The Bullish Case for US Treasuries…Sandy Shutdown…Bonds Better Under Obama…and more!October 29th, 2012 by Simon G
Best of the Bond Market for October 29th, 2012
Macro Economist: – Making a case for US treasuries. – Could US Treasuries be the best performing asset class of the next one-two years? It’s quite possible. I am sure this article is bound to stir up controversy, but I’d like to spend some time analyzing several drivers that could buoy bond prices in the coming months.
SIFMA: Bond Markets closed tomorrow – here is the press release.
Bloomberg: – Bonds better off with 6.5% under Obama from Bush’s 4.6%. – Whether they favor President Barack Obama or Republican challenger Mitt Romney in the Nov. 6 election, bond investors are better off now than four years ago.
WSJ: – Is your bond strategy all wrong? – Some prominent investors say danger is lurking in the decades-old method used to build bond portfolios. If they are right, small investors might want to rethink their strategies.
Bloomberg: – Treasury real yields turn positive as inflation slows. – Treasury 10-year note yields exceeded the Federal Reserve’s preferred inflation gauge for the first time since 2011 as a report showed price increases slowed during the third quarter.
WSJ: – Bonds see boost from Fed moves. – Corporate bonds are outperforming the stock market in the third quarter as the Federal Reserve’s recent stimulus measures have bolstered demand for company debt.
Cate Long: – Is the US growing, or just issuing debt? – The collective output of the U.S. has increased modestly in the most recent quarter, this is positive news, but did the economy really expand? Or is it possible that the government just issued more debt that flowed into the economy and was picked up as “growth”?
LearnBonds: – I know where CD rates will be in 2015! Why doesn’t Nobel Laureate Thomas Sargent. – I actually think that Professor Sargent does know what CD rates are going to be in two years. I think he knows within a quarter percent the range which they will be.
MarketWatch: 13 US cities going broke. Here’s a look at 13 US cities that have a less than healthy looking balance sheet.
WSJ: – Treasury bonds rise on hurricane. – Investors sought refuge Monday in Treasury bonds over worries about the potential impact from Hurricane Sandy. The hurricane is forecast to hit the U.S. East Coast late Monday and has triggered the shutdown of U.S. stock market trading Monday. U.S. bond markets will be closed at 12 p.m. EDT Monday. Some traders warn that U.S. financial markets could be shut Tuesday.
Artemis: – Sandy threatens billion dollar losses, could threaten catastrophe bonds. Experts are suggesting that Sandy, still a category 1 hurricane at the moment, could cause more extensive damage and hence higher losses than last year’s hurricane Irene. Should losses from Sandy move up into the double-digit billions of dollars then it is possible that some catastrophe bonds could face a risk of being impaired.
Glen Rosenberg: – Building the ideal municipal bond portfolio. – How to build a municipal bond portfolio to simultaneously seek to achieve maximum income as well as principal protection.
CNN: – Bubble trouble in junk bonds. – As yield-hungry investors continue to jump head first into junk bonds, experts are warning that a potential bubble may be forming.
Gross: Romney victory doesnt mean tight money/highr rates. Obama victory doesnt mean lowr rates. Conclusion: not much change. Dont fight Fed
— PIMCO (@PIMCO) October 28, 2012
Several Competitve muni bond sales scheduled 4 Tues postponed & will change sale dates. TBA
— Bond Underwriter (@BondUnderwriter) October 29, 2012
Gross: Stay dry & respect Mother Nature. In the aftermath, ask yourself why the world is having such violent weather.
— PIMCO (@PIMCO) October 29, 2012