Salient to Investors: Concern is rising that the Fed will curtail unprecedented stimulus while debt investors are becoming more discriminating Jody Lurie at Janney Montgomery Scott said the last year was an issuer’s market but the tables have turned as borrowers now listen to the demands of investors. Eric Beinstein at JPMorgan
READ MORE... →Salient to Investors: Eric Viloria at Gain Capital said expectations of QE tapering is positive for the US dollar because it means a slowing in the expansion of the Fed balance sheet. Alan Ruskin at Deutsche Bank said the tapering story is very much in play, and the employment data suggests
READ MORE... →Salient to Investors: Bill Gross at Pimco said: The Fed will not taper with unemployment rising to 7.6 percent and very dire metrics for the average work week and wages, but a more normal economy requires the Fed to raise interest rates to more normal levels because QE and low interest rates are distorting capital
READ MORE... →Salient to Investors: Freddie Mac said the average 30-yr fixed-rate mortgage is at 3.91% versus 3.3% in early May. Doug Duncan at Fannie Mae said it is unlikely that rates will ever be that low again because when QE ends, private investors will demand higher rates for borrowers. The Fed will stop
READ MORE... →Salient to Investors: The S&P GSCI Spot Index has lagged the MSCI All-Country World Index for 6 months, the longest stretch since 1998. Hedge funds cut combined bullish bets across 18 US raw-material futures by 51 percent from a 16-month high in September and are bearish on 6 of them. EPFR Global
READ MORE... →Salient to Investors: Kian Abouhossein et al at J.P. Morgan Cazenove said: The emerging market sell-off sparked by speculation of reduced Fed stimulus may cause a material slowdown in emerging market fixed-income revenues with volumes drying up. December is most likely for the first tapering by the Fed, but if the labor
READ MORE... →Salient to Investors: Hitoshi Asaoka at Mizuho Trust & Banking expects the yen to weaken, saying should the Fed reduce stimulus, US Treasury yields will rise and the currencies of countries easing monetary policy will be sold and those of nations tightening will be bought. Steve Brice at Standard Chartered thinks
READ MORE... →Salient to Investors: Luca Jellinek at Credit Agricole said investors should not turn positive on US Treasuries as fixed-income investors will remain obsessed with the Fed taper. Read the full article at http://www.bloomberg.com/news/2013-06-06/don-t-become-bullish-on-treasuries-now-credit-agricole-says.html Click here to receive free and immediate email alerts of the latest forecasts.
READ MORE... →Salient to Investors: The term “he cha” in Chinese, literally meaning to drink tea, is a euphemism for the informal interrogation of citizens deemed to have stepped out of line. Accounts of such conversations have proliferated online, describing how police use the talks to try to suppress activities that are considered
READ MORE... →Salient to Investors: Richard Fisher at FRB of Dallas sees the end of a 30-year rally in bonds so the Fed should taper QE with housing in good shape, construction has resumed, and housing prices are appreciating significantly. Fisher said the market has begun to discount that this will not go on forever. Esther
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