QE3 – 2 Reasons its different this time….Bond Trading Looses Swagger…and more!

Best of the Bond Market for July 25th, 2012 

Economic Musings: QE3 – 2 reasons why it’s different this time – Despite Chairman Bernanke profession that “additional tools” remain in play, I believe we will see additional large scale asset purchases “LSAP’s” in the form of Agency Mortgage Backed Securities.  What will this accomplish and how is it different than last time?

NY Times: Bond trading loses some swagger amid upheaval – Tighter regulations being enacted this year and new electronic trading technology being rushed to market are threatening to permanently constrain this bastion of big bonuses and risk-taking.

The Miami Herald: SEC says Miami mislead investors in $100’s of millions in muni bonds – The letter did not state which bond issues are targeted, but people familiar with the investigation told The Miami Herald the sales occurred between 2007 and 2009. The agency said it may file a lawsuit seeking civil fines or a cease-and-desist order against the city.

CNBC: PIMCO’s El Erian says low rates are not enough – What the world economy needs today is a coordinated set of measures to promote growth, allocate financial losses, match healthy balance sheet with those that are challenged and reforming, and improve the functioning of the labor and housing markets.

Learn Bonds: 3 things to consider when buying premium bonds – 1. Coupon payment will be higher than yield 2. call provisions are important.  3. How premium bonds are taxed.

WSJ: Top emerging market bonds becoming higher yielding havens – As concerns have risen about the euro-zone debt crisis and waning global growth, dollar-denominated sovereign debt from places such as Mexico and Brazil has traded more or less in lockstep with U.S. government bonds.

WSJ: QE3 rumors intensify yet again – Central bank officials could take new steps at their meeting next week, July 31 and Aug. 1, though they might wait until their September meeting to accumulate more information on the pace of growth and job gains before deciding whether to act.

BusinessWeek: Radio Shack Bonds continue drop after $21 Million Q2 Loss – RadioShack’s $324.8 million of 6.75 percent bonds maturing in May 2019 dropped 8 cents to 66.5 cents on the dollar at 11:07 a.m. in New York.  They’ve fallen from 90.25 cents in January.

David Zanoni: 5 Quality-Rated Tax-Free Municipal Bond ETFs – a list of the highly-rated bond ETFs with credit ratings concentrated primarily with AAA, AA, and A.

Crossing Wall Street: 20 Year TIPS are now negative – not just the 10 year anymore.

The Financial Lexicon: 3 bonds to consider yielding between 5 and 7%.

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