Comment Yesterday the New York Federal Reserve began a five-part series looking at bond market liquidity. Below is part 1. <Click on graphic for larger image> <Click on graphic for larger image> <Click on graphic for larger image> Liberty Street Economics (NY Fed Blog) – Has U.S. Treasury Market Liquidity Deteriorated? Overall, our evidence is… Continue reading Bond Market Liquidity, Part 1
The Financial Times – Mechanics of bond indices raise concerns Investors to reassess traditional approach of debt market benchmarks For example, the US, Italy and Japan together constitute over half of the entire $42.5tn universe of the Barclays Global Aggregate, the dominant international bond gauge. In contrast, Brazil, Russia, India and China account for only… Continue reading Bond Indices
Bloomberg Business – Lisa Abramowicz: U.S. Credit Traders Send Warning Signal to Rest of World Markets Credit traders have an uncanny knack for sounding alarm bells well before stocks realize there’s a problem. This time may be no different. Investors yanked $1.1 billion from U.S. investment-grade bond funds last week, the biggest withdrawal since 2013,… Continue reading Credit As A Leading Indicator
Bloomberg.com – World’s Biggest Currency Trade Is Stuck in a Fed-Induced Rut Trading the world’s most widely used currency pair has become a thankless chore for investors. The dollar has been hovering around its short- and medium-term averages against the euro — near $1.10 per euro — since late June. An economic slowdown in China… Continue reading Dollar/Euro Trading
The Wall Street Journal – Wal-Mart Cuts Outlook on Investments in Wages, E-Commerce Retailer’s U.S. sales continue improving as store traffic picks up Wal-Mart Stores Inc. on Tuesday cut its earnings guidance for the year and gave a soft outlook for the current quarter as wage increases and investments in its struggling U.S. business pressure… Continue reading Is Walmart Pointing The Way?
None Today
Can Both Economists & The Market Be Correct? A transcript of the August 13, 2015 conference call. Handout Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/081315.mp3|titles=Conference Call ] Webcast [hana-flv-player video=”https://www.biancoresearch.com/bianco/SubscriberArea/081315.flv” width=”600″ height=”495″ description=”” player=”3″ autoload=”false” autoplay=”false” loop=”false” autorewind=”true” splashimage=”https://www.biancoresearch.com/bianco/wp-content/themes/twentyten/images/splash.jpg” /] [pageview class=”PDFViewer” url=”https://www.biancoresearch.com/bianco/wp-content/plugins/PDFViewer/plugin.php?id=268″]
Comment Jim Bianco was on CNBC with Rick Santelli Friday discussing a bias in the payroll survey, rent’s effect on inflation and global yields. To view the interview, click on the image above. To view any of our recent interviews, click here. In the interview Jim talked about the following chart which shows the 12-month… Continue reading Discussing Economic Releases
<Click on chart for larger image> CNBC – Jeff Cox: Money flees US stocks at highest level since 1993 The flight of investor money from U.S. stocks has turned into a stampede. In fact, the $78.7 billion leaving domestic equity-focused funds has been worse in 2015 than it was even during the financial crisis years,… Continue reading Equity Fund Flows
Comment So far, 461 of the S&P 500 have reported their recently quarterly earnings. 67% beat expectations. As the chart shows, this is fairly average. The second chart shows Q2 year-over-year operating earnings growth (blue line) is negative. The third chart shows expectations for 2015 growth are now near 1% (blue line). But note the… Continue reading Earnings Season Update
<Click on chart for larger image> Bloomberg.com – Bond Market’s $2.46 Trillion Dilemma May Not Be So Serious For bond investors worried about what might happen when the Federal Reserve starts whittling down its $2.46 trillion of Treasuries, there’s good news. You’ll barely even notice. The central bank plans to reduce its debt holdings sometime… Continue reading Unwinding The Fed’s Balance Sheet