Bloomberg Business – Distressed Credit Draws Hedge Fund Clients, Morgan Stanley Says Investor interest in hedge funds betting on distressed credit is growing as weaker economic growth creates more investment opportunities, according to Morgan Stanley. Almost half of investors surveyed by the U.S. bank’s prime brokerage unit said they may start due diligence on distressed credit hedge funds… Continue reading Hedge Fund News
<Click on graphic for larger image> The Wall Street Journal – Dividends Eat Up Bigger Slice of Company Profits In face of low interest rates, investors clamor for higher payouts Big companies are handing more of their profits to shareholders than at any time since the financial crisis, as record-low bond yields put a premium on… Continue reading Dividends On The Rise
<Click on graphic for larger image> The Wall Street Journal – In Scramble for Yield, Pension Funds Will Try Almost Anything Options strategy used by pension funds aims to work like a volatility dampener Some pension funds are seeking to profit from others’ fear. Pension funds in Hawaii and South Carolina are plying an arcane options… Continue reading Reaching For Yield
<Click on graphic for larger image> <Click on graphic for larger image> CBS News – 27 years of economic pain for most Americans If one could put a price tag on pain, look no further than the lack of economic progress for most American families since 1989. In that year, Ronald Reagan left the White House after… Continue reading Wealth Distribution
Bloomberg.com – Riksbanker Signals QE May Reach Other Bond Types Amid Scarcity The Swedish central bank’s second in command signaled that policy makers may need to expand beyond government bonds should they be forced to continue their quantitative easing program into next year. The central bank could be nearing the limit on how much of… Continue reading Another Central Bank Reaching Its Limit
<Click on chart for larger image> <Click on chart for larger image> The Telegraph (UK) – Why economists are hopeless when it comes to Brexit I love economists, I really do. I adored economics at school, spent five years studying the subject at university and have written about the economy, among other topics, for my entire professional career.… Continue reading Economists And Brexit
<Click on chart for larger image> The Local (Italy) – Why discontented Italians could derail their economy Italians have always been pessimistic about their economy, and tend to have little faith in data that shows even just a modicum of prosperity. There was a spell of optimism when the energetic Matteo Renzi came to power in February… Continue reading Brexit 2.0? Italy’s October Referendum
The New York Times – The Fed Is Searching for a New Framework. New Minutes Show It Doesn’t Have One Yet. The quandary facing the Federal Reserve this summer is the same as it was back in the spring, and winter, and last fall: By traditional guideposts like the unemployment rate, it looks as if it… Continue reading Today’s Fedspeak
Bloomberg Markets – Everybody Has a Plan for Fannie and Freddie But Nothing Gets Done Years after government bailouts, lawsuits but no solutions … The stakes are high. Earlier this month, the Federal Housing Finance Agency, which oversees the GSEs, said Fannie and Freddie might need a $126 billion rescue if the economy were to stumble… Continue reading What To Do With Fannie And Freddie?
<Click on graphic for larger image> The Financial Times – Great resource shift leaves investors walking tightrope How oil demand pans out over the next 15 years will wield a massive influence on investment portfolios, because oil and gas companies globally comprise more than four trillion of dollars of stock market value. Energy companies constitute 7… Continue reading When Will The Oil Era End?
<Click on chart for larger image> The Wall Street Journal – Dollars Are Expensive, But Foreign Buyers Still Want Treasurys The rising cost of buying dollars is proving to be an obstacle for foreign investors who want to own higher-yielding U.S. investments. But its ultimately unlikely to deter Japanese investors from buying the longest-term U.S. Treasurys, according to Deutsche Bank. That’s one… Continue reading Hedged Treasuries Are Now Going Negative