To get the Best of the Bond Market delivered to your email daily click here.
PIMCO: – Bill Gross Investment Outlook: There will be haircuts. – The point of this Outlook is that even IF… even IF QEs and near zero-bound yields are able to refloat global economies and generate a semblance of old normal real growth, they will do so utilizing historically tried and true “haircuts” that rather surreptitiously “trim” an asset holder’s money without them really knowing they had entered a barber shop.
USA Today: – Federal Reserve keeps stimulus going full speed. – Amid signs of a weakening economy, the Federal Reserve agreed Wednesday to continue an aggressive initiative to hold down interest rates and stimulate growth by buying government bonds.
FT Adviser: – GLG’s fixed income manager Mawby avoids Apple bonds. – GLG Group’s Corporate Bond and Strategic Bond manager decides not to take a bite of Apple debt issuance.
Learn Bonds: – Manage your fixed-income investments so they mature in about October 2017. – Besides laddering and barbelling, there is another fixed-income investment timeframe strategy you can use. I call this strategy anticipating because you are anticipating what interest rates will be in the future. Anticipating is the best strategy, but it is more difficult to execute; and you may want to temper it with a laddering effect to lessen the greater risk associated with it.
Anthony Valeri: – 1950s may provide a rough guide of what bond investors can expect in coming years. – Bond market perspectives. – In this week’s investment outlook we take a look back to the 1950s, which bears similarities to today’s environment, to see what the future may hold for bond investors. The rise in interest rates was gradual and included periods of losses but also periods of strength, highlighting that bonds can still play a role in a portfolio.
ETF Trends: – Investors tap mortgage bond ETFs for yield, rate protection. – An ETF that invests in government-sponsored mortgage bonds has been seeing healthy inflows in recent weeks from investors who want some protection if interest rates rise.
Forbes: – When measuring bond performance, It’s all relative. – Understanding a bond’s relative performance to a benchmark, including what’s driving this performance, is critical to making smart investment decisions.
MoneyWatch: – The Lending Club – a critical review. – The Lending Club is an online financial community that brings together creditworthy borrowers and savvy investors so that both can benefit. Investors can own parts of loans in increments as low as $25 each. This helps a small investor own a portion of a large number of loans. Investor returns are said to have been handsome but those returns may be overstated.
Bloomberg: – Stocks beat bonds, dollar for second month. – Global stocks rose in April, beating bonds, the dollar and commodities for a second month, as gold and copper slumped into bear markets and investors bet equities will benefit from unprecedented economic stimulus.
FundWeb: – Bonds raise game against stocks. – Analysis of bond and equity performance since the early 1980s has produced surprising results, with long-term bond returns generally outperforming stocks and with less volatility.
Bloomberg: – Iowa cuts yields in record $1.2 billion junk-debt offer. – The Iowa Finance Authority reduced yields on $1.2 billion of tax-exempt bonds being sold for a fertilizer plant, the largest speculative-grade issue ever in the $3.7 trillion municipal market.
MarketWatch: – Should you buy Apple bonds? – Despite the brand’s appeal, they may not make sense for most investors, advisers say.
24/7 Wall St: – Extreme dividend and high-yield trend: Junk bond spreads reach crush-depth. – The world of high yield dividends and high yield bonds has reached a level that seems almost unheard of just a year or two ago. If this is not a testament to junk bonds not being that junky then nothing else is. The flip-side of the coin is that this is also a testament of a growing bubble in the price of high yield bonds and junk bonds from companies in America.
BusinessWeek: – New Jersey sells $350 million of G.O. bonds to Bank of America. – New Jersey sold $350 million of new- money general-obligation debt with Bank of America (BAC) Merrill Lynch the winning bidder and 10-year debt priced to yield 1.89 percent, data compiled by Bloomberg show.
What Investment: – Money to keep flowing from bonds to equities, reckons Ernst & Young. – The Ernst & Young ITEM Club, an economic forecasting group, has predicted that equities will continue to attract assets at the expense of bonds for another four years.
Indexuniverse: – Vanguard Total Intl. bond fund nears launch. – Vanguard, the third-largest ETF provider by assets, appears to be quite close to launching its Vanguard Total International Bond Fund, from the looks of regulatory filings.