NASRA: – Facts you should know! State/municipal bankruptcy, munibonds, state/local pensions. – Everything you need to know about state and municipal bankruptcy, municipal bonds as well as state and local pensions. Every munibond investor should read this.
Bloomberg: – Bridgewater bets on stocks and Eurobonds. – Bridgewater Associates LP, the $140 billion hedge fund founded by Ray Dalio, is wagering on global stocks and European bonds and betting against those in the US, Japan, UK and Australia, the firm’s chart shows. It’s bearish on emerging sovereign credit.
About.com: – Bond market data resources. – If you’re looking for stock market data and statistics, there’s almost no limit to the number of websites that provide this information. But if you need bond market data, you have to do a little more digging. With that in mind, here are some of the best free resources on the web for current and historical bond market data.
Barron’s: – Junk Bond covenant quality hits all-time low in January. – Here’s a familiar scenario for long-time market observers: as bond prices rise, the quality of those bonds often drops. This inverse relationship was in evidence again in January, when junk bond prices hit all-time highs while covenant protections hit all-time lows.
Learn Bonds: – The all weather portfolio – How Ray Dalio’s strategy works. – The All-Weather Portfolio is an investment philosophy developed by Ray Dalio and the name of fund offered by his hedge fund Bridgewater, one of the largest hedge funds in the world. However, you will also see detailed “all-weather” portfolios on many investing sites. These portfolios don’t mimic the “all-weather” fund offered by Bridgewater, whose exact investments remain secret, but invest based on the “all-weather” philosophy. So are these strategies any good?
Financial IceBerg: Junk bond ETF update – Early Warning Signs : Correction on Huge Volume
Market Oracle: – General public doesn’t quite understand bond market risks. – Goldman Sachs president and COO Gary Cohn tells Bloomberg’s Stephanie Ruhle that, “there is really only one way that interest rates can go over some period of time which is ultimately higher. I’m concerned that the general public does not quite understand the pricing of bonds and interest rates and the inverse correlation between the two.”
CNN Money: – How banks could get blown away by bond bubble. – A Federal Reserve governor is publicly raising concerns about a bond bubble, and he thinks banks could take a big hit.
ETF Trends: – High-Yield Bond ETFs: Too risky after big rally? – After garnering a huge following among yield-starved investors, speculative-grade corporate bond exchange traded funds have been weakening since January and are now testing their short-term trends.
Kiplinger: – Five steps to protect against a bear bond market. – Ever since 1981, bond yields have been falling, and bond prices, which move in the opposite direction of yields, have been rising. The result has been one of the greatest bull markets ever. Eventually, the bull market in bonds will come to an end. When? Who knows? But you need to prepare for its demise now.
Market Oracle: – US bond markets major top, yields poised to rise. – Our long term outlook for interest rates on US Treasury securities has been a contrary opinion for many years. Most commentators have been expecting either economic expansion or Fed-induced inflation to push bond yields higher. Conquer the Crash predicted that long term rates on AAA-rated bonds would fall much further as the monetary environment shifted form lessening inflation to outright deflation.
iStock Analyst: – Dangers lurking in the bond market. – The danger for bond investors is the decline in principal value that results from a rise in interest rates. Bonds are expected to be the stable value of ones investment portfolio; however, with rates as low as they are today, there isn’t much room for them to go to much lower.
Financial Post: – The Fed’s tricky QE3 escape. – Federal Reserve Chairman Ben S. Bernanke says the end of the central bank’s bond buying won’t constitute a move toward tighter policy. He may have a tough time convincing stock and bond investors that’s true.
Barron’s: – Is asset correlation down? Surprisingly, not so much. – The market’s volatility benchmarks were low in January. Fund flows were brisk. And the correlation of asset classes stayed off recent highs. But correlation wasn’t as low as you perhaps might expect.
Artemis: – The death of the total return swap in the cat bond market is almost upon us. –In December 2011 total return swaps accounted for 12% of outstanding cat bonds, today that number has been reduced to almost nothing. Why? Total return swaps make use of a counterparty acting as guarantor for the securitization collateral, often an investment bank. In 2008 the biggest guarantor of total returns swaps was Lehman Brothers, which left a number of cat bonds exposed to default as the guarantor had effectively disappeared. After that the market put its trust in other collateral solutions.
Douglas Albo: – No rotation in the Allianz/PIMCO funds. – If the rotation from fixed-income investments to equity investments is underway, you wouldn’t know it by looking at the Allianz/PIMCO family of high yielding closed-end funds (CEFs).
Yahoo Finance: – Do junk bonds still live in the best of both worlds? – The junk-bond market registered the economic upturn early, provided the juiciest returns as easy money floated through world markets and has led the stock market step by step to its recent five-year highs. So, what to make of the recent sharp decline in high-yield debt indexes from stupendously strong levels?
ETF Trends: – Mortgage REIT ETF yielding 12% starts year strong. – The search for yield has investors looking beyond bond and equity dividend ETFs, and into alternative income investment themes such as mortgage real estate investments trusts (REITs). Year-to-date inflows into real estate focused exchange traded funds and mutual funds combined are at about $4 billion. The iShares Mortgage REIT Capped ETF (NYSEArca: REM) has started 2013 with a 12% upswing.
HedgeWeek: – US fixed income fund managers see value in credit markets. – US fixed income fund managers continue to see value in the credit markets as a whole, although parts of it are deemed expensive, says S&P Capital IQ’s Fund Research in its latest sector trends paper.
Gross: G7 declares currency cease-fire but everyone knows inflationary bullets are flying. MXN, BRL favorite longs. GBP, JYS favorite shorts
— PIMCO (@PIMCO) February 12, 2013
Avg high-yield bond spread 5.3% to Treasuries, up by 0.4% from January lows. A fair level given low level of defaults.
— AnthonyValeri (@Anthony_Valeri) February 12, 2013
Grant: There Is No Yield In High Yield, There Is Only Junk #InsideETFs
— IndexUniverse (@IndexUniverse) February 12, 2013