Monday morning briefing: A new low for high yield
The NFL season wrapped up on February 7th, with the Tampa Bay Buccaneers defeating the Kansas City Chiefs 31-9 in Super Bowl 55. While Super Bowl is always a widely watched event, viewership was down from 102 million in 2020 to 96.4 million this year. Lockdowns also limited viewers at restaurants and bars.
This year’s viewership of the Super Bowl was indicative of a larger trend in our current economy: it was the most livestreamed game ever, which further demonstrates the ongoing move by consumers from cable to streaming services.
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Reasons for hope
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Adapting your business
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Advisor fees rose in 2020: Fee compression? Kitces finds most advisor fees rose in 2020
Chart of the week: A new low for high yield
The average yield of U.S. high yield bonds fell below 4%, as measured by the Bloomberg Barclays U.S. Corporate High Yield Bond Index, for the first time ever last week.
Investors’ search for higher yield, and willingness to take on more risk, could put additional downward pressure on junk bond yields. Low yields may also entice new companies to enter the market, or current issuers to look at selling more debt to take advantage of lower interest rates. How low can yields go? Let us know what you think.
Used with permission of Bloomberg Finance L.P.
News and notes (U.S.)
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Interview with Jean Hynes, the incoming CEO of Wellington: Wellington’s next CEO sees active management regaining clout
Mutual fund sales and performance over the past two weeks: Mutual funds scorecard: February 10 edition
News and notes (Canada)
Allianz takes position in Purpose Financial: Germany’s Allianz takes $53.5M stake in Som Seif’s Purpose Financial
The Toronto real estate market is expected to remain robust in 2021: TRREB forecasts strong demand for real estate in 2021
Understanding the tax consequences of pandemic relief benefits: Proactive tax planning for 2021
Helping self-employed Canadians who received CERB in error: Ottawa scraps demand that some CERB recipients repay funds