Diamond News Archives

The highest grade AAA corporate bonds yield 2.75%. BBB-rated corporate bonds, just one step above junk, 3.5%. BB-rated bonds yield just 4.28%.

Corporate Bond Spreads

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The spread between Prime AAA bonds and lower-medium grade bonds (see chart below) is just 0.77 percentage points.

The spread between BBB lower-medium grade bonds and non-investment grade, speculative BB-rated bonds is just 0.69 percentage points.

The spread between BBB and BB-rated bonds hit six percentage points in the great recession.

Bond Rating Steps

Chart from Wikipedia's Bond Credit Ratings^[1].

Volume of Negative-Yielding Debt Rises Sharply

In the real world, yields would never be negative. In the Central Banks' bubble-blowing world, the Volume of Negative-Yielding Debt Rises Sharply^[2].

• From a low last October of just under USD 6 trillions the value of the Bloomberg Barclays Global Aggregate Negative-Yielding Debt Index has more than doubled, increasing in value by over USD 7 trillions over the last 8 months to establish an all-time record of USD 13.2 trillions earlier in late June.
• The current situation is a manifestation of the inability of global financial markets to emerge from the era of ultra-low bond yields that central banks engineered in the wake of the global financial crisis.
• Non-conventional policies pursued by central banks in recent years have lead neither to a rise in sluggish rates of economic growth nor to an end in the disinflationary trends within the global economy.

Leverage on the Rise

Also, please note a...

Various Indian online news outlets reported that Reliance Brands had come to an understanding with the 182-year old American jewelry brand Tiffany & Co. to bring Tiffany's to India.

Reliance Brands is owned by Mukesh Ambani, India's richest businessman and industrialist. He is the chairman, managing director, and largest shareholder of Reliance Industries Limited (RIL), a Fortune Global 500 company and India's most valuable company by its market value. According to Forbes magazine, he is the richest man in Asia and the 13th richest person in the world.

It is expected that TIffany's first Indian foothold will be at Mumbai's Jio World Centre mall, which is scheduled to open in April next year. ...

AGD Diamonds, the firm that operates and owns the Grib diamond mine in northern Central Russia announced it has recovered a gem-quality, deep lemon yellow diamond, weighing 47.61 carats, on July 13, 2019.

The stone was found during the ore processing at Grib's processing plant. In a news release in Russian, AGD said the diamond is of an extremely rare deep lemon hue and is classified as a "high end stone." Experts noted its perfect octahedral shape and its high - flawless - clarity.

The company noted that the stone has been recovered undamaged thanks to the mine's innovative, advanced mining technologies and processing by means of its XRT system. ...

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References

1. ^{^} Skip to main content (www.zerohedge.com)