Salient to Investors: Stephen Stanley at Pierpont Securities sees nothing on the economy side to have precipitated such a seismic shift in the Fed’s approach to QE. Stanley said QE was contributing to a market environment where people were taking too much risk, and the beginning of tapering in September is
READ MORE... →Salient to Investors: Investors say difficulty trading debt from fledgling markets is driving them away. Timo Boehm at Pimco said new markets, such as South Korea or Turkey, don’t have sufficient liquidity. Georg Grodzki at Legal & General Investment Mgmt said home loans used to support covered bonds vary across
READ MORE... →Salient to Investors: Matthew C. Klein writes: The FRB of Chicago says it would take 4 more years of job gains at the current pace of 195,000 per month to jobs to return to full employment and close the gap that began opening at the end of 2007. The US is
READ MORE... →Salient to Investors: Dan Dorrow at Faros Trading said the strong jobs numbers suggests tapering sooner because the cumulative strong momentum is there. Bill Gross at Pimco sees a stronger dollar ahead, but not US-growth friendly as the ECB and BOE ease while Fed tapering looms. Fed-funds futures indicate the probability
READ MORE... →Salient to Investors: Tony Crescenzi at Pimco said the payroll data will keep the Fed on the taper trail. Goldman Sachs said the FOMC will taper sooner than they had expected. Michael Feroli at JPMorgan Chase now expects tapering to begin at the September FOMC meeting. Lou Crandall at Wrightson ICAP said the jobs report
READ MORE... →Salient to Investors: Morningstar says 10 percent of the TIPS market is owned by Pimco. Jeffrey Gundlach at DoubleLine says TIPS are a disaster and a trap because unless inflation rises, all you have is interest rate risk, just like every other Treasury – it is an asset class that is exposed
READ MORE... →Salient to Investors: Economists expect the US 10-year yields will be at 2.42 percent by Dec. 31. Kim Youngsung at Samsung Asset Mgmnt is still waiting to buy and said QE will be stopped in 2014. Read the full article at http://www.bloomberg.com/news/2013-07-03/u-s-yield-forecasts-rise-to-eight-month-high-on-fed-outlook.html Click here to receive free and immediate email alerts of the latest
READ MORE... →Salient to Investors: Economists at Bank of Tokyo-Mitsubishi UFJ, Barclays, Citigroup, Deutsche Bank, and UBS expect unemployment to fall to 7 percent in Q4 2013. Drew Matus at UBS Securities said the drop will pose more communication problems for the Fed, again of its own making. Matus said bond-market volatility will increase even
READ MORE... →Salient to Investors: TrimTabs Investment Research and the Money Fund Report report bond funds saw $61.7 billion of withdrawals last week. Market bears say yields barely exceed inflation, leaving little relative value in bonds as the global economy improves. Pimco, BlackRock, and DoubleLine Capital say the worst is over because the
READ MORE... →Salient to Investors: Binky Chadha at Deutsche Bank said the market had been pricing in that the Fed would normalize rates much more slowly than it has done historically, and the shock has spilled over across all of the asset classes. The World Bank said the world economy will expand 2.2 percent
READ MORE... →