Best of the Bond Market for September 7th, 2012
Cate Long: – Calling out NYT’s Mary Williams on Stockton pension obligation bond piece – Apparently the Williams should have done a little more research.
Bloomberg: – Goldman sued over mortgage bonds. – German bank DZ Bank AG is suing Goldman Sachs over the purchase of sub prime mortgage bonds. DZ Bank claim that Goldman both misrepresented and omitted key information regarding the underwriting standards used to issue the said loans.
ETF Trends: PIMCO’s BOND ETF is still crushing the Total Return Fund – From March 1 through Aug. 27, the ETF returned nearly 8.4% compared with 4.5% for the Total Return Fund.
WSJ: Morgan Stanley and Goldman Sach’s Bonds are significantly outperforming their stocks – MS stock down 37% in last 2 years 10 year bonds up 12.1%. GS stock down 19.3% 10 year bonds up 13%.
Bond Squawk: – Housing gains should help property tax revenues reverse. – Recent data releases suggest that housing may have finally bottomed and a turnaround is near. Historical low interest rates coupled with a dwindling of the current stock of housing in inventory has contributed to the reversal.
ThomsonReuters: – NY Nassau County may tap private funds for tax refunds. – New York’s cash-strapped Nassau County is considering borrowing from private investors to raise as much as $150 million to pay court-ordered property tax refunds, an attorney briefed on the plan said on Thursday.
WSJ: Weak jobs report increases likelihood of further Fed action – The weak jobs report increases the likelihood that the Federal Reserve will launch an easing program at the conclusion of its policy meeting next week, including a new bond-buying program.
Learn Bonds: – How to trade corporate bonds with E*Trade. – Trading corporate bonds is not like trading stocks. Bond trading technology and access has not developed as quickly as other markets. Electronic platforms with real time quotes which are the standard in other markets are the exception in the bond market.
About.com: August 2012 and Year to Date Bond Market Returns – Emerging market bonds crush the pack with a 12.14% return year to date.
Sacramento Bee: – California pension reforms will help – question is when? – Sweeping public pension legislation approved last week will change the relationship between thousands of California governments and their workers, but local officials are still figuring out the long-term outcome for taxpayers.
New Jersey: – Surprise profit at Hovnanian helping Red Bank-based homebuilder recover – Hovnanian Enterprises Inc., the homebuilder that faced a 91 percent chance of default last October as seen in derivatives trades, is winning over bondholders by reducing debt as housing prices improve.
Reuters: ECB action could dampen demand for investment grade bonds – Moves by the Fed and the ECB to ramp up liquidity would boost the risk-on trade, driving investment flows towards riskier but better-yielding assets and away from investment-grade paper, which is currently offering meager yields.