Finimize - ⚡️ China's EV market is blowing up

TOGETHER WITH

Hi Reader, here's what you need to know for January 12th in 3:06 minutes.

🍵 Finimized over a ginger mint tea at Salvation Cafe in Johannesburg, South Africa (🌥 27°C/81°F)

Today's big stories

Companies have already raised more than $100 billion from bonds this year
Goldman Sachs is expecting interest rates to rise fast this year, and there are six ways you can prepare – Read Now
China sold nearly three times more hybrid and electric vehicles last year

Desperate Times

What’s Going On Here?

Data out on Tuesday showed companies sold over $100 billion worth of bonds last week – before they have to resort to more desperate fundraising measures…

What Does This Mean?

The first week of the year’s always a busy time for the bond market, but this one’s been busier than most – not least because companies are scrambling to raise money before interest rate hikes push up the cost of borrowing. In fact, companies have raised over $100 billion selling bonds in what’s become the second-biggest start to a year on record. Investors aren’t just sniffing around low-risk debt either: pandemic-battered cruise operator Royal Caribbean raised $1 billion last week, and AMC Entertainment – which had a brush with bankruptcy in the height of the pandemic – is reportedly thinking about getting in on the action too.

Why Should I Care?

The bigger picture: Time is of the essence.
Companies are right to get a move on, with news emerging last week that the Federal Reserve is thinking about upping interest rates sooner than expected. And since traders are betting that there could be as many as eight rate hikes by early 2024, selling debt might get very expensive very quickly. Investors are okay with it: they’ve already started withdrawing their orders for new bonds, in hopes it’ll only be a couple of months before they can buy into them at higher yields.

Zooming out: The backup plan.
It stands to reason, then, that companies aren’t just relying on debt to raise cash, but venture capital (VC) too. Just look at Getir: the Turkish grocery delivery company is reportedly looking for more than $1 billion in investment from VC firms, in a move that would see the company valued at $12 billion (tweet this). That’s an ambitious goal, but they might be knocking at the right door: American VC funds raised a record amount of cash last year.

You might also like: How to profit from this sudden supply of bonds.

Copy to share story: https://www.finimize.com/wp/news/desperate-times/

🙋 Ask a question

Analyst Take

Buckle Up For Breakneck Interest Rate Hikes

Reda, Analyst

What’s Going On Here?

First, details from the Federal Reserve’s December meeting released last week suggested it’ll raise US interest rates sooner than expected.

Then, this week, Goldman Sachs argued that the Fed will raise them four times this year – a breakneck pace, by central bank standards.

And that means it’s more urgent than ever to build a rate hike-proof portfolio.

There are six ways to do that, from swapping out certain stock allocations to tweaking your bond portfolio.

So that’s today’s Insight: the six things you can do to protect yourself from interest rate hikes.

Read or listen to the Insight here

The new wave of investing is here

Using your precious free time to scour Wall Street Bets on Reddit can get pretty old pretty fast.

That’s why, this year, you might want to sit back, relax, and roll out some smart passive investments.

Fund That Flip is an easy-to-use crowdfunding platform that enables you to invest in real estate, so you get to bolster your portfolio with a reliable passive income.

That doesn’t mean compromising on returns, mind you: Fund That Flip investors can earn up to 9.5% a year on their investments, and you can get started with just $1,000.

You’ll have peace of mind too, since every new project is carefully reviewed by Fund That Flip’s expert team to make sure it meets their standards.

Let the experts do the hard work for you: try Fund That Flip today.

Ride The New Wave