Best of the Bond Market for October 31st, 2012
WSJ: – Are investors about to head lemming like over the bond cliff? - Those who’ve been binging on bond mutual funds should at least be aware of the signs that may augur a nearing yield bottom. But many of the financial advisers and retail investors who believe they’ll have time to trim plump fixed-income portfolios before bond prices fall may be in for a rude awakening.
Barron’s: – Storm not a major threat to muni market. – With most mid-Atlantic states, cities and towns still tallying the damage costs after Hurricane Sandy, Nuveen Asset Management says the municipal obligations of states and communities impacted by the storm should remain strong, and if recent history is a guide then natural disasters don’t often result in major muni market problems.
NASDAQ: – PIMCO says don’t forget emerging market bonds in your portfolio. – Pacific Investment Management Company (PIMCO) is out with a very compelling call on emerging market corporate bonds. The rationale goes that, since the economic crisis in the developed world four years ago, the fiscal and economic strength of emerging markets are looking extremely attractive to big money managers.
Glen Rosenberg: – How the smart money gets more income with tax free municipal bonds. – How the smart money generates more yield (income) than the typical individual muni investor. It is by taking advantage of a misperception of risk, in particular, the differences between AAA rated and BBB rated tax free municipal bonds.
Bloomberg: – Local debt’s win over treasuries longest since ’06. – The $3.7 trillion U.S. municipal- bond market is set to beat Treasuries for the longest monthly stretch in six years as investors turn to tax-exempts for their relative safety.
Reuters: – More disclosure of muni dealer bond campaign donations sought. – The Municipal Securities Rulemaking Board said on Wednesday that it is seeking regulatory approval to demand greater disclosure by muni dealers about contributions they make to campaigns for bond measures appearing on election ballots.
Artemis: – Catastrophe bond market participants comment on Sandy. – Sandy is threatening to be the worst northeast hurricane in living memory, larger in size, with stronger winds and threatening a larger storm surge than last years hurricane Irene. Reinsurers and the catastrophe bond market are not out of danger yet and very early estimates suggest an insured loss in the mid to upper single digit billions.
Learn Bonds: – What’s the difference between a Roth and Traditional IRA? – An Individual Retirement Account or IRA for short, is a type of investment account that allows investors to reduce the tax bill on the money that they are saving for retirement. There are several different types of IRA’s however the most popular are the Traditional IRA and the Roth IRA. So what are the differences and which one is right for you?
Bloomberg: – US 10-Year yields fall to 2-week low on post-hurricane demand. – Treasuries rose, pushing 10-year note yields to a two-week low, on month-end demand for U.S. debt following yesterday’s closure for Hurricane Sandy and speculation the massive storm will trim economic growth.
The Inquirer: – David Lerner Associates must repay muni bond overcharges. – If you bought a real estate investment trust or municipal bonds from David Lerner Associates, listen up – you might be entitled to money back.
IFA: – First muni bond insurer since 2007 strikes its first deal. – Build America Mutual Assurance, which is the first insurer to enter the municipal bond since before the credit markets collapsed in 2008, has inked its first deal in Pennsylvania.
Bloomberg: – Treasuries pare losses after hurricane as bond market re-opens. – Treasuries pared losses as investors purchased U.S. government debt at month-end following yesterday’s closure for Hurricane Sandy amid speculation the massive storm will reduce economic growth.
Bloomberg: – Corporate bond sales top $3 trillion and near 2009 record. – Corporate bond sales surged to $3.3 trillion this year, challenging the record in 2009, as investors sought higher-yielding alternatives to government securities and companies took advantage of borrowing costs at all-time lows.
Gross: If you can make it there, you’ll make it anywhere. Come on, come through New York, New York (NJ and others too)!
— PIMCO (@PIMCO) October 31, 2012
Neither MTA or Port Authority have capacity to issue a lot of munis @felixsalmon Selling really long dated paper to Fed would circumvent.
— Cate Long (@cate_long) October 31, 2012
secondary trading with ny desks (ours included) has been an A for effort, D- for execution today #muniland
— Muni Trader (@MuniTrader) October 31, 2012
— Cate Long (@cate_long) October 31, 2012