Salient to Investors: Tomoya Masanao at Pimco said: Investors should be wary of high-yield borrowers as slowing growth in Asia threatens profitability. China will average 6 percent to 7.5 percent annual growth during the next 5 years versus 9 percent annual for the past 5. Companies in Asia outside Japan almost tripled junk bond sales
READ MORE... →Salient to Investors: Jim O’Neill said: The US is returning to normality so expect 10-yr T-yields to rise toward 4 percent in the next couple of years as the 30-year bull market in bonds comes to an end. There will be quite ugly days. The global economy is in the early stages of
READ MORE... →Salient to Investors: Daniel Friedman at UC at Santa Cruz and author Daniel McNeill write: Bailouts suggests to most laypeople gifts to a giant, inefficient, highly connected octopus, but they are typically investments – loans or purchases. The US bailout of Chrysler made a $660 million profit and the nation
READ MORE... →Salient to Investors: China approved 2 domestic ETPs backed by gold as global holdings of the precious metal in ETPs dropped to a 2-year low. Zhang Bingnan at the China Gold Association said Gold ETFs should boost gold demand as they make Chinese investments in the bullion much easier, and the recent
READ MORE... →Salient to Investors: Standard & Poor’s said: It increased the US’s AA+ credit rating outlook to stable from negative based on receding fiscal risks, and the US has a less than 1-in-3 likelihood of a downgrade in the near term due to tentative improvements like the deal to avoid the
READ MORE... →Salient to Investors: S&P said the U.S. has a less than 1-in-3 likelihood of a downgrade of its AA+ credit rating in the “near term”, and sees tentative improvements including the deal to avoid the fiscal cliff. Demand for Treasuries at auction has slackened amid signs of improvement with the
READ MORE... →Salient to Investors: Fareed Zakaria writes: The great American housing market is back. The American economy has again shown its core character of flexibility and resilience. The US is the only rich country in the world whose population is growing – by 3 million a year, mostly legal immigration. Americans
READ MORE... →Salient to Investors: Shen Jianguang at Mizuho Securities Asia said the May data will force China and the central bank to rethink growth and inflation as it seems they were too optimistic about growth and too concerned about inflation, and will be a test to see if they are determined
READ MORE... →Salient to Investors: Franklin Templeton Asset Mgmt (India) and Nomura Asset Mgmt predict rupee bonds will extend the longest run of gains in more than a decade as inflation below 5 percent adds room for interest-rate cuts. Nomura says easing price pressures will allow India to add to the most aggressive
READ MORE... →Salient to Investors: The economic expansion shows signs of lasting almost twice as long as average, with few of the excesses that often presage the start of contractions – inflation is slowing, not quickening, household debt is shrinking, not expanding, and the labor market is slack, not tight. Robert Gordon
READ MORE... →