Salient to Investors: Larry Milstein at R.W. Pressprich does not know if we ar getting bang for the buck in economic improvement, but says there is clearly improvement, but nothing yet to make the Fed take its foot off the gas. Michael Pond at Barclays said the rise in yields has
READ MORE... →Salient to Investors: Bill Gross at Pimco doubled his forecast for growth in US GDP to 3 percent for 2013 partly because of housing, and a nominal growth rate of 5 percent. Gross said 200,000 jobs is consistent with real GDP growth of 3 percent in 2013 and won’t prompt the Fed
READ MORE... →Salient to Investors: Omer Esiner at Commonwealth Foreign Exchange says a growing list of economic indicators suggest a broad-based recovery, and the market is focusing on the US recovery gaining steam, while other major economies remain in stagnation and contraction. Richard Franulovich at Westpac Banking said risk appetite is firming and we are in a potentially momentous
READ MORE... →Salient to Investors: Bank of America Merrill Lynch’s MOVE Index signal that the zero to 0.25 percent range won’t increase for more than 2 years, a bullish sign for bonds. Krishna Memani at OppenheimerFunds said the Fed has been very articulate about the direction of short-term rates, which is entirely data
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Asset-price irrationality has risen to 6 on a scale of 1 to 10. Corporate credit and high yield bonds are somewhat exuberantly and irrationally priced, spreads are tight, profit margins are at record peaks with room to fall, and the economy is still fragile.
READ MORE... →Salient to Investors: Bank of America Merrill Lynch indexes show the gap in yields between linkers and governments reached a 21-month high of 1.70 percent. Economists forecast consumer-price gains of 2.72 percent in 2013, in line with the 10-year average. Index-linked securities are favored because sovereign-debt returns are being erased
READ MORE... →Salient to Investors: Bill Gross at Pimco said: Treasuries gained this week for the wrong reason – speculation economic growth will slow as the Fed reduces its stimulus efforts, when instead yields, certainly in the mortgage market, and the Treasury market might rise as well. The Fed will buys bonds through 2013 and says
READ MORE... →Salient to Investors: Ira Jersey at Credit Suisse said a modest uptick in inflation, but not a crazy uptick, gives the Fed more leeway by showing it their policies seem to be working. Bill Gross at Pimco said the Fed may halt bond buying in January 2014, depending on the pace of the
READ MORE... →Salient to Investors: Aaron Kohli at BNP Paribas said that until the economy improves, the Fed will err on the side of easing. Bill Gross at Pimco said the Fed minutes suggest continued Fed purchases are at risk if the economy improves. Will Tseng at Mirae Asset cites bearish momentum in the Treasury market as
READ MORE... →Salient to Investors: Steven Logan at Scottish Widows Investment Partnership said it’s not unhealthy for the bond market to have a reality check after a slightly chaotic spell of issuance with far too many transactions. Bill Gross at Pimco said investors should position for the end stage of a supernova credit explosion
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