Salient to Investors: Foreign investors poured a record $7.36 billion into Mexican debt securities in 2012 to take advantage of economic growth that is four times Brazil’s and yields that are still triple those for US Treasuries. Luis de la Cerda at Afore Sura said foreigners won’t leave the bonds and are here
READ MORE... →Salient to Investors: New York Fed President William Dudley said the gap between bond yields and home-loan rates is blunting the economic benefits of the Fed’s record accommodation. Stephen Stanley at Pierpont Securities said banks are disinclined to lower mortgage rates. David Cannon at Royal Bank of Scotland said banks are reluctant to hire
READ MORE... →Salient to Investors: Americans have missed $200 billion of stock gains by draining money from the market in the past 4 years. Since the bull market began in March 2009, the proportion of retirement funds in stocks fell 0.5 percent versus the average rise of 8.2 percent in rallies since 1990. ICI
READ MORE... →Salient to Investors: UK inflation-protected bonds are poised for their worst year in more than a decade as government proposals to change the way it calculates a gauge of retail prices threaten to lower payments on the debt. Capital Economics said a recalculation of inflation indexes may save the government 7
READ MORE... →Salient to Investors: The median economist expects Australia’s government bonds to beat Treasuries for a third year in 2013 Robert Mead at Pimco said the new normal is finally catching up with the Australian economy – the RBA will keep Australian interest rates low. Mead strongly recommends Aussie bonds as an
READ MORE... →Salient to Investors: Brokers and dealers cut their inventory of US muni bonds in Q3 to the least since Q1 2004. Investor demand for munis has faltered. Investors are looking to unload more than $1 billion of the debt, the most in two years. David Manges at BNY Mellon Capital Market said investors are
READ MORE... →Salient to Investors: Yields on sovereign securities moved in the opposite direction from what ratings suggested in 53 percent of the 32 upgrades, downgrades and changes in credit outlook in 2013, versus the longer-term average of 47 percent of over 300 changes since 1974. The IMF reported in January 2012 that prices
READ MORE... →Salient to Investors: Corporate bond sales are $3.9 trillion in 2012 versus $3.29 trillion in 2011 and $3.23 trillion in 2010, and the previous all-time high of $3.89 trillion in 2009. EPFR Global report a record $455.7 billion has flowed into bond funds in 2012. Corporate bonds returned 11.5 percent in 2012 versus 4.86 percent in
READ MORE... →Salient to Investors: Peter Oppenheimer at Goldman Sachs said: Quantitative easings have left little value in the credit markets, so investors should look for returns in European equities over bonds. The STOXX Europe 600 could see annual returns of more than 7 percent despite stagnation in the euro area. Because of a net absence
READ MORE... →Salient to Investors: Bill Gross at Pimco cut mortgage bonds to 44 percent of assets, to the lowest level in 12 months. Read the full article at http://www.bloomberg.com/news/2012-12-12/gross-sells-mortgage-debt-after-fed-buying-cuts-yield.html
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