월스트리트저널 읽기 - Fed, Leveraged Loans, Instacart etc.

WEDNESDAY, SEPTEMBER 20, 2023

 

◈ Fed Debates When to Stop Raising Rates(연준, 금리 인상 중단 시기 논의)

 

 

Federal Reserve officials are set to hold interest rates steady at their meeting Wednesday while debating what it would take for them to lift borrowing costs again this year

 

Their anticipated decision would mark the second time in six policy meetings this year that the Fed hasn’t raised rates, slowing the pace of increases to allow more time to study their effects on the economy and inflation.

 

The central bank will announce its decision and release policy makers’ quarterly economic projections at 2 p.m. Eastern Time. Fed Chair Jerome Powell will answer questions from reporters at 2:30 p.m.

 

◈ Leveraged Loans Are Surprise Wall Street Star(레버리지 대출은 놀라운 월스트리트 스타입니다)

 

 

It is one of the biggest surprises on Wall Street: the outsize performance of risky corporate loans.

 

Since the start of last year through Monday, loans backed by companies including Pet-Smart and Uber Technologies in the Morningstar LSTA U.S. Leveraged Loan Index delivered a return of 9.4%, buoyed by higher interest rates and a resilient economy. Investment-grade bonds lost 13% in that time, counting price changes and interest payments, while the S& P 500 lost 3.9%.

 

Few investments have been as maligned as leveraged loans, the low-rated debt often used to fund private-equity company buyouts. When the Federal Reserve started aggressively raising rates last year, many analysts warned that these loans were vulnerable because their rates rise and fall with those set by the central bank.

 

◈ Instacart Stock Rises 12% in Debut(인스타카트 주가 데뷔 12% 상승)

 

 

Instacart ’s shares jumped in their trading debut, another promising sign for a reawakening IPO market. Shares of the grocery-delivery company finished their first day of trading at $33.70 on Tuesday on the Nasdaq exchange under the ticker CART, up 12% from the IPO price of $30 a share.

 

Instacart’s initial public offering had been in the works for years, and Chief Executive Fidji Simo said in an interview that the company’s main goal with the offering is to provide liquidity to its employees. Instacart already has been operating like a public company, she said, and following the IPO it will continue to look for acquisition targets and other ways to build its retail support technology.

 

At its closing price, Instacart commanded a valuation of more than $11 billion on a fully diluted basis.

 

At its closing price, Instacart commanded a valuation of more than $11 billion on a fully diluted basis.

 

Instacart shares traded around $38 in afternoon trading, as the broader market declined. That gave the company a valuation of more than $12.6 billion on a fully diluted basis.

 

Instacart, formally known as Maplebear, has been one of the buzziest IPOs this year along with British chip designer Arm and marketing-automation company Klaviyo, and will serve as a signal for whether the market has opened for new listings after a lengthy freeze.

 

◈ Disney to Invest in Theme Parks, Cruises(디즈니, 테마파크·크루즈에 투자)

 

 

Walt Disney plans to spend about $60 billion to expand its theme parks, cruise lines and resorts over the next decade, almost doubling its investment in a division that provides its primary source of profits.

 

Chief Executive Bob Iger and Josh D’Amaro, chief of the company’s Parks, Experiences and Products division, unveiled the plans—which were light on details of specific projects—at an investor summit held at Walt Disney World in Orlando, Fla., this week. The company outlined the planned investment in a filing Tuesday morning with the Securities and Exchange Commission.

 

Disney said it would give priority to spending on projects that could generate strong returns, including for its U.S. and international parks and cruises. Among the possibilities: “Frozen” could have a presence at Disneyland Resort, while Wakanda from the “Black Panther” franchise could be “brought to life,” the company said.

 

Disney has more than 1,000 acres of land available for de-velopment into park space to accommodate the more than 100 million visitors who come to its theme parks across the globe each year. The company plans to roll out more cruise ships and establish a new home port in Singapore.

 

◈ New York Hotel Market Stages Rebound(뉴욕 호텔 시장 반등 단계)

 

 

New York City’s hotel recovery is checking in early.

 

The pandemic hit New York City harder than any other U.S. lodging market. Tourists stayed away and business travel dried up. Dozens of hotels with thousands of guest rooms closed their doors permanently, more than in any other major market.

 

Now, several factors are driving room rates above pre-pandemic levels, including a surge in tourism and demand from the city for rooms to house migrants. New York hotels charged $260 a night on average in August, according to data firm CoStar, roughly 17% more than the same month in 2019. That was New York’s highest rate for the month of August since 2008.

 

Supply is unlikely to grow significantly in the coming years due to city restrictions on new hotel development.

 

The city’s new restrictions on Airbnb rentals are expected to boost business by limiting short-term rental supply. Hotel room revenue could rise by as much as $380 million in 2024, which would help push revenue per available room to levels not seen since the 2008 financial crisis, according to real-estate investment firm JLL.

 

◈ Highest Treasury Yields Since 2007 Depress Stocks(2007년 이후 최고 국채 수익률로 주가 하락)

 

 

Bond yields reached their highest level since at least 2007, putting pressure on stocks ahead of the Federal Reserve’s next interest-rate decision.

 

The specter of high bond yields lasting for an extended period dug into stocks in early t r a d i n g , though shares of tech and h e a l t h c a re companies recovered later in the day. The benchmark S& P 500 slipped 0.2%, the Dow industrials lost 0.3% and the Nasdaq Composite fell 0.2%.

 

Shares of Amazon.com fell 1.7%, dragging indexes lower.

 

Walt Disney’s plan to spend $60 billion to expand its theme parks and other ventures, meanwhile, pulled its stock down 3.6%, weighing on the blue-chip Dow. The 10year Treasury yield finished at 4.366%, up from 4.318% on Monday. The two-year yield climbed to 5.109% from 5.062% as bond prices fell.

 

Few investors expect the central bank to raise rates from the target range of 5.25% to 5.5% at Wednesday’s meeting. Still, fresh economic data rattled investors on Tuesday: The lowest number of monthly housing starts since June 2020, coupled with hotter- than-expected inflation in Canada, fanned fears that resilient price pressures will prompt the Fed to increase rates later this year.

 

 

오늘도 경제신문으로 세상을 봅니다.