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Bill Gross: – The fog thats yet to lift. – We agree that QE must end. It has distorted incentives and inflated asset prices to artificial levels. But we think the Fed’s plan may be too hasty.
CFO Journal: – Bond markets get messier. – The bond markets are getting even more turbulent. Credit markets have gotten so messy some investors are having trouble finding people willing to buy what they are selling.
DealBook: – Economists are asking: Did Bernanke tip Fed’s hand? – Is Ben Bernanke being too chatty? That’s the question being put forward by some economists and others about Mr. Bernanke, the normally restrained Federal Reserve chairman, after his comments in May and last week about the economy and the central bank’s plans for eventually backing off its stimulus measures.
Learn Bonds: – Misinterpreting the Fed is creating a buying opportunity in bonds. – Investors who are helping to push yields higher are simply giving bond buyers a major opportunity to get long various individual bonds. This is especially the case for the true long-term bond investors willing to purchase single-A- and triple-B-rated bonds currently yielding 5% to 7% and patiently hold them while collecting coupons and ignoring price fluctuations that are largely irrelevant.
MarketWatch: – Bonds: The mother of all overreactions. – Yes folks — the world panicked in a hurry following Fed Chairman Ben Bernanke’s speech, with everything selling off indiscriminately. The notion that the Fed has complete control of the yield curve is seriously wrong.
Barron’s: – 3 bond strategies amid rising rates. – With the recent jump in interest rates, hedged bond funds, floating-rate notes and TIPS all hold significant appeal.
Money Beat: – Options traders see junk bonds falling further. – High-yield bonds have taken a big hit in recent sessions, in a selloff that some options traders think will continue.
247WallSt: – Just how large is the junk bond market? – Most people who have an IRA, 401(k) or an investment account have heard of the term “junk bonds” in some form or fashion. The media often calls this speculative grade or under investment grade but it is not very likely that many know just how large this market is. This segment is much larger than most might think at more than $2.2 trillion.
abc: – Bonds: Investing myths dispelled. – Certified Financial Planner John Fawaz says bonds are not just for conservative investors, bonds can and should play a role in any portfolio.
Morningstar: – When duration goes negative. – The use of derivatives allows some bond funds to turn a key measure of interest-rate sensitivity on its head.
Money Beat: – The fairy tail trade. – There is no Bernanke Put. There never was. If the market thinks that somehow it’s got a guarantee, and makes imprudent decisions based on that misguided notion, it will eventually suffer the consequences of those actions. It’s a fairy tale to think otherwise.
ETF Trends: – Muni bond ETF discounts may signal buying opportunity. – The past week’s sell-off in municipal bonds has caused ETFs tracking the fixed-income sector to trade at steep discounts to net asset value that may provide an opportunity for bargain hunters, according to a report.
WSJ: – Falling debt prices roil market. – The rout in the credit markets has gotten so messy some investors are having trouble finding people willing to buy what they are selling. From municipal bonds to corporate debt to mortgage-backed securities, prices fell sharply again Monday, extending big declines that began last week.
FT: – Inflation linkers offer scant protection. – U.S. bond funds promising to protect investors from inflation have not just failed in that aim this year: Those that specialise in buying inflation protected bonds have fallen victim to the worst trade in fixed-income markets.
PIMCO: – Stay the course. – For investors to reach their goals, maintaining proper diversification is paramount. Although much attention has been paid to the risks and rewards of fixed income, it is important to remember that bonds have many attributes that can dampen return volatility and enhance risk-adjusted returns.
Reuters: – Limits on U.S. municipal bond exemption would hurt economy. – Limiting the tax exemption for the interest paid by U.S. municipal bonds would not only make borrowing more expensive for cities, counties and states, but would also drag on economic growth while driving up unemployment, according to a study released by the U.S. Conference of Mayors on Monday.
Bloomberg: – Munis extend worst losses since 2008 as Illinois sets sale. – The U.S. municipal market is poised for its worst monthly loss since 2008, leading investors to offer a record amount of tax-exempt debt as yields surged to 25-month highs.
Brad Zigler: – Bargain hunting along the yield curve. – Back in 2005, New York Times columnist Thomas Friedman’s tome, “The World Is Flat,” laid out ten “flatteners” he claims are increasing global competitiveness. He did not see ahead to the then-looming financial crisis and the subsequent introduction of another key flattener.
Reuters: – Investors slash bullish U.S. bond bets after FOMC-survey. – Investors curtailed their positions in longer-dated U.S. Treasuries holdings in the latest week, after the Federal Reserve signaled it might reduce its bond purchases later this year if the economy shows further improvement, according to a survey released on Tuesday.
Today's 2yr Trsy auction was on the weak side and reflects a still nervous market not ready to step in and buy. 5yr tomorrow.
— AnthonyValeri (@Anthony_Valeri) June 25, 2013