Salient to Investors: Ira Jersey at Credit Suisse said a modest uptick in inflation, but not a crazy uptick, gives the Fed more leeway by showing it their policies seem to be working. Bill Gross at Pimco said the Fed may halt bond buying in January 2014, depending on the pace of the
READ MORE... →Salient to Investors: Mark Andersen at UBS said the FOMC minutes may have started an adjustment process for the markets, with realism setting in with investors. Anderson said you can’t have both stronger growth and ever-expanding balance sheets at central banks, so their members are starting to consider the longer-term
READ MORE... →Salient to Investors: Aaron Kohli at BNP Paribas said that until the economy improves, the Fed will err on the side of easing. Bill Gross at Pimco said the Fed minutes suggest continued Fed purchases are at risk if the economy improves. Will Tseng at Mirae Asset cites bearish momentum in the Treasury market as
READ MORE... →Salient to Investors: Michael Hanson at Bank of America said a gradual reduction in Fed purchases may win the FOMC’s support because it gives policy makers flexibility, and the minutes show tapering is a likely outcome at some point in the future. Hanson said tapering the purchases allows the Fed to calibrate
READ MORE... →Salient to Investors: Junk bonds of companies in emerging markets are the most expensive in 7 years relative to the US, raising concerns the threat of asset bubbles is increasing. Emerging market businesses have been adding debt even as profit growth slows and borrowing costs stop tumbling. JPMorgan said funds investing in
READ MORE... →Salient to Investors: OMB predicts yields on 10-yr Treasuries will rise to average 4.1 percent in 2015 and 4.9 percent in 2017 as the economy expands at a 4 percent rate in half2 of Obama’s term. The bond market indicates the yield will average below 3 percent two years from now,
READ MORE... →Salient to Investors: Salman Niaz at Goldman Sachs Asset Mgmt said: Macau casino bonds will withstand any crackdown aimed at cleaning up the industry. Previous cooling and policy measures have generally been positive to the long-term health of the market, and the high free-cash flow generated by operators and limited leverage
READ MORE... →Salient to Investors: Ian Lyngen at CRT Capital said the data suggests the recovery continues to edge along. Investors continue to buy US government debt as a refuge against a renewal of turmoil in global financial markets and concern the US recovery may falter. Thomas di Galoma at Navigate Advisors said anytime
READ MORE... →Salient to Investors: As high-yield ETFs suffer unprecedented withdrawals, the combined value of the 5 biggest fell 7 percent in January. Peter Tchir at TF Market Advisors said a pullback 3 times bigger than for mutual funds suggests hedge funds et al are cherry picking rather than investing in the broader market. Tchir said
READ MORE... →Salient to Investors: Caroline Baum writes: The Fed buys risk-free Treasury securities, depressing yields, while the public is goaded into buying riskier assets, such as stocks and corporate bonds. Businesses financing with equity have more money to invest, while consumers feel wealthier and spend. quick paydayloan The Fed hopes money will
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