<Click on chart for larger image> The Financial Times – Debate gathers pace on whether corporate bonds are too ‘hot’ Companies continue to borrow money at eye-poppingly low rates of interest. Last week, investors bought nearly $5bn of bonds from Microsoft, with some of the debt paying the lowest interest rates on record. Activity is… Continue reading Corporate Bonds
Barrons.com – Is the Fed Mulling ‘Qualitative’ Easing? At last week’s meeting, the FOMC pointedly said that inflation is currently “somewhat below those the Committee judges most consistent, over the longer run, with its mandate to promote maximum employment and price stability.” As a result, the panel added “it is prepared to provide additional accommodation… Continue reading Bernanke’s Put
<Click on chart for larger image> Bloomberg.com – Home Prices in U.S. Cooled in July After Tax Credit Expired Home prices in 20 U.S. cities rose at a slower pace in July from a year earlier as the end of a government tax credit hurt sales. The S&P/Case-Shiller index of property values increased 3.2 percent… Continue reading Case Shiller Home Price Update
Fortune.com – Meredith Whitney’s new target: The states Put simply, the study warns that the giant gap between states’ spending and their tax revenues, estimated at $192 billion or 27% of their total budgets for the 2010 fiscal year, presents two dangers that investors are seriously underestimating. First, municipalities could start defaulting on their bonds… Continue reading The States Financial Woes
The Wall Street Journal – Investors, Regulators Laid Path to ‘Flash Crash’ The 2010 concept release questions whether having numerous trading centers, compared with essentially two a decade ago, could have a damaging effect. It asked whether there should be minimum requirements on the duration of orders. And one question that became especially relevant after… Continue reading The Flash Crash
The Wall Street Journal – Banks and Insurers Face the Killing Yields While firms have dealt with falling yields for 30 years, this is the first time they have faced a zero floor on funding costs. Adding to the painful mix, the pressure on margins comes at a time of tighter regulation and a moribund… Continue reading Low Bond Yields Are Making It Hard For Banks To Conduct Business
Pimco.com – Bill Gross: Stan Druckenmiller is Leaving The predicament, of course, is mimicked by all institutions with underfunded liability structures – insurance companies, Social Security, and perhaps least acknowledged or respected, households. If a family is expecting to earn a high single-digit return on their 401(k) to fund retirement, or a similar result from… Continue reading Bill Gross Speaks
The Financial Times – AIG ready to discuss Treasury exit plan AIG’s board is set to finalise a restructuring plan on Wednesday that would increase the US Treasury’s stake in the insurer to about 90 per cent as a step toward an eventual government exit. People close to the situation said AIG directors were expected… Continue reading AIG’s Exit Plan
The Financial Times – Dubai bond sale set to raise up to $1.25bn The Dubai government was set to raise as much as $1.25bn as its sovereign bond issue moved to price on Wednesday, people aware of the issue said. It was four times subscribed as the book closed in Europe on Tuesday, they said,… Continue reading Dubai
<Click on chart for larger image> FT Alphaville ( FT Blog) – D Day’ for Anglo Irish The fortunes of Anglo Irish debt investors burst into market consciousness last week, though the issue has been rumbling within Ireland for some time. Anglo was nationalised in 2009, after the government started to guarantee some bank liabilities… Continue reading Ireland
Bloomberg.com – Bears Bailing Isn’t the Cause of S&P 500 Surge, Birinyi Says The proportion of stock sold short among all U.S. companies represents 3.8 percent of shares available for trading, the highest level of the year, according to data compiled by the Westport, Connecticut-based research and investment firm. Short sellers borrow stock to sell… Continue reading September’s Rally
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