Microsoft bonds are seen as safer than Treasurys as default X-date nears

Bonds issued by corporations with top credit scores now have lower yields than Treasurys due this summer as investors look to hedge their bets on a potential US default.

While Wall Street largely expects lawmakers to reach a deal on lifting the debt ceiling and avoiding default, negotiations between the White House and Republicans in Congress have dragged on. In recent days, investor demand for top-rated corporate bonds have bid up those prices, sending their yields down and revealing varying assessments of risk.

For example, Microsoft bonds that are due August 8 have traded with a yield just above 4%, according to Solve Data metrics cited byJohnson & Johnson's bonds due in November have yields that are nearly a percentage point below those of Treasurys with a similar maturity, the Journal said. In less turbulent periods, corporate yields are above Treasurys. But now more investors are paying a premium to buy lower-yielding corporate debt, preferring it over traditionally"risk-free" Treasurys.

Source: Financial Digest (financialdigest.net)

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Microsoft defeats gamers' bid to block $69 bln Activision deal in US courtMicrosoft Corp evaded a potential early legal obstacle in its $69 billion deal to acquire 'Call of Duty' videogame maker Activision Blizzard Inc , when a U.S. judge on Friday refused to allow gamers in a private suit to preliminarily block the acquisition.
Source: Reuters - 🏆 2. / 97 Read more »

Onfido: Microsoft-backed identity startup acquires AirsideMicrosoft-backed identification verification startup Onfido acquires US counterpart Airside for undisclosed fee
Source: BusinessInsider - 🏆 729. / 51 Read more »

Microsoft confirms 365 Co-Pilot AI will be 'natively integrated' into Edge | EngadgetThe same AI assistant that Microsoft is adding to Office will soon be natively integrated into the company's Edge browser as well..
Source: engadget - 🏆 276. / 63 Read more »

Microsoft’s Nadella: AI is taking the computer age from ‘the bicycle to the steam engine’OpenAI will start using Microsoft’s Bing as the default search experience for ChatGPT, Microsoft CEO announces
Source: MarketWatch - 🏆 3. / 97 Read more »

Microsoft is bringing Copilot to Windows, and I'm sad for CortanaMicrosoft has announced that it is bringing Copilot to the taskbar to make it, rather than Cortana, the future of a Windows assistant.
Source: BGR - 🏆 234. / 63 Read more »

Watch the Microsoft Build 2023 keynote in under 10 minutes | EngadgetWatch the Microsoft Build 2023 keynote in under 10 minutes
Source: engadget - 🏆 276. / 63 Read more »