Assignment Please read the instructions carefully. You need to write 6 sentences

ID: 2455598 • Letter: A

Question

Assignment Please read the instructions carefully. You need to write 6 sentences for each article which includes what i have given in instructions.

Instructions

For the two articles below:

Write a few sentences explaining how the article is relevant to Verizon or Sprint Mobile. How and why would you expect it to affect stock prices, and whether they were affected in the way you expected (do this in terms of expected future earnings). Because traders buy or sell stocks immediately as new information becomes available, stock prices respond rapidly. Be sure to include the date of the article. You should be able to distinguish whether the news was relevant to only one of your stocks, your industry, or the whole market by noting the relative price changes - if only one of your stocks went up while the market was down, the news affected only your stock; if both your stocks moved differently from the market, the news probably affected your industry as a whole; if your stocks moved in tandem with the market, the news probably broadly affected the whole economy. You should also be able to explain why the news affected just one company, the industry, or the whole market. The articles selected should be balanced chronologically and topically.

Article 1:

Vodafone Postpones a Bond Sale

Investors may be concerned the company could take on more debt by making more acquisitions

Mike Cherney

Updated Nov. 23, 2015 7:49 p.m. ET

0 COMMENTS

British telecommunications firm Vodafone Group PLC postponed a U.S. debt sale, the latest sign of weakness in the bond market amid worries about the pace of economic growth.

ENLARGE

British telecommunications company Vodafone Group postponed a U.S. debt sale on Monday. Photo: Agence France-Presse/Getty Images

Vodafone was looking to sell bonds that mature in 30 years, though no size had been set for the deal. It still could decide to proceed with a bond sale at a later date.

A company spokesman declined to comment.

Analysts said investors were concerned that Vodafone, which bought Spanish telecom firm Grupo Corporativo Ono SA last year and has been downgraded by credit-rating firms over the past 18 months, could seek to make more acquisitions and take on even more debt, hurting the value of the company’s bonds outstanding. That concern was probably increased by recent news of other large acquisitions, such as the $155 billion deal announced Monday to combine Pfizer Inc. with Allergan PLC.

Vodafone on Monday offered to increase the interest rate on its new bonds should the company be downgraded below investment grade, an unusual step given how easy it has been for companies to sell new bonds in recent years. Firms have been selling bonds at a record pace as investors, seeking interest rates higher than what was available on low-risk government debt, piled into corporate bonds.

Vodafone’s new bonds were expected to be rated in the triple-B area, the lowest investment-grade category. The bond was expected to yield about 2.50 percentage points more than benchmark U.S. Treasurys. An outstanding 2043 bond from Vodafone traded Monday at about 86 cents on the dollar, down from 88.1 cents last week, according to MarketAxess.

Some analysts have started questioning the health of the corporate-debt market, saying companies could have problems repaying debts if the global economy slows. Defaults are expected to rise in coming months, and more companies are getting downgraded by credit-rating firms.

Last week, Veritas postponed a debt deal financing the firm’s leveraged buyout by private-equity firm Carlyle Group LP, which was buying Veritas from cybersecurity firm Symantec Corp. , according to S&P Capital IQ LCD. Some corporate-bond sales also were postponed at the end of September during turmoil in financial markets.

“It is a little bit of a warning sign,” said Brian Kloss, portfolio manager at Brandywine Global Investment Management. “You need to be cautious at this point.” Mr. Kloss said his firm wasn’t considering the Vodafone deal because of heightened mergers-and-acquisitions activity in the telecom sector.

Still, some analysts said investors’ concerns were limited to Vodafone and didn’t reflect broader worries. Other companies successfully sold bonds on Monday, including Lloyds Banking Group PLC and MetLife Inc., indicating that debt markets remain open for new bond deals.

Write to Mike Cherney at mike.cherney@wsj.com

Verizon Communications Inc. VZ (U.S.: NYSE)

Sprint Corp. S (U.S.: NYSE)

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S&P 500

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S&P 500

NOV

4:03PM EST

45.04

1.49

4:00PM EST.

4.21

1.49