Putin’s Sell-Treasuries-for-BRICS Bonds Plan Has Limits – Bloomberg 09-26-14

Salient to Investors: Richard Segal at Jefferies Intl said Russia’s reserves are too large relative to emerging-market dollar bonds so it will be difficult for it to stop buying US, European and Japanese bonds. Luis Costa at Citigroup said Russia’s bond-diversification plan sounds like posturing as the size of its sovereign-wealth

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Correlations Revive as China’s Slowdown Beats Rates – Bloomberg 09-26-14

Salient to Investors: China’s deepening slump is re-establishing the link between currencies and commodities, weakening the Australia dollar, New Zealand kiwi and Canadian loonie on concern their economies will slow and outweigh their relatively high interest rates. Shahab Jalinoos at Credit Suisse said you can only resist gravity for so

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BlackRock Buys Korea Stocks as Valuations Lure Foreigners – Bloomberg 09-26-14

Salient to Investors: Andrew Swan at BlackRock said: Blackrock has an overweight position in Korea stocks as a lot of negativity is already priced in and the market is so cheap. The South Korean equity market could be in the early stages of bottoming. A recovery in domestic demand may help

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Emerging Stocks Fall to Lowest Since May Amid U.S. Rate Concern – Bloomberg 09-25-14

Salient to Investors: Jonathan Garner at Morgan Stanley said the problems are more than just reaction to a Fed tightening, but include declining relative return on equity compared to developed markets. The Russian Micex is at 5 x estimated earnings, the cheapest in emerging markets. The MSCI Emerging Markets Index

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Dollar Rally to Gain Fuel as ECB Talks Stimulus, Goldman Says – Bloomberg 09-25-14

Salient to Investors: Robin Brooks at Goldman Sachs said: The dollar’s rise is small in historical and economic terms as many traders wait/hope for a pull-back which won’t come. Euro-dollar levels are not remotely pricing in the kind of balance sheet expansion that Draghi talked about in September, so future ECB press conferences

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Treasuries Gain on Demand for Yield Higher Than G-7 Peers – Bloomberg 09-25-14

Salient to Investors: 10-yr T-notes are at the widest yield gap, 0.89%, to their G-7 counterparts since June 2007. Charles Comiskey at Bank of Nova Scotia said people are being forced to buy Treasurys because both emerging-market currencies and stocks are getting hammered. Adrian Miller at GMP Securities said investors are bullish

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