Comment On Friday, June 19, 2015 at 9 AM CT (10:00 AM ET, 7:00 AM PT, and 15:00 BST), Bianco Research, in conjunction with Arbor Research & Trading, will be hosting a webcast/teleconference moderated by Jim Bianco. Volatility and rate hikes will be the main topics of discussion. Central banks’ policies of zero interest rates,… Continue reading On Rate Hikes And Volatility
<Click on graphic for larger image> CNBC – Wall Street sees Fed rate hike in 3Q: CNBC Fed survey After a weak first quarter and a rebound in the second, Wall Street remains convinced of a Fed rate hike in the third quarter. Respondents to the CNBC Fed Survey continue to look for the Fed’s… Continue reading What To Expect From The Fed Tomorrow
<Click on graphic for larger image> Bloomberg.com – U.S. Building Permits Soared to Their Highest Level in Nearly Eight Years The U.S. home-building industry enjoyed its best two months in more than seven years as it headed into its busiest season, even as it began work on fewer houses last month following an April surge.… Continue reading Something Wrong With Housing Permits?
The Financial Times – Central banks enter the unknown with sub-zero rates For years, central bankers have treated the fabled interest rate known as the “zero lower bound” as if it were a physical barrier. Like the notion that temperatures cannot fall below absolute zero, policy makers thought they could not impose negative borrowing costs,… Continue reading RIP Zero Lower Bound
<Click on chart for larger image> The Financial Times – US junk bond sell-off entices investors The US junk bond sell-off — culminating last week in the biggest investor outflow since 2014 — has begun to entice asset managers who are betting the market will recover despite the prospect of US rate increases this year.… Continue reading High Yield Bonds
The Financial Times – Banks’ liquidity lobbying is self-serving Too many markets are crowded with buyers seeking refuge from zero-interest rate policies When banks start offering policy makers solutions to market problems, hold on to your wallet. The latest lobbying effort concerns liquidity: how easy it is to buy and sell, particularly in the bond… Continue reading More On How To (Not) Fix Bond Market Liquidity
The Telegraph (UK) – Europe draws up Greek capital control plans as default is ‘all but a certainty’ Eleventh hour bail-out talks last just 45 minutes with reports creditor powers are planning ultimatum offer with threat of capital controls • EU plan ultimatum deal and threat of capital controls if no agreement is reached this… Continue reading Your Daily Installment On Greece
The Wall Street Journal – Former AIG Chief Hank Greenberg Wins Moral Victory in Bailout Trial Court rules government exceeded its authority in 2008 rescue of insurer, but awards no damages Nearly seven years after the government’s 2008 takeover of American International Group Inc., Maurice R. “Hank” Greenberg won an unlikely victory in his legal… Continue reading The Fed Bailout Of AIG Was Illegal
The Financial Times – Finra summons banks and asset managers over market fears A US financial regulator has summoned a clutch of senior executives from banks and asset managers for two discreet meetings to explore potential solutions to a liquidity crunch confronting bond markets, which could include delayed reporting for trading big blocks of debt.… Continue reading Fixing The Liquidity Problem
The Wall Street Journal – Jon Hilsenrath: Fed Hones Tricky Message as It Nears Boosting Rates Federal Reserve officials face a communications challenge as they tiptoe toward raising short-term interest rates later this year. They want to reassure investors and the broader public that rate increases, when they come, are likely to be gradual and… Continue reading The Difficulty In Hiking Rates
<Click on graphic for larger image> Barron’s – Bond Funds Saw Massive Withdrawals Last Week; High Yield ETFs Working Properly Recent turbulence in the bond markets sparked the biggest weekly outflow from bond mutual and exchange-traded funds in 18 months. Bond funds experienced $5.9 billion in redemptions in the week ended June 10, the most… Continue reading Outflows In Bond ETFs