Bernanke Speaks, Bonds Hold Steady…Can Sex Sell Bonds?…Its a Bond Friendly World…and more!November 20th, 2012 by Simon G
Barron’s: – Bernanke speaks, bonds hold steady. – Fed Chairman Ben Bernanke says the jobs market is still far from healthy and that the Fed has no plans to pare its bond-buying program.
The Big Picture: Can sex sell bonds? - Japanese women are seeking men who invest in government bonds, according to an advertisement being run by the Ministry of Finance.
CNBC: – Bernanke signaling ‘A bond-friendly world’ – It’s a bond-friendly world. And it’s going to remain a bond-friendly world. You’re going to have to go out, do a search for yield and look at dividend-paying stocks.
FT: – Bernanke bearish on fiscal cliff. – Ben Bernanke warned that the fiscal cliff is already dragging down the US economy and begged political leaders to find a rapid solution.
Waters Technology: A special report on the fixed income market
Sober Look: Another record month for leveraged loans - loan funds AUM hit a new record in October.
Bloomberg: – Municipal bond buying drops off, slowing trading. – The volume of municipal securities traded in the third quarter dropped 6.7 percent to $794.9 billion from the same period a year ago, as buying tapered off, data released on Tuesday.
FT: – Muni yields fall as investors seek shelter. – A post-election buying spree in US municipal bonds has pushed yields to years, as investors look for shelter from tax their lowest level in 45 rises expected in the New Year.
theAtlantic: – Mohamed A. El-Erian – Raising taxes on the rich: the right policy, but not a solution. – Democrats should win the “rate debate.” But their victory will do little for the jobless, the housing market, our clogged credit pipes, our sagging infrastructure, our higher education system.
Bloomberg: – Here’s one thing a muni bond whizz won’t predict. – Despite dire predictions a few years ago that municipalities would default in droves, Ronald Schwartz never seemed to break a sweat. The manager of the $1.1 billion RidgeWorth Investment Grade Tax-Exempt Bond Fund maintained his enviable record amidst all the apocalyptic talk, having beaten some 96 percent of his peers over the last 15 years.
ETF Trends: – Muni bond ETFs solid on tax fears. – Municipal bond ETFs are strong performers in 2012 and have enjoyed an added tailwind following President Barack Obama’s re-election on expectations investors will see higher taxes.
Cate Long: – Do doctor shortages affect a state’s decision to opt out of Obamacare? – The media have focused on the recent Affordable Care Act (ACA) deadline for states to decide whether they will create health insurance exchanges. It’s an important issue, but if a state does not agree to build an exchange, the federal government will step in and create one. So either way, all 50 states will end up having health insurance exchanges.
WSJ: – Market analysts react to French downgrade. – Moody’s became the second ratings agency to strip France of its triple-A rating but the market reaction so far has been muted, with the euro bouncing back above $1.28 to the dollar and French government bonds and European equities paring initial losses.
Learn Bonds: – Are corporations really de-leveraging? – Just because there are record amounts of corporate bond issues coming to market, that doesn’t mean there is more corporate debt. For example, refinancing maturing debt and existing debt at lower interest rates could be causing a rise in the issuance of debt, without the total amount of debt outstanding increasing.
Bloomberg: – Miami marlins bondholders win as fans cry swindle. – Baseball’s Miami Marlins won public support for a $515 million stadium by saying they couldn’t compete without it. Now, after the team capped its worst season in more than a decade by trading high-priced players, taxpayers on the hook for ballpark costs are angry.
WSJ: – Investors play name game on muni debt. – Bonds tied to a distressed city often take a hit when plummeting tax revenue or outsize pension costs strain the budget. But some bonds that bear a city’s name are in better shape than others.
Bond Buyer: – Three more muni groups support recovery bonds. – Three muni market groups have joined forces with the Council of Development Finance Agencies and sent Congress draft legislation that would create special Hurricane Sandy Recovery Bonds to help businesses and residents in the Mid-Atlantic region still reeling from storm-related destruction.
Gross: Bernanke confirms PIMCO’s New Normal after 3 years! “2% economic potential at least for a time.” Probably lower & longer Mr. Chairman
— PIMCO (@PIMCO) November 20, 2012
Bonds are moving lower post the Fed purchase
— InterestArb (@InterestArb) November 20, 2012
Munis remain “rich.” The 30yr muni/tsy ratio closed last night at 92%, which is a 12 month low.
— Daniel Berger (@munimarketmaven) November 20, 2012
— Cate Long (@cate_long) November 20, 2012