(New York)

There has been a lot going on in the SPAC world, and high yield bonds have been very active lately given the rate environment too. But from a casual glance it would be hard to see that the two have much impact on one another. Yet, as it happens, SPACs are helping strengthen the high-yield bond market. According to the Wall Street Journal, “The wave of cash raised by special-purpose acquisition companies is rolling into the junk debt market, aiding distressed companies and rewarding investors who own their bonds and loans … SPACs, also known as blank-check companies, have issued roughly $100 billion of stock this year, a record, to buy private companies and take them public. Some SPACs are targeting companies with below-investment-grade credit ratings, hoping to use their cash piles to pay down debt and grow the businesses”.

FINSUM: When there is that much money in search of targets, it makes perfect sense that the search would extend into the high yield market.

(Silicon Valley)

The pandemic fueled growth in lots of different technology sectors, but it remains to be seen…see the full story on our partner Magnifi’s site

(New York)

Q1 Earnings are starting to roll in for many companies and this presents an opportunity…see the full story on our partner Magnifi’s site

(Beijing)

China is one of the largest gold consumers in the world, but the pandemic has…see the full story on our partner Magnifi’s site

(Washington)

Joe Biden jut rocked markets in a big way. Yesterday afternoon, Bloomberg reported that Biden was planning to increase the capital gains tax rate on the wealthiest Americans by double, or up to just under 40%. The same rate as income taxes. Market reversed very sharply, but have been strong today. The tax would only affect Americans earning over $1m per year, which is 0.3% of the population, but taken in conjunction with other proposals to change the basis for capital gains taxes as it concerns inheritance, this is another big step.

FINSUM: The full scale tax overhaul on the wealthy has begun in earnest. Inheritance taxes and now capital gains taxes look likely to soar, with the latter not only on the wealthy. Advisors need to be very mindful of these changes as they disproportionately affect those who employ financial advisors.