Pizza Hut holds early investor talks before possible bond sale
The potential offering is expected to be a whole business securitization, where a company essentially borrows against its cash-generating assets.
The potential offering is expected to be a whole business securitization, where a company essentially borrows against its cash-generating assets.
Traders were pricing in about a 35% chance the Fed opts for an interest-rate hike later this month after U.S. producer prices rose in September at the fastest pace in more than four years.
Traders priced in a roughly coin-toss probability that the U.S. central bank boosts rates at its October meeting after consumer prices advanced at the fastest pace in five months.
The risk stems from the way traders provide the bonds that are delivered when futures contracts are settled.
During the past few weeks the term premium spiked to levels not seen in over a decade and drove the latest leg of the bond selloff that's sent US Treasury yields to a 24-year high.
Thirty-year bonds wiped out an early loss to advance on Thursday, with yields down a basis point to 5.66% — just off their highest levels since 2002.
The global bond market has been hammered in recent weeks as elevated energy prices fueled concerns about faster inflation and further central-bank rate increases.
The company has more than $400 million of outstanding ABS, and is now in talks with creditors over what happens to its remaining assets and operations.
While much of the borrowing for the AI buildout has gone toward data-center construction, increasingly large debt packages are now being arranged to finance the chips.
Investors remain wary of calling a top in yields after a steady march higher from mid-August as the economy expands amid booming AI infrastructure spending.
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