Salient to Investors: Professor Frederic Mishkin at Columbia Business School said the Fed has helped save the world. William Dudley at FRB of New York said: The force with which Bernanke has attacked joblessness has distinguished him, and his legacy is in being very creative and aggressive in an adverse economic environment. It’s OK
READ MORE... →Salient to Investors: Lower-rated issuers are benefiting as sinking yields spur investors to stomach more risk. Debt sold by Illinois issuers is rallying the most in 20 months despite a warning that the state’s pensions may run out of money and drain funding from education, infrastructure and local aid. Moody’s
READ MORE... →Salient to Investors: Mark Dowding at BlueBay Asset Mgmt said investors should sell government bonds from the euro-region’s periphery, including Spain and Italy, because of a complacency on the part of policy makers, complacency in Spain, and no progress in sight. Dowding sees rising political risk in Italy. Read thef ull article at
READ MORE... →Salient to Investors: Jim Goff at Janus writes: Only invest money you won’t need for five to 10 years, set it and forget it. Australia has the best such plan with its mandatory retirement fund contributions of 9% of salary – assets now exceed Australian GDP and the Australian stock market. Bad headlines are the
READ MORE... →Salient to Investors: Mercenary Trader writes: The routine intervention of the Central Banks, the Greenspan Put transitioning to the Bernanke Put, have underscored the “bad news is good news” phenomenon. Good news is good news because things are getting better. Mediocre news is good news because it means CBs keep rates near
READ MORE... →Salient to Investors: Albert Sung at Katchum Macro-Economic Blog writes: The Fed can print money but can’t control where it goes. Money is now flowing into Asia – Thailand, Indonesia, Hong Kong, Shanghai, Australia are at new highs, while the Hong Kong and Shanghai real estate markets are making new highs. Asian real estate developers in
READ MORE... →Salient to Investors: Citigroup sees banks getting increasingly involved in collateralized loan obligations for higher returns on capital. CLO issuance has more than tripled in 2012 to a more than five-year high. The U.S. two-year interest-rate swap spread, a measure of debt market stress, touched 8 basis points on Oct. 17, the
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Structural headwinds in terms of economic growth, the budget deficit, and the fiscal cliff will dominate the economic debate no matter who wins the election – meaning lower growth due to the excessive debt and leverage built up over 10 or 20 years. Future annual
READ MORE... →Salient to Investors: Roger Bridges at Tyndall Investment Mgmt sees no value in Treasuries – growth is not as bad as expected. Economists expect 10-year yields at 1.77 percent at year-end and 2.06 percent by 6-30-13. All 21 primary dealers expect the Fed to expand stimulus measures before year-end. Guy LeBas at Janney
READ MORE... →Salient to Investors: The days of instant rewards from the stock market are over. Larry Fink at Blackrock says be 100% in equities, prefers stocks to bonds. Bill Gross at Pimco says the cult of equities is dead but sees stocks offering double the nominal return of bonds over the next several
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