Reuters – October oil shale permits drop: is the slowdown here? U.S. oil producers have been racing full-speed ahead to drill new shale wells in recent years, even in the face of lower oil prices. But new data suggests that the much-anticipated slowdown in shale country may have finally arrived. Permits for new wells dropped… Continue reading Crude Oil Production
The New York Fed – The 2015 Economic Outlook and the Implications for Monetary Policy The third implication that stems from the fact that financial market conditions matter in the conduct of monetary policy pertains to the so called “Fed put” with respect to equity prices. The notion here is that because the Federal Reserve… Continue reading Dudley Speaks
Bloomberg.com – BlackRock’s Vecht Says Oil Rout Leaves Portfolios Outdated The rapid slide in oil prices has left many money managers overseeing outdated portfolios and missing emerging opportunities from Turkey to India and Indonesia, according to BlackRock Inc. (BLK)’s Sam Vecht. Even as crude’s 36 percent plunge in less than six months eases the energy… Continue reading Crude Oil And Portfolio Management
ProPublica – Jake Bernstein: Leak at Federal Reserve Revealed Confidential Bond-Buying Details Then-Chairman Ben Bernanke ordered an internal review of the previously undisclosed leak, which found its way into a newsletter for big investors. The Federal Reserve sprung a previously unreported leak in October 2012, when potentially market-moving information about highly confidential monetary deliberations made… Continue reading Leak At The Federal Reserve Revealed QE Details
The Wall Street Journal – Oil Price Slide Means Credit Could Take a Slip Oil normally acts as a lubricant. But feeding lower-priced oil into the U.S. corporate bond market is instead causing some grinding of gears. Default risk is rearing its head. That is a challenge for investors. Ultra-loose monetary policy has helped suppress… Continue reading How Lower Crude Oil Prices Affect Credit
<Click on chart for larger image> Bloomberg.com – Hedge Funds Shut as Managers Struggle in Year of Two Percent Returns Hedge funds are shutting at a rate not seen since the financial crisis, as many managers post disappointing returns and an elite group of firms dominate money raising. The $37 billion Brevan Howard Asset Management… Continue reading Hedge Funds Close As Performance Lags
The Wall Street Journal – Dodgy Home Appraisals Are Making a Comeback Home appraisers are inflating the values of some properties they assess, often at the behest of loan officers and real-estate agents, in what industry executives say is a return to practices seen before the financial crisis. An estimated one in seven appraisals conducted… Continue reading Inflated Home Prices
MarketWatch.com – Nouriel Roubini: The return of currency wars will strengthen the U.S. dollar even more The recent decision by the Bank of Japan to increase the scope of its quantitative easing is a signal that another round of currency wars may be under way. The BOJ’s effort to weaken the yen is a beggar-thy-neighbor… Continue reading Currency Wars
Bloomberg – Barry Ritholtz: Black Friday’s Guesswork Gloom The New York Times headline declared, “Thanksgiving Weekend Sales, at Stores and Online, Slide 11 Percent.” Not to be outdone, the Wall Street Journal reported, “‘Black Friday’ Fades as Weekend Retail Sales Sink.” And — to prove I’m not playing favorites — Bloomberg News noted that, “Black… Continue reading More On Meaningless Black Friday
<Click on chart for larger image> Bloomberg.com – Treasury Inflation Outlook Drops to Three-Year Low on Oil Slide Treasury yields show bond traders cut their outlook for inflation to the lowest in three years as oil prices fell and before employment data this week economists said will add to evidence income growth is weak. Long-term… Continue reading Low Inflation Outlook
The Financial Times – ECB poised to dash bond-buying hopes The European Central Bank holds its first meeting at its new Frankfurt headquarters on Thursday but expectations of a groundbreaking programme of mass government bond buying are likely to be dashed. Hopes the eurozone’s monetary guardians were preparing to announce a package of quantitative easing… Continue reading QE In Europe
Wealth Manager – Why JPM’s $36bn US bond man is sat on 50% cash JP Morgan’s bond ace Bill Eigen is more nervous than ever, as he believes accommodative monetary policy has ‘broken’ global fixed income markets. Citywire + rated Eigen (pictured), who runs $36 billion (£22.9 billion) across a range of funds, expects further… Continue reading JP Morgan Star Bond Manager More Nervous Than ever