The Wall Street Journal – Pimco ETF Draws Probe by SEC The Securities and Exchange Commission is investigating whether bond giant Pacific Investment Management Co. artificially boosted the returns of a popular fund aimed at small investors, according to people familiar with the matter, the latest challenge for the firm run by investor Bill Gross.… Continue reading Pimco ETF Investigated By The SEC
Bloomberg.com – Dudley Plays Down Significance of Fed’s Rate Forecasts A top Federal Reserve official counseled investors against putting too much emphasis on the central bank’s projections for the benchmark interest rate. “People shouldn’t overweight the value of those dots, especially as you get out further in terms of the time horizon,” William C. Dudley,… Continue reading Does The Dot Chart Matter?
Barron’s – The Fed: Something for Everyone Who should we believe? The dots, or our lying eyes? The Federal Reserve this week inched to a slightly more hawkish stance on its infamous “dot plot,” a graph that shows when members of the Fed’s policy committee want to begin raising interest rates. But Fed Chair Janet… Continue reading Understanding The FOMC
Bloomberg.com – Dudley Says Financial Stability Definitely on Fed’s Radar The Federal Reserve is on the lookout for signs of asset-price bubbles, and financial stability is a necessary condition for effective monetary policy, said William C. Dudley, president of the Federal Reserve Bank of New York. “I think we do need to try to identify… Continue reading More on Financial Stability And The Fed
Business Insider – JULIAN ROBERTSON: There Are Two Bubbles That Can Bite Us Julian Robertson gave a warning about two bubbles that could “bite us” at Bloomberg Market’s Most Influential Summit. “I agree with the fact that the economy is definitely getting better. I think the cause of that is two bubbles that will bite… Continue reading Your Daily Installment Of Bond Market Hate
<Click on chart for larger image> Comment The chart above shows all fixed-income trading volumes are well below their 2007/2008 peaks. On a relative basis Treasury volume is down the least (thanks to QE keeping this market artificially active?) and corporate bonds are down the most (by well over half). Bloomberg.com – Shrinking Bond Desks… Continue reading The End Of The Bond Salesman (Masters Of The Universe)?
Comment Jim Bianco was on Andy Busch’s show Engage late last week. To view the interview click on the image above. To view any our recent interviews, click here. On the second segment of Engage above, Jim talked about the problems confronting the ECB as they attempt quantitative easing and the problems facing China as… Continue reading Discussing The ECB, QE and China
<Click on chart for larger image> USA Today – Why Warren Buffett hates gold Warren Buffett didn’t become one of the greatest investors of our generation by investing in gold. In fact, he pretty much hates the shiny metal. Just take a look at part of a speech Buffett gave at Harvard in 1998 when… Continue reading Gold Hate
Comment Below are a couple graphics showing poll results for control of the House. The first comes from Real Clear Politics while the second comes from the Iowa Electronic Markets. Despite the partisan tone of the story above, Republicans are still predicted to hold a sizable majority in the House. <Click on chart for larger… Continue reading The Battle For House Seats – Update
Zero Hedge – Let This Be A Warning To All Bears Tonight’s Kodiak Moment is brought to you courtesy of the NYPD and one protesting polar bear, which apparently did not get the memo that bears are, how should one say, not welcome on Wall Street…
<Click on chart for larger image> The Wall Street Journal – Fed Tightens Taps on Rates-Market Plumbing Some observers say the Fed faces a challenging balancing act. It wants to use reverse-repo trades to manage short-term rates, but it doesn’t want to create a new low-risk instrument so appealing that it becomes a centerpiece of… Continue reading The Fed’s Reverse Repo Facility