Netflix continues to be in debt

netflixLast week, Netflix presented very solid figures for the first quarter. Even before, I had assumed that the company would soon raise more money in the bond market. And that’s exactly what you do now. With an improved credit rating and rising EBITDA profits, the video streaming giant is going on.

What’s new?
On Monday morning, Netflix announced it would raise about $ 1.5 billion from another bond sale. No wonder – since the fall of 2016, the company reliably sells senior notes every six months.

The magnitude of this this cash-raising – had increased from time to time. At first it was 800 million dollars, then 1.3 billion and then another 1.6 billion dollars. This time it is “only” $ 1.5 billion.

As always, these funds are used for “general business purposes,” but above all to support the capital-intensive creation of Netflix’s original series and films.

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Tesla announces another billion-bond

Tesla-Model-3

The electric car company Tesla wants to get in the midst of production expansion for its first cheaper model more money on the market.

The electric car pioneer Tesla wants to raise about $ 1.5 billion on corporate bonds. The company announced the issuance of unsecured debt securities maturing in 2025. Financial details such as the interest rate are yet to be determined. This would give the Palo Alto-based company greater financial flexibility to ramp up production of the Model 3, which Tesla intends to enter the mass market.

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Stocks set to rally as bond yields dip, Powell to signal direction of rate hikes in the US

powell

A rally in Asian equities looked set to prolong  into a third week after US stocks posted strong gains and Treasury yields dipped with US monetary policy back in focus in a week that includes two appearances from Federal Reserve Chairman Jerome Powell. The yen dropped.

Futures in Japan, Australia and Hong Kong all signaled equities will rise when Monday trading starts after the S&P 500 Index rose 1.6 per cent Friday.

Powell will address the House Financial Services Committee tomorrow and the Senate Banking Committee two days later to give his Humphrey-Hawkins testimony.

Bond traders are pricing less than the three quarter-point rate hikes that Fed officials  havesignalled as likely this year.

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