Salient to Investors: Mohamed El-Erian at Pimco said: The global economy will expand 2.75 percent to 3.25 percent in 2014. The big question is less the next 12 months and more what comes after, given we are being sustained by experimental, untested policies. The US and Japan have outperformed other
READ MORE... →Salient to Investors: Traders do not expect the Fed to raise interest rates until 9 months after ending QE, or late 2015. Gregory Whiteley at DoubleLine Capital said a fed funds increase on the heels of that last QE purchase is no longer the consensus. Joe Ramos at Lazard Asset
READ MORE... →Salient to Investors: Disruptions to the economy prompted speculation the Fed would maintain the pace of its $85 billion in monthly bond purchases. BlackRock Inc. and Pacific Investment Management Co. say the Fed will postpone tapering as a result of the debt-ceiling debate. Russ Koesterich at BlackRock said the disruption
READ MORE... →Salient to Investors: Little more than 2 years after Warren Buffett labeled India a “dream market,” its economy is expanding at the slowest pace in a decade and its debt ratings are at risk of being cut to junk. Berkshire Hathaway exited an insurance distribution venture. In the last 3
READ MORE... →Salient to Investors: Saumil Parikh at Pimco said: Global growth will increase to 2.25 percent to 2.75 percent through September of 2014 as US and European policy won’t hamper growth as much as in the past, private sector confidence strengthens as global wealth increases, and central banks use monetary policy
READ MORE... →Salient to Investors: Marco Oviedo at Barclays said teacher protests are a sign that President Nieto may struggle to push through his energy and tax-law plans without modification. Oviedo said education reform shows that it won’t be easy to pass other reforms that hurt certain political groups or interests. Opposition to Nieto’s pledges
READ MORE... →Salient to Investors: Money managers are betting that bond funds that are unconstrained by duration, strategy or region will attract money as interest rates rise and investors shift assets from traditional fixed-income offerings, which are limited in how they can react to falling bond markets. Unconstrained funds generally can increase in value
READ MORE... →Salient to Investors: Adam Bowe at Pimco said: Australian bonds are attractive after their worst run of losses since 1994 because the central bank will need to lower interest rates as mining investment drops. Pimco prefers to hold Aussie government bonds and high-quality spread assets like swap in the belief that interest
READ MORE... →Salient to Investors: Morningstar says 10 percent of the TIPS market is owned by Pimco. Jeffrey Gundlach at DoubleLine says TIPS are a disaster and a trap because unless inflation rises, all you have is interest rate risk, just like every other Treasury – it is an asset class that is exposed
READ MORE... →Salient to Investors: Cecilia Gondor at Thomas J. Herzfeld Advisors said closed-end funds have sold off since May due to concern that the underlying value of the bonds they hold will suffer should the Fed taper QE. Gondor said retail investors looking for income gravitated to the Pimco funds because they see Bill
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