Where Would Bonds Be Trading Without QE…Detroit Targets Pensioners…Volatility Makes Bonds More Compelling… and more!

bonds-without-qeTo get the Best of the Bond Market delivered to your email daily click here.

TF Market Advisors: – Where would bonds trade if the Fed “normalized” policy. – Before we talk too much about “tapering” or “unwinding” or whatever euphemism you want to use for the Fed buying less, but still a heck of a lot, of bonds, we thought it would be interesting to play around with where rates would be if the Fed just had a “normal” policy. We think it might be useful to think about that for a bit. Just drop the idea of QE and tapering and play “what if” with the treasury market.

Reuters: –  Detroit takes aim at its pensioners. – Detroit, which is trying to avoid insolvency by proposing what Moody’s this week called an “unconventional and precedent-setting restructuring.” It plans to dip into its pension fund, as part of a proposal to creditors.

FT Adviser: – Bonds ‘compelling’ after volatility. – Last month’s spike in bond market volatility has made some areas of the corporate bond market “more compelling”, according to Pimco’s Ketish Pothalingam.

Learn Bonds:  – 2 REIT preferreds yielding over 6%. – The preferred stocks of many REITs, like the common stocks, have recently sold off. As the selloff intensified, I decided to do some shopping. In this article, I would like to introduce readers to two of the preferreds I purchased and the businesses backing those preferreds.

ETF Daily News: – Assembling your high-yield bond ETF game plan. – While the equity market is continuing to show the initial signs of cracking under the pressure of recent economic data, high yield bond investors have already gone for a bit of a ride. Spreads are gyrating all over the place, and if you have lightened up on your high yield bond exposure over the last few months in anticipation of a better entry point as spreads inevitably widen; you should be paying very close attention to what happens next.

FT: – Bond stampede fear spurs race for reform. – If there is one thing that keeps bond investors awake at night, it is the fear of a stampede for the exit. And for good reason: there could be a pile-up in the doorway, leading to extreme market swings.

Bloomberg: Investors switch bonds for stocks, BofA survey shows. – Investors cut bond holdings to a near two-year low this month, and bought stocks, as expectations the Federal Reserve may remove monetary stimulus bolstered growth forecasts, a Bank of America Corp. (BAC) survey showed.

ETF Trends: – New High-Yield ETF to track global short-maturity bonds. – Invesco PowerShares plans to launch a new ETF this week that invests in global high-yield bonds with shorter maturities to protect against the risks of rising interest rates.

FT: – Markets Insight: It’s hard to write a happy ending to ‘QE’ story. – Was it just a transitory bout of angst? Or have we finally witnessed the end of the great 32-year bull market in bonds? It feels to me like the latter with yields on 10-year and 30-year US Treasuries up by half a percentage point since the start of May and emerging markets in a funk. We are in such uncertain monetary territory that anything could yet happen to upset that judgment. What is clear is that the rules of the global market game have changed in a remarkably short space of time.

MarketWatch: – How to have your stocks and income too. – Multi-asset income ETFs are getting more attention as dividend-paying stocks face competition for investors’ dollars from rising yields in the bond market.

Bloomberg: – PIMCO cools on covered debt after record rally. – Europe’s covered bond market is falling out of favor with Pacific Investment Management Co. after a record rally sent relative yields to a three-year low.

FT Adviser: – GLG manager snaps up Apple bonds after price drop. – Bond manager Jon Mawby took a slice out of the tech giant for his portfolio following the 9 per cent fall in price.

Goldseek: – Taper Talk: Bonds at risk – Where to hide? – Induced by “taper talk,” volatility in the bond market has been surging of late. Is there a bond bubble? Is it bursting? And if so, what are investors to do, as complacency might be financially hazardous.

DoctoRX: – Speculators fight the Fed once again in the bond market: Can they finally win one? – Score one for persistence! Small speculators in the futures markets, unbowed by numerous losses the past five years, are again bearish on Treasuries. They are shorting bonds at a fraught time given this week’s Federal Open Market Committee (FOMC) meeting.

Advisor.ca: – Handling bonds in a low rate environment. – High-yield corporate bonds might be appealing in low-rate environments, but “there’s potential for default, and the credit risk is higher,” says Nicholas Leach, vice-president of global fixed income, high yield at CIBC Global Asset Management.

Wall St Sector Selector: – Gone are the days when municipal bonds were safe. – Dear reader, as it stands, cities across the U.S. economy are posting higher budget deficits. Remember: the main source of a city’s income is usually property taxes. With the housing market still depressed, I doubt many troubled cities will be able to get out of their rut anytime soon. The impacts of this on municipal bonds will be harsh.

Barron’s: – Bond-fund worry gauges are through the roof. – Amid all this interest-rate worry, the cost of protecting a bond exchange-traded fund from price declines lately has been soaring.

Click here to learn more about forex brokers and forex trading.


All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
HTML Snippets Powered By : XYZScripts.com