Salient to Investors: Owen Murfin at BlackRock said: Bond investors have been too hasty to bet the ECB will buy sovereign debt The ECB’s target of increasing its balance sheet by $1.29 trillion is ambitious and the poor take-up of new cheap loans offered to banks is no guarantee of QE –
READ MORE... →Salient to Investors: BlackRock said: The corporate bond market is broken and needs improved liquidity. Corporations should be encouraged to issue debt with more standardized terms. The dangers of price gaps and scant liquidity have been masked in a benign, low interest-rate environment. New rules prompted Wall Street bond dealers
READ MORE... →Salient to Investors: Philip Moffitt at Goldman Sachs Asset Mgmt said: The 10-year T-yield may rise to as high as 4% over 12 months as the end of QE and beginning of quantitative tightening adds more interest-rate risk to the market as reinvesting coupons alone will not be enough to offset
READ MORE... →Salient to Investors: Julian Robertson at Tiger Mgmt said bonds are at ridiculous bubble levels as governments worldwide buy bonds to keep their countries growing. Robertson said the bond bubble will end very badly but is finding equity opportunities in great companies, like Alibaba. Leon Cooperman at Omega Advisors said
READ MORE... →Salient to Investors: JC O’Hara at FBN Securities said the spread between the Russell and S&P 500 is widening again and worrying traders who want to see small caps participate.” Jonathan Krinsky at MKM Partners sees a good chance of US equities declining modestly into early October, citing deteriorating breadth and seasonal weakness.
READ MORE... →Salient to Investors: Adam Buchanan at Ziegler said the muni supply and the other rate pressures will have an effect, and buyers will try to get better rates. Lipper US Fund Flows data show that individuals have poured $8.3 billion into muni mutual funds in 2014, the most since 2012. Phil Fischer at
READ MORE... →Salient to Investors: The $1 trilli0n unregulated market for leveraged corporate loans – from $35 billion in 1997 – poses a growing threat of gridlock in a downturn when investors expect to get their money back. Beth MacLean at Pimco said one single retail fund unable to meet redemptions would have a
READ MORE... →Salient to Investors: Moody’s Investors Service said the US Aaa credit rating outlook remains stable, short-term outlooks for most indicators are positive, but spending on social programs will put pressure on budget deficits and the rating toward the end of the decade. Steven Hess at Moody’s sees accelerating economic growth as
READ MORE... →Salient to Investors: The shares outstanding in iShares TIPS Bond ETF exceeded those of the FlexShares iBoxx 3-Year Target Duration TIPS Index ETF by the lowest on record, indicating investors are betting the Fed will achieve its price-stability goals. Overall inflows to ETFs tracking US inflation in 2014 are at
READ MORE... →Salient to Investors: 74 percent of 34 analysts expect wage growth to begin to outpace inflation on a sustainable basis in Q2, 2015 or later. Rob Wood at Berenberg Bank said real wages will start to grow in half1 2015 but it will be several years before we get back to
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