Salient to Investors: Credit-derivatives traders are being replaced by machines as automated trading makes humans too expensive. Michael Karp at Options Group said that as late as 2005, managing directors on credit-derivative trading desks were being paid an average $250,000 in salaries and $1.75 million in bonuses. Peter Tchir at TF Market Advisors said
READ MORE... →Salient to Investors: Pimco is the biggest holder of peso bonds. get loads of money Bank of America says that a Romney win could spark a selloff in Treasuries that will be mirrored in Mexican notes, the most correlated to US government bonds of any debt in Latin America. Kevin Daly at Aberdeen Asset
READ MORE... →Salient to Investors: Investors can’t get enough government securities even though rising debt loads are blamed for curbing global growth. For the first time since 2008, all 26 markets tracked by Bloomberg and the EFFAS are poised to generate positive returns on an annual basis. Governments are getting a handle
READ MORE... →Salient to Investors: FRB San Francisco President John Williams said: The Fed should continue the MBS purchases into next year and continue the Treasury purchases because we have not seen a sustained, significant improvement in the labor market, such as payrolls growth more than 200,000 jobs a month or a measurable decline in
READ MORE... →Salient to Investors: Michael Althof at Pimco said: Pimco favors inflation protection in Australia and the US as global stimulus stokes faster price increases. Central banks are more willing to risk inflation as a trade-off for growth and employment, and pressure for higher inflation longer-term makes index-linked bonds attractive. Pimco likes Australian bonds
READ MORE... →Salient to Investors: Bill Gross at Pimco said the Fed can do nothing but continue its accommodative monetary policies even with the U.S. economy adding more jobs than forecast last month. Pimco bought Spanish and Italian bonds on speculation that Draghi will come to the rescue. Mohamed El-Erian at Pimco said
READ MORE... →Salient to Investors: Graham Bishop at Exane BNP Paribas said equities will advance in 2013 as investors who missed this year’s gains try to chase the rally, driven by a reversal of investor pessimism, near-zero US interest rates, accelerating economic growth, and favorable market valuations. Bishop said this phase of the cycle supports a strong
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Investment is not being incentivized by QE. Lower interest rates are being used to consume as opposed to invest, and the money created and freed up is elevating asset prices, but corporations are not investing in future production. Asset and currency prices ultimately rest on economic growth, so
READ MORE... →Salient to Investors: Gary Shilling at A. Gary Shilling & Co writes: Investors’ zeal for yield has: Depressed yields and spreads of below-investment-grade debt versus Treasuries so much that it now takes real skill to default. The global recession will hype defaults even though many low-rated companies have a cushion of safety from
READ MORE... →Salient to Investors: Asian currencies strengthened for a fifth month on signs of a pickup in China, where industrial output, retail sales and fixed-asset investment gathered pace in September. Tsutomu Soma at Rakuten Securities said funds are flowing into Asia. EPFR Global said emerging-market bond funds attracted $44.2 billion this year through Oct. 24 versus $15.9
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