Core Insights - UBS raised its 2026 US investment grade issuance forecast to $1.8 trillion, citing increased hyperscaler capital expenditure [1] - The bank's US investment grade technology supply estimate increased to $360 billion, reflecting a significant rise in capital spending from major tech companies [1][2] - UBS maintained its forecasts for US high yield, European investment grade, and European high yield, while reducing its US leveraged loan projection [1][3] Investment Grade Issuance - The forecast for US investment grade issuance was increased due to stronger technology issuance and a rise in mergers and acquisitions, indicating a year-on-year growth of 22% [3] - Year-to-date US investment-grade issuance reached $296 billion, which is 31% higher than the previous year, with technology issuance more than doubling as a share of total supply [4] Hyperscaler Capital Expenditure - Aggregate hyperscaler capital expenditure guidance for 2026 rose by approximately $145 billion, leading to an expected public debt issuance increase of $40 billion to $50 billion [2] - Major companies like Amazon, Meta, and Google significantly raised their capital expenditure guidance, driving total projected hyperscaler capex to around $770 billion, which is about 23% higher than previous estimates [2] Leveraged Loans and Defaults - UBS reduced its leveraged loan forecast to $360 billion, citing concerns over artificial intelligence disruption risks being underpriced in loan and private credit markets [3] - The bank anticipates a marginal rise in leveraged loan defaults by roughly 2% and a spread widening to 610 basis points by the end of 2026, which may dampen refinancing and leveraged buyout activity [4] Reverse Yankee Issuance - UBS expects an increase in reverse yankee issuance, where US technology companies issue bonds in currencies like sterling and Swiss francs to diversify funding sources [5] - Despite hedged yields indicating that US dollar funding remains cheaper, particularly for longer maturities, this strategy is seen as a way to access different investor bases [5] Market Absorption and Positioning - The investment-grade market is believed to be able to absorb the additional supply, supported by muted sovereign and emerging market issuance and relatively tight spreads in structured credit [6] - UBS maintains a short position on US investment-grade technology versus the broader index, cautioning that spreads could widen despite strong demand [6]

Renowned economist Mohamed El-Erian has signaled a major structural shift in global finance as China's share of the U.S. Treasury market plummeted to a 15-year low, raising concerns over future demand for American debt. Great Retreat Data shared by El-Erian reveals that China's holdings of U.S. Treasuries now represent just 7% of the total market share—a staggering drop from the 28% peak recorded 15 years ago. The total holdings have fallen to approximately $682.6 billion, the lowest level since 2008. “A ...

The Federal Reserve cut its key interest rate by a quarter point (25 basis points) at the December FOMC meeting, placing the overnight borrowing rate in the 3.5%-3.75% range. GOBankingRates consulted experts to gather their predictions about what will happen to mortgage rates in the coming year. While many believe that interest rate decisions are the only thing responsible for mortgage rates, that’s not the case. When predicting mortgage rates, it’s important to consider current market conditions, includi ...

Andrew Wishart, from Berenberg, said: “Parts of the inflation basket most sensitive to labour costs remain a little too high for comfort. As a result, March may prove too soon for the next rate reduction.”Despite market expectations of a rate cut in March rising, several economists have said the Bank of England will hold off on lowering borrowing costs until April.The FTSE 100 rose 1.1pc to 10,671.72, powered higher by gains in mining stocks.London-listed stocks have continued to climb higher, as slowing in ...

Key TakeawaysSoftBank Group (SFTBY) is leading a massive $33.3 billion consortium including Goldman Sachs (GS) and Panasonic (PCRFY) to develop gas-fired power plants in the U.S. to support AI data centers.The ECB's Piero Cipollone confirmed the Digital Euro will feature transaction fees designed to undercut international card giants like Visa and Mastercard, though costs may remain higher than some domestic schemes.Geopolitical tensions spiked as the U.S. alleged China conducted a secret nuclear test in 20 ...

Core Viewpoint - Western Digital is set to sell a stake worth $3.17 billion in Sandisk, indicating a strategic move in the flash memory market [1]. Group 1: Transaction Details - Western Digital will sell over 5.8 million shares of Sandisk at a price of $545 each [1]. - The offering price represents a discount of approximately 7.7% compared to Sandisk's last closing price of $590.59 [1].

Welcome to February 2026, where the primary driver of global equity valuation isn’t the Federal Reserve’s dot plot or quarterly earnings reports, but rather the notification bell on a specific social media platform. As of February 18, 2026, the “Trump Trade” has evolved from a speculative bet into a full-contact sport, leaving analysts at Goldman Sachs and Morgan Stanley to spend their mornings deciphering the macroeconomic implications of 3:00 AM posts written in all-caps. It is a truly efficient market, p ...

Core Insights - Berkshire Hathaway Inc. significantly reduced its stake in Amazon.com Inc. by over 75% in Q4, while acquiring a new stake in the New York Times Co. valued at $351.7 million [1][2] Investment Changes - Berkshire Hathaway's current holdings in Amazon now stand at approximately 2.3 million shares after the reduction [2] - The company also decreased its stakes in Bank of America Corp. and Apple Inc. to 7.1% and 1.5%, respectively, starting in 2024 [2] New Investments - During the same period, Berkshire Hathaway increased its stakes in Chevron Corp. to 6.5% and Chubb Ltd to 8.7% [3] - The initial investment in Chubb was revealed in May 2024, following a secret accumulation of shares the previous year [3] Strategic Acquisitions - Buffett has been actively pursuing new acquisitions, including a $9.7 billion deal for Occidental Petroleum Corp.'s petrochemical business and a $5.6 billion stake in Alphabet Inc. [4] - Following the announcement of the New York Times Co. investment, its shares rose over 10% in post-market trading [4]

Group 1 - Berkshire Hathaway reduced its stake in Amazon by over 75% in Q4, while investing $351.7 million in the New York Times Company [1][3] - The company acquired 5.1 million shares of the New York Times Company, valued at $351.7 million at year-end [3] - Berkshire continued to trim its stakes in Bank of America and Apple, reducing them to 7.1% and 1.5%, respectively [4] Group 2 - Berkshire increased its stakes in Chevron and Chubb to 6.5% and 8.7%, respectively, during the same period [5] - Chubb's shares rose approximately 11% in Q4 after reports of an informal approach to acquire American International Group Inc. [5] - Warren Buffett has been active in making purchases, including a $9.7 billion deal for Occidental Petroleum Corp.'s petrochemical business and a $5.6 billion stake in Alphabet Inc. [6]

US FTC finalizes consent order in Boeing acquisition of Spirit AeroSystems | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]The logo of Boeing is seen at the 55th International Paris Airshow at Le Bourget Airport near Paris, France, June 20, 2025. REUTERS/Benoit Tessier/Pool [Purchase Licensing Rights, opens new tab]- Companies[Boeing Co]FollowWASHINGTON, Feb 17 (Reuters) - The U.S. Federal Trade Commission on Tuesday said it finali ...