Best of the Bond Market for July 26th, 2012
Business Insider: Ben Duronio Calls out Zero Hedge and 20 other so called experts – who have been saying rates have “no where to go but up” for years as rates continue to fall.
The Aleph Blog: 4 things every bond investor should know. – Invest in areas where you are more than adequately compensated for the risks. Try to be as unconstrained as possible. After a credit crash, wait for the momentum to return to credit, and pile on. During a time of debt deflation, be willing to hold long-duration high quality debts.
Asset Allocation News: Morgan Stanley’s 12 key investment themes for the rest of 2012 – including their fixed income recommendations about where to be over and underweight.
Learn Bonds: Do TIPS actually protect against inflation? not as well as one might think.
Real Clear Markets: California is ground zero for municipal bankruptcies – Debates about the role of government are shifting from libraries and lecture halls to kitchen tables and coffee shops as municipal bankruptcies flare up across the country. And California is ground zero.
Blackrock: The 4 dimensions of an income oriented portfolio – current yield, yield growth, capital stability, capital growth.
Marketwatch: One fed tool that gives Wall St. heartburn. – Wall Street is enthusiastic about the prospect of more Federal Reserve easing but want the central bank to jettison one tool: reducing the interest rates paid to banks for reserves they park at the Fed.
YAHOO Finance: Ron Paul’s audit the fed bill passes the house with overwhelming support – The House of Representatives on Wednesday overwhelmingly approved the Texas Republican’s bill to increase the transparency of the Federal Reserve. With bipartisan support, the measure passed 327-98. One Republican, Rep. Bob Turner of New York, joined 97 Democrats in voting against it.
In the Money Stocks: Is the bond market calling ECB President Draghi’s bluff? Mario Draghi comments have caused a massive rally in the stock markets this morning. However, the TLT bond etf is only down $.58.
Top Stock Analysts: The guide to international bond ETF investing. The recent ‘risk off’ environment has led the investors to flee from the risky asset classes and seek solace in the so-called safer bond segment. However, this trend has led to plummeting U.S. Treasury rates to near all time lows, forcing many investors to seek yield in other corners of the market.\
Stewardship Matters: Bond interest rate risk is currently red. – Why Red? Because we have not had bond interest rates this low in the last 60 years, and this is not good news for investors in the bond market. What will happen when interest rates increase in the next couple of years?
Five Cent Nickel: Should you hold individual bonds or bond funds? – it depends on your situation.
Gross: Spanish yields drop 50 basis on #Draghi. No matter. They need 400 basis more to remain solvent longer term.
— PIMCO (@PIMCO) July 26, 2012
More of the same for the MuniMkt as yields grind lower. New issuance was light though well received as vols were flat from Tues. #munimarket
— BondDesk Group LLC (@BondDesk) July 26, 2012