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PIMCO: – Which way for bonds? – Bill Gross PIMCO founder and co-chief investment officer, answers the questions most bond investors have on their minds right now.
Bloomberg: – PIMCO joining sellers spurs steepest monthly losses. – The $3.7 trillion municipal market is poised for its first two-month slide since 2011 as Bill Gross, manager of the world’s biggest bond fund, is joining individual investors in reducing holdings of local debt.
CNBC: – 5 bond questions to ask your financial advisor now. – For investors unsettled by the unrest in the bond markets and the performance slide in emerging market bonds in particular, here are five questions you need to ask your advisor, and of yourself. You’ll probably find that amid volatility, reverting to core principles of investing and risk are the best benchmark for action.
Learn Bonds: – The true U.S. unemployment rate is about 11.3%. – The unemployment rate that is almost always quoted and that the Fed is striving to lower is not the true unemployment rate. It is a subset of the true unemployment rate. The true unemployment rate is much larger and somewhat unknown. In this article, I will provide an approximation of what the true unemployment rate is and define how the U.S. can obtain a true unemployment rate.
FT: – Bonds remain cornerstone of wealth preservation. – It was all so easy in the 1990s. With yields on even the safest government debt comfortably north of 5 per cent and inflation subdued, preserving wealth was relatively straightforward. The precise opposite scenario prevails today.
Bloomberg: – Detroit on brink of bankruptcy suspends some debt payments. – Detroit on the brink of bankruptcy with $17 billion in liabilities, will suspend payments on $2 billion of unsecured debt, beginning with an installment due today, Emergency Manager Kevyn Orr said today.
Business Green: – Climate bond market doubles to $346bn in 2012. – Climate-themed bonds experienced a “bumper year” in 2012 as the market almost doubled to $346bn. The figure, revealed in a report by HSBC and the Climate Bonds Initiative, marks a huge rise on the $174bn recorded by the two organisations over the previous year.
Mike The Phd: – Oversold yields: Is this the best investment opportunity in years? – As anyone who has been paying attention knows, bond yields have started to creep up over the last month as talk of Fed tapering, concerns about the economy being either too strong or too weak. This rapid rise in yields, about 0.5% on the ten-year treasury, has surely caused a lot of heartburn and consternation for investors in all manner of fixed income investments and income producing securities. Yet, the increased volatility in these sectors of the market have also created some interesting investment opportunities.
Reuters: – After emerging corporate bond boom, default risks on rise. – The $1 trillion market in emerging corporate bonds could be headed for a surge in defaults if company earnings in swiftly depreciating roubles or pesos fail to keep pace with dollar-based debt repayments.
Reuters: – Foreigners flee from U.S government bonds in April. – Foreign investors dumped U.S. government debt in April and were net sellers of all long-dated U.S. securities for the third consecutive month, the U.S. Treasury said on Friday.
Cate Long: – Puerto Rico government development bank’s clogged balance sheet. – The Puerto Rico Government Development Bank (GDB) has indicated that it could sell up to $2 billion of bonds this year to refinance loans it made to the Puerto Rico Highway and Transportation Authority (PRHTA). These loans on the GDB balance sheet comprise about 24 percent of the GDB’s assets. The PRHTA is a money-losing operation with $4.7 billion of its own debt outstanding. If the GDB is successful in moving these loans off its balance sheet, then the PRHTA could be carrying up to $6.7 billion in debt on a very shaky revenue base.
The Week – Stocks and bonds sell-off: What the experts think. – Get ready for a long ride down. ‘This won’t be a short-lived sell-off,’ predicts Benoit Anne of SocGen.
Forbes: – The Fed’s QE schemes have raised, not lowered, T-Bond yields. – Andy Haldane, the Bank of England’s executive director for financial stability, believes the biggest risk to the global financial system is a “disorderly” bursting of the bond bubble created by quantitative easing.
Bloomberg: – Junk bonds set to strain apollo tyres following U.S. deal. – Apollo Tyres Ltd, which lost a quarter of its market value yesterday after announcing the biggest takeover by an Indian company in the U.S., will sell junk bonds to fund the $2.5 billion purchase, prompting analysts to warn the debt will strain the tire maker’s finances.
MarketWatch: – Jim Rogers on bond bubbles, buying gold and the Japan disaster. – high-profile investor Jim Rogers says bonds everywhere are in a bubble, and the pop is coming.
Hedgeworld: – How low do we go before EM buyers bite? – Is the emerging markets sell-off overdone? Just as investors got too enthusiastic about EM debt in the fourth quarter of last year and first of this, pushing yields and spreads ever tighter, the pessimism now hanging over the asset class is equally too extreme, say some bankers.
FT: – Bond sales dry up as interest rates rise. – The number of companies tapping the bond market has collapsed as a result of rising interest rates, threatening to halt a global refinancing wave that helped companies boost earnings and strengthen balance sheets.
When bonds rally the desks pitch call protection, when they selloff its extension protection #shortmemories
— David Schawel (@DavidSchawel) June 14, 2013