that are callable is close to $25.56, a...
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), the world's most valuable chipmaker, delivered quarterly revenue of $82 billion and free cash flow of $48.6 billion, yet the real story lies in the structural overhaul taking shape beneath the headline numbers. The company restructured its reporting into...
Nvidia Corp (NASDAQ:NVDA, XETRA:NVD), the world's most valuable chipmaker, delivered quarterly revenue of $82 billion and free cash flow of $48.6 billion, yet the real story lies in the structural overhaul taking shape beneath the headline numbers. The company restructured its reporting into...
The New York Knicks scored 18 unanswered points on the way to a 109-93 win against the Cleveland Cavaliers as they took a 2-0 lead in their best-of-seven Eastern Conference final. The score was tied at 53-53 when the Knicks pulled away at their Madison Square Garden home to take a 71-53 lead on the way to a ninth straight victory. Josh Hart scored 26 points, including five three-pointers, for the ...
The New York Knicks scored 18 unanswered points on the way to a 109-93 win against the Cleveland Cavaliers as they took a 2-0 lead in their best-of-seven Eastern Conference final. The score was tied at 53-53 when the Knicks pulled away at their Madison Square Garden home to take a 71-53 lead on the way to a ninth straight victory. Josh Hart scored 26 points, including five three-pointers, for the home side as he racked up a career-high tally for a play-off game, while team-mate Jalen Brunson added 19 points and 14 assists. The Knicks, who last reached the NBA Finals match in 1999 and have not been champions since 1973, also had Mikal Bridges scoring 19 points and Karl-Anthony Towns 18. "We don't really care who gets the shine, the shots, the minutes, those kind of things - we're focused on winning," Hart said. "I think everyone is willing to sacrifice their own personal agendas or performance for the betterment of the team. And when you have a group of guys that do that, sky's the limit." Donovan Mitchell scored 26 points for the Cavaliers and James Harden contributed 18 for the visiting side, who went 2-0 down to the Detroit Pistons in the last round before emerging 4-3 series winners. "This isn't our first time facing adversity," Mitchell said. "We've been to two game sevens, so being down 2-0, it's not the biggest challenge. "It's right there. So let's go ahead and take advantage of it." Games three and four will take place in Cleveland on Saturday and Monday. The winners will play either the Oklahoma City Thunder or San Antonio Spurs, whose Western Conference final is tied at 1-1.
Rolling coverage of the latest economic and financial news The British Retail Consortium has reacted to official retail figures this morning, which showed a drop last month. Harvir Dhillon , economist at the industry body, said: We are starting to see signs that concerns over the Middle East conflict and its impact on living costs are leading shoppers to rein in their spending in many areas. …Disc...
Rolling coverage of the latest economic and financial news The British Retail Consortium has reacted to official retail figures this morning, which showed a drop last month. Harvir Dhillon , economist at the industry body, said: We are starting to see signs that concerns over the Middle East conflict and its impact on living costs are leading shoppers to rein in their spending in many areas. …Discretionary spend is likely to drop further as the cost of living squeeze worsens. To protect consumers and support economic growth in the months ahead, government should avoid further inflationary pressures through domestic policy costs. It can start by cutting non-commodity energy charges, which include the taxes and levies that account for two thirds of retailers’ energy bills, and addressing the triple packaging tax that affects all retailers and their supply chains.” There’s been a tentative improvement in the closely watched GfK index, though it remains deep in negative territory, rising to -23 in May from -25 in April. Many households, though, have been forced to dip into cash stashes to deal with rising prices, with the savings gauge plunging. Emergency pots will only last so long, and once more bills start to rise, there could be a fresh tightening of spending ahead. It now looks inevitable that government borrowing will soar past the £115.5bn that the OBR expected for this financial year back in March. Indeed, a weaker economy, rising unemployment rate, soaring gilt yields and some additional fiscal support for households and businesses will combine to push borrowing significantly higher this year. We have pencilled in an additional £20bn to £30bn of borrowing this year. What’s more, if gilt yields remain around current levels through to the next budget, the chancellor will probably lose around £10bn of headroom in 2029/30 against her fiscal rules. That doesn’t preclude a larger bailout now – as long as it is temporary. Instead, the real constraint on borrowing is f...
Palm oil buyers are picking up spot cargoes at bargain rates even as futures prices climb, as traders attempt to understand the impact of a radical export overhaul announced by top producer Indonesia earlier this week. President Prabowo Subianto announced the plan on Wednesday, citing palm oil, coal and ferronickel. Coordinating Minister for Economic Affairs Airlangga Hartarto later said that only...
Palm oil buyers are picking up spot cargoes at bargain rates even as futures prices climb, as traders attempt to understand the impact of a radical export overhaul announced by top producer Indonesia earlier this week. President Prabowo Subianto announced the plan on Wednesday, citing palm oil, coal and ferronickel. Coordinating Minister for Economic Affairs Airlangga Hartarto later said that only secondary processed products , including crude palm oil and refined, bleached and deodorized olein, would be routed through a new state commodity export body. Traders have since been seeking details on the full slate of affected goods, with the trade ministry expected to issue more information later today. Indonesia — which accounts for more than half the world’s palm oil exports — ships the tropical oil in a variety of forms, some of which are used directly by consumers for cooking, with others funneled into thousands of consumer products. Crude palm oil and RBD olein make up about half of all sales, with the rest from products like palm stearin and fatty acid distillates, according to data from cargo surveyor Intertek Testing Services. That makes the full details on the rules vital to determine the extent of the market impact. The crop, known for its extraordinary versatility, is estimated to be in about half of all supermarket items, and any export disruptions will quickly reverberate across global crop markets. “Everybody is still having confusion on the government export policy and is having a wait and see attitude,” said Budiman Suwardi, head of treasury and markets at Prime EcoHarvest Commodities. “We are all waiting for more clarification on the export rules. Everyone seems to be waiting and not willing to price and get caught by government policy.” Read More: Indonesia to ‘Listen to Market’ on New Commodity Export Body . Prices have been whipsawed as traders wrestle with the details. Benchmark palm oil futures in Malaysia, which initially sank following the announ...
MCCAIG/E+ via Getty Images Consumer delinquencies remain at comfortable levels. Consumer spending comprises 68%-70% of US GDP. When the consumer is in trouble is when we are likely to enter recession on any given shock. Consumer delinquency rates remain well below the thresholds indicating financial fragility in the past. Both credit card and consumer loan delinquencies have been trending lower. T...
MCCAIG/E+ via Getty Images Consumer delinquencies remain at comfortable levels. Consumer spending comprises 68%-70% of US GDP. When the consumer is in trouble is when we are likely to enter recession on any given shock. Consumer delinquency rates remain well below the thresholds indicating financial fragility in the past. Both credit card and consumer loan delinquencies have been trending lower. The recent small rise in loan delinquencies is likely due to student loans now requiring payments after a post-COVID period of deferral. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Aldi Irvan Darmansyah/iStock via Getty Images Market review and outlook The Bloomberg 1-3 Year Government/Credit Index returned 0.28% in Q1, its lowest quarterly return since Q4 2024 (-0.02%). Through the first two months of the year, the index returned 0.75% as economic data remained broadly resilient despite concerns around the February sell-off in software stocks, a key tariff decision by the S...
Aldi Irvan Darmansyah/iStock via Getty Images Market review and outlook The Bloomberg 1-3 Year Government/Credit Index returned 0.28% in Q1, its lowest quarterly return since Q4 2024 (-0.02%). Through the first two months of the year, the index returned 0.75% as economic data remained broadly resilient despite concerns around the February sell-off in software stocks, a key tariff decision by the Supreme Court and the growing drumbeat of war in the Middle East. The US and Israel launched combat operations against Iran on February 28, and the markets spent most of March reeling from the ongoing conflict, resulting in Brent crude oil experiencing its biggest quarterly increase since the Gulf War in 1990. While one normally thinks of a flight-to-quality trade as a rally in Treasury yields as investors move away from risk assets to safer alternatives, this was not the case in March as rates pushed higher across the curve. The Fed held rates steady at the March 18 meeting and avoided any kind of hints about the future path of rates. Despite concerns around the impact of higher energy prices on inflation due to the conflict, no participants viewed a 2026 hike as appropriate at this time. At his press conference, Chairman Jerome Powell alleviated some concern around the leadership of the Federal Reserve, stating that he would remain as chair pro tempore until his replacement is confirmed. Updates by sector Treasury The entire Treasury yield curve pushed higher in Q1, with most of the shift taking place in March after combat operations began in the Middle East. The 2-year Treasury yield climbed 41.8 basis points ( BPS ) in March, marking its biggest monthly move since October 2024 when ongoing strength in economic news had investors reconsidering rate cut expectations. The dramatic shift in March was more than enough to offset some of the compression in yield during the first two months of the year, resulting in an increase of 32 bps during Q1. But the trend higher impacted ...
Biogen Today BIIB Biogen $189.47 +1.67 (+0.89%) 52-Week Range $121.05 ▼ $205.97 P/E Ratio 20.33 Price Target $215.62 Add to Watchlist U.S. Food & Drug Administration (FDA) events crystallize the risk/reward thesis for many biotechnology stocks, and Biogen Inc.'s NASDAQ: BIIB latest Alzheimer’s update shows why that trade can turn quickly. Biogen entered May with momentum after a solid first-quarte...
Biogen Today BIIB Biogen $189.47 +1.67 (+0.89%) 52-Week Range $121.05 ▼ $205.97 P/E Ratio 20.33 Price Target $215.62 Add to Watchlist U.S. Food & Drug Administration (FDA) events crystallize the risk/reward thesis for many biotechnology stocks, and Biogen Inc.'s NASDAQ: BIIB latest Alzheimer’s update shows why that trade can turn quickly. Biogen entered May with momentum after a solid first-quarter earnings report and its planned acquisition of Apellis Pharmaceuticals NASDAQ: APLS for $41 per share, which would add two commercialized rare disease and immunology drugs and a nephrology infrastructure to anchor the felzartamab launch. Get Biogen alerts: Sign Up The bigger driver, however, was anticipation for Phase 2 data from CELIA, a study of diranersen, Biogen’s experimental tau-targeting treatment for Alzheimer’s disease. That readout arrived on May 14 and produced a mixed reaction. Diranersen missed its primary endpoint, which measured dose response on the Clinical Dementia Rating-Sum of Boxes at Week 76, and BIIB fell more than 10%. But the selloff may not tell the full story: Biogen still reported meaningful reductions in tau pathology and signs of slower clinical decline, giving investors a reason to keep the drug—and the stock’s long-term Alzheimer’s thesis—in focus. Why Tau Matters for Biogen’s Alzheimer’s Pipeline Diranersen is an antisense oligonucleotide (ASO) therapy that targets tau. Tau is a protein that stabilizes the internal transport system neurons use to carry nutrients and signals. In Alzheimer’s disease, tau can become chemically altered, detach from its structural role and form tangles inside brain cells. Along with amyloid plaques, those tangles are a defining feature of the disease, disrupting cellular communication, contributing to neuron death and tracking closely with the cognitive decline patients experience. For investors, tau matters because it appears to be the more proximate driver of symptoms. A drug that reduces tau pathology, such a...
The proliferation of artificial intelligence (AI) has been a tailwind for several companies in recent years. From hardware manufacturers making critical data center components to software providers helping enterprises integrate generative AI into their day-to-day operations, AI adoption has accelerated the growth of companies involved in deploying this technology across various niches. The good ne...
The proliferation of artificial intelligence (AI) has been a tailwind for several companies in recent years. From hardware manufacturers making critical data center components to software providers helping enterprises integrate generative AI into their day-to-day operations, AI adoption has accelerated the growth of companies involved in deploying this technology across various niches. The good news is that AI adoption is still in its early stages. A UN Trade and Development (UNCTAD) report predicts that the global AI market could grow by a whopping 25x between 2023 and 2033, generating annual revenue of $4.8 trillion at the end of the forecast period. This massive growth will be fueled by the productivity gains AI can unlock for companies that adopt it . As a result, the aggressive investments in AI data center infrastructure are unlikely to slow down any time soon. That's why, if you've $500 in investible cash right now after meeting your expenses, saving for difficult times, and clearing any high-interest debt, you can consider putting that money into shares of Applied Digital (NASDAQ: APLD) . Continue reading