Salient to Investors: Frederic Neumann at HSBC said: Asia’s growth has just downshifted to a less spectacular pace in coming years. Asia’s 1997 financial crisis won’t repeat as dissimilarities outweigh the parallels. Current account positions are mostly in surplus, which should cushion the blow from an outflow of capital, and banking systems
READ MORE... →Salient to Investors: Bond managers are telling investors the worst may be over for T-bonds after 10-year yields rose to a 22-month high. Jeffrey Gundlach at DoubleLine Capital says July will not be the same type of month and 10-yr yields will be meaningfully lower by the end of 2013 Gundlach said
READ MORE... →Salient to Investors: Freddie Mac said the average rate for a 30-yr fixed mortgage rose to 4.46 percent from 3.93 percent, the biggest one-week increase since 1987. The average 15-yr rate climbed to 3.5 percent from 3.04 percent. The average rate for a 30-yr mortgage in the 10 years through last
READ MORE... →Salient to Investors: Moody’s Investors Service the total funded ratio – assets relative to liabilities – of state pensions fell to 48 percent under its new methodology from 74 percent before the changes. The ratio measures fund management and whether a state is keeping up with promises to retirees. Moody’s said
READ MORE... →Salient to Investors: Jeffrey Lacker at FRB of Richmond said: The Fed is not close to tapering QE and expects 2 more years of sluggish growth, and 2.25 percent growth in 2014. The Fed will not alter their guidance about tapering based on GDP, focusing instead on jobs. Markets are better aligned now
READ MORE... →Salient to Investors: Richard Stern at TrimTabs Investment Research said investors withdrew $52.8 billion from bond mutual funds and $8.9 billion from ETFs in June through June 24 . David Santschi at TrimTabs said before June, bond funds posted inflows for 21 consecutive months. Individual investors typically own bonds through mutual funds while
READ MORE... →Salient to Investors: Justin Wolfers at University of Michigan writes: Jan Hatzius at Goldman Sachs estimates that it takes $1 trillion in bond purchases to move long-term interest rates by 0.4 percent. So the market’s recent overreaction to Benanke’s tapering comments is equivalent to cutting back on QE by $1 trillion versus $255
READ MORE... →Salient to Investors: John Kilduff at Again Capital said the terrible GDP number gives the Fed room to continue QE and there won’t be a tapering anytime soon. balance these Read the full article at http://www.bloomberg.com/news/2013-06-26/wti-crude-rises-on-speculation-fed-to-keep-stimulus.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: Caroline Baum writes: The Wall Street Journal’s Jon Hilsenrath is widely viewed as Bernanke’s unofficial spokesman. Bernanke was crystal clear when he communicated the Fed’s objectives. The rise in interest rates can be easily overwhelmed by better earnings as a result of stronger growth, so if the Fed’s optimistic
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Bond yields and risk spreads were too low 2 months ago and global markets that were too leveraged are now reducing risk The Fed tilted over-risked investors to one side of an overloaded and over-levered boat when discussing tapering, so don’t panic.
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