{"id":1779254,"date":"2022-12-18T06:09:23","date_gmt":"2022-12-18T11:09:23","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1779254"},"modified":"2022-12-18T10:18:31","modified_gmt":"2022-12-18T15:18:31","slug":"bond-market-sending-recession-signals","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bond-market-sending-recession-signals\/","title":{"rendered":"Bond Market Sending Recession Signals"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">10<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbond-market-sending-recession-signals%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1779254&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47-->\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Crossmark Global CIO gives his take on Blackstone limiting redemptions and on what investors should watch for on &#8216;Making Money.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Companies with top credit ratings are returning to the <a href=\"https:\/\/www.foxbusiness.com\/category\/bonds\" target=\"_blank\" rel=\"noopener\">bond market<\/a> to bolster their cash stockpiles while fretting over persistent inflation and sluggish economic growth. That\u2019s giving investors a chance to buy the safest bonds at stepped-up yields due to rising interest rates.<\/p>\n<p>Warren Buffett&#8217;s Berkshire Hathaway announced a 115 billion yen ($842 million) bond offering this month, while Duke Energy is out with a $1 billion offering. Amazon sold $8.25 billion of bonds in November.<\/p>\n<p>&#8220;Bond markets in general have begun to behave in a recession-signaling way,&#8221; market expert Adam Kobeissi told FOX Business. &#8220;For the first time all year, we are seeing bond prices up significantly while stocks fall, and this comes just one month after tech layoffs began.&#8221;<\/p>\n<h3>\u2018It\u2019s almost damage control\u2019<\/h3>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2022\/10\/931\/523\/originals-twitter-meta-layoffs.jpg?ve=1&#038;tl=1\" alt=\"Mark Zuckerberg Elon Musk.\"   style=\"display:none\"><\/div>\n<div class=\"caption\">\n<p><span>Both Elon Musk, left, and Mark Zuckerberg have fired thousands of employees from Twitter and Meta, respectively.<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/lifestyle\/layoffs-companies-copy-each-other-almost-mindless-imitation-professor-says\" target=\"_blank\" rel=\"noopener\"><strong>LAYOFFS: COMPANIES COPY OTHERS &#8216;IN ALMOST MINDLESS IMITATION,&#8217; PROFESSOR SAYS<\/strong><\/a><\/p>\n<p>The author of the Kobeissi Letter, a weekly commentary on the global capital markets, noted <a href=\"https:\/\/www.foxbusiness.com\/technology\" target=\"_blank\" rel=\"noopener\">tech companies<\/a> have already laid off more than 20,000 employees, more than the total during the entire dot-com bubble.\u00a0<\/p>\n<p>&#8220;Right now, it\u2019s almost damage control and it\u2019s certainly an indicator of a negative outlook on the markets and the economy in general for 2023,&#8221; said Mina Tadrus, CEO of Tadrus Capital, a high-yielding and fixed-income quantitative hedge fund generating returns of 2.5% per month.<\/p>\n<p>Once one company begins layoffs, it\u2019s easier for others to follow, Tadrus told FOX Business: &#8220;It\u2019s almost socially acceptable and everyone understands that.&#8221;<\/p>\n<p>Kobeissi expects corporations to <a href=\"https:\/\/www.foxbusiness.com\/category\/recession\" target=\"_blank\" rel=\"noopener\">feel recessionary pain<\/a> into mid-2023 at a minimum.<\/p>\n<p>&#8220;As interest rates continue to rise and consumers are struggling on the spending front, we expect more layoffs and potentially even more investment grade bond issuances to help corporations build a safety cushion as the recession worsens,&#8221; he said.<\/p>\n<h3>Opportunity for investors<\/h3>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/02\/931\/523\/cash-accounting-iStock.jpg?ve=1&#038;tl=1\" alt=\"image\" \/><\/div>\n<div class=\"caption\">\n<p><span>The move by top-rated companies into the investment-grade bond market is expected to continue, regardless of economic conditions or what the Federal Reserve does with interest rates.<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/personal-finance\/financial-resolutions-more-conservative-2023-fidelity\" target=\"_blank\" rel=\"noopener\"><strong>FINANCIAL RESOLUTIONS MORE CONSERVATIVE FOR 2023: FIDELITY<\/strong><\/a><\/p>\n<p>Certified financial planner Adam Soloff of Soloff Wealth Management says rising interest rates have given his firm the chance to add top-rated bonds to certain client portfolios now that rates are high enough to generate meaningful returns.<\/p>\n<p>&#8220;Given the increase in yields, especially for clients prioritizing safety and income, we have been allocating larger portions of our portfolios to investment-grade corporate bonds, as well as tax-free municipal bonds for those in higher tax brackets,&#8221; Soloff told FOX Business.<\/p>\n<p>The move by top-rated companies into the investment-grade bond market is expected to continue, regardless of economic conditions or what <a href=\"https:\/\/www.foxbusiness.com\/category\/the-fed\" target=\"_blank\" rel=\"noopener\">the Federal Reserve<\/a> does with interest rates. Many companies have bonds maturing in the near term. Others may look to refinance before the Fed completes its current interest rate hiking cycle.<\/p>\n<h3>Billions for bonds, thousands of job cuts<\/h3>\n<div class=\"inline image-ct\">\n<div class=\"m\"><source media=\"(max-width: 767px)\" \/><source media=\"(min-width: 768px) and (max-width: 1023px)\" \/><source media=\"(min-width: 1024px) and (max-width: 1279px)\" \/><source media=\"(min-width: 1280px)\" \/><img decoding=\"async\" src=\"https:\/\/a57.foxnews.com\/static.foxbusiness.com\/foxbusiness.com\/content\/uploads\/2020\/08\/931\/523\/tim-cook-apple-2-trillion-Getty-002.png?ve=1&#038;tl=1\" alt=\"image\" \/><\/div>\n<div class=\"caption\">\n<p><span>Apple CEO Tim Cook<\/span><\/p>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/apple-ceo-tim-cook-talks-very-deliberate-hiring-strategy\" target=\"_blank\" rel=\"noopener\"><strong>APPLE CEO TIM COOK TALKS &#8216;VERY DELIBERATE&#8217; HIRING STRATEGY<\/strong><\/a><\/p>\n<p>Top-rated companies began dipping into the bond market in August when Apple, Intel and Facebook parent Meta Platforms all issued investment-grade bonds \u2014 $5.5 billion for Apple, $6 billion for Intel and $10 billion for Meta, which took on debt for the first time.<\/p>\n<p>A few months later, they all announced layoffs or hiring freezes. <a href=\"https:\/\/www.foxbusiness.com\/technology\/intel-cut-thousands-jobs-pc-demand-slows-report\" target=\"_blank\" rel=\"noopener\">Intel laid off<\/a> thousands of workers in October, Bloomberg reported. Apple announced a <a href=\"https:\/\/www.foxbusiness.com\/economy\/these-companies-paused-hiring-laid-off-employees\" target=\"_blank\" rel=\"noopener\">pause in hiring<\/a> in November for many jobs outside research and development, Bloomberg also said. Meta slashed its workforce by 13%, or 11,000 employees.\u00a0<\/p>\n<div class=\"featured featured-video video-ct\">\n<div class=\"contain\">\n<div class=\"info\">\n<div class=\"caption\">\n<p>Adaptiv market technician Ian McMillian provides insight on navigating market uncertainty on &#8216;Making Money.&#8217;<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><a href=\"https:\/\/www.foxbusiness.com\/economy\/amazon-ceo-says-layoffs-continue-2023\" target=\"_blank\" rel=\"noopener\"><strong>AMAZON CEO SAYS LAYOFFS WILL CONTINUE IN 2023<\/strong><\/a><\/p>\n<p>Amazon, which sold bonds last month, is contemplating cutting as many as 20,000 jobs.<\/p>\n<p>Data compiled by Fitch Ratings shows U.S. companies issued five times more non-financial investment-grade bonds through October than &#8220;junk&#8221; bonds: $439 billion versus $79 billion of high-yield debt.<\/p>\n<p><a href=\"http:\/\/foxbusiness.com\/\" target=\"_blank\" rel=\"noopener\"><strong><u>CLICK HERE TO READ MORE ON FOX BUSINESS<\/u><\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Crossmark Global CIO gives his take on Blackstone limiting redemptions and on what investors should watch for on &#8216;Making Money.&#8217; Companies with top credit ratings are returning<\/p>\n","protected":false},"author":1,"featured_media":1779257,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[547],"tags":[6542,5458,4545,10069,3819,5193,10070],"class_list":["post-1779254","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-bongino-report","tag-bond","tag-bongino","tag-market","tag-recession","tag-report","tag-sending","tag-signals"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1779254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1779254"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1779254\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1779257"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1779254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1779254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1779254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}