Joe Weisenthal Puts the Smack Down on Jeff Nielsen…and More!


The Street: Who’s Propping Up the U.S. Treasury Market? - Jeff Nielsen’s conspiracy laden report where he claims the Fed is illegally counterfeiting money to prop up the treasury market.

Business Insider: Why Treasury Yields aren’t Higher Despite Record Deficits - Joe Weisenthal’s blistering retort which is summed up here: So you don’t need evil Bernanke in the back room printing up dollars. It’s the dollars that the government is spending that match the Treasury issuance. Mystery solved.

MorningStar: The Top Worry to Come Out of the MorningStar Investors Conference? Treasuries. - Accepting what will almost certainly be a negative real return during the next decade just didn’t make sense to most speakers at the conference. Franklin Templeton’s Michael Hasenstab might have said it best when he described Treasuries as a risk-free asset no more.

FT: Treasuries are the New Gold - US Treasury securities (and other high-quality debt) became zero-yielding, meaning these sorts of bonds began to rank pari passu with gold as a store of value.

Learn Bonds: High Yield Bonds: Fixed Income or Equity?  - Why they take issue with the consensus that high yield is a bond allocation.

Bond Squawk: Copper Prices May Signal Lower Bond Yields - If copper either continues to decline or maintains its current level and the correlation holds to its historical norm, then inflation expectations should decline with a drop in U.S. Treasury nominal yields. In other words, higher quality bonds could trade even higher.

NY Times: Local Taxpayers are Getting Stuck with Bond Debt - Data from Thomson Reuters suggests that local taxpayers are backing so-called enterprise debt at five times the rate they did 10 years ago.  Surprised local taxpayers from Stockton, Calif., to Scranton, Pa., are finding themselves obligated for parking garages, hockey arenas and other enterprises that can no longer pay their debts.

Blackrock: What Should I do with My Money? - Beware the Risks in Risk-Free.  Modestly Overweight Equities. Munis Remain Attractive.

Smart Money: The New Case for Corporate Bonds - So far in 2011, bonds have lagged behind stocks. But the goal is to hold these bonds for a few years and pocket each interest payment, managers say. Investment-grade corporate bonds have yields that are well above those of corresponding Treasurys.

Reuters: Portman Tax Plan Would be Bad for Corporate Bond Market - Under corporate tax law, interest paid on debt is tax deductible, a feature of the U.S. tax code that is often abused and that critics say unwisely favors debt over equity. Portman wants to change that.

Bond Buyer: Despite Fears, Many Muni Credits Are Stable to BetterEven though some municipal credits are on shaky ground, local and state finances are generally improving, according to the latest data compiled by McDonnell Investment Management LLC.

Alliance Bernstein: Strategies to Cut Interest Rate Risk in the Muni Market - Shorten duration and increase credit risk is their recomendation.  

MarketWatch: Low rates to spur $365 bln in muni bond issuesRBC Capital Markets expects municipal bond issuance to rise to 123% of last year’s volume, to $365 billion, helped by low interest rates.

FT: Financials in Tech Battle over Bond Trading - Convinced that corporate bonds and other fixed income securities are destined to trade electronically on big open exchanges in a similar way to stocks, some large financial firms are attempting to shape the new market structure in their favour.

Bloomberg: Bond Traders Shunning Freddie Costs Taxpayers The bond market is telling Freddie Mac it’s not wanted even as taxpayers support two similar mortgage-finance companies.

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