Posts filed under “Fixed Income/Interest Rates”

Fed Policy and Stock Outlook

Fascinating stuff here:

The Easy Money’s Been Made: Fed Policy and Stock Outlook

Source: Bloomberg Chart of the Day

Category: Federal Reserve, Fixed Income/Interest Rates, Markets

U.S. Debt Held by Foreigners Hits Record $6.07 Trillion

Posted without comment: Source: Real Time Economics

Category: Credit, Data Analysis, Economy, Fixed Income/Interest Rates, Taxes and Policy

Restoring Confidence in Reference Rates

Restoring Confidence in Reference Rates October 2, 2014 William C. Dudley, President and CEO, NY Fed Remarks at NYU Stern School of Business, New York City       Thank you for the opportunity to speak with you today.1 In my remarks today, I will focus on the development and use of reference rates for…Read More

Category: Federal Reserve, Fixed Income/Interest Rates, Think Tank

Bill Gross’s Farewell Letter to PIMCO

Bill Gross, founder of Pimco, and its chief investment officer for the past 40 or so years, resigned last week. Rumor has it that he was but two steps ahead of a mutinous gang, swords out, planning to make him walk the plank. Gross was too quick and before the mutineers could force him, he…Read More

Category: Corporate Management, Fixed Income/Interest Rates

Open Secret of Libor Manipulation

open secretOpen Secret: The Global Banking Conspiracy That Swindled Investors Out of Billions is the new book written by Erin Arvedlund.

The book goes behind the scenes of the elite firms that trafficked in LiBOR based products, including Barclays Capital, UBS, Rabobank, and Citigroup to show the negative impact they had on both ordinary investors and borrowers.

Erin’s claim to fame was a column she wrote in Barron’s in the early 2000s outing Bernie Madoff as a fraud. It was a national bestseller titled Too Good to Be True.

Here is Yahoo:

“LIBOR, the London Interbank Offered Rate, is a global benchmark for interest rates. It’s tied to everything from mortgage rates and student loan rates to complex financial derivatives. And guess what? For a very long time it was rigged.

Now, multiple lawsuits are pending, and that could mean some money back for some investors, traders and consumers.

LIBOR is set each day by a group of bankers, based on estimates of rates at which banks would expect to borrow money from each other. It’s a system built on trust, not math. Regulators were tipped off back in 2007 that banks were fixing rates, and by the summer of 2012, an ugly scandal was revealed. An estimated $300 trillion in financial securities worldwide are based on LIBOR.

Video after the jump . . .

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Category: Books, Fixed Income/Interest Rates, Legal

A World of Sovereign Risk

Interesting interactive graphic from Blackrock:


Source: BlackRock

 

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Category: Credit, Data Analysis, Economy, Fixed Income/Interest Rates

High Quality Liquid Assets and Munis

HQLA and Munis David Kotok September 8, 2014     High Quality Liquid Assets (HQLA) is a term that now applies to the implementation of the Liquidity Coverage Ratio (LCR) in the Basel III Rule. This highly technical mouthful of acronyms and rules specifically applies to banks, their liquidity requirements and the rules governing the…Read More

Category: Fixed Income/Interest Rates, Think Tank

1981: 20-year Treasury bonds at a 15.78% yield

Today in 1981: Uncle Sam issues new 20-year Treasury bonds at a 15.78% yield, an all-time record-high interest rate for any U.S. government issue. Analysts say they expect that yields will have to go higher “to attract stronger demand.” Yields promptly begin going down, and keep going down for the next twelve years. Source: Daniel…Read More

Category: Fixed Income/Interest Rates, Inflation

Category: Credit, Fixed Income/Interest Rates, Think Tank

Hey, Janet (with apologies to the Beatles)

With August upon us and many readers likely at the beach, here is some levity from one side of the vocal debate on the future of Fed policy. Please hum the melody of Hey Jude as you read the lyrics. With thanks and credit to the Beatles.   “Hey Janet” Hey Janet, don’t make it…Read More

Category: Federal Reserve, Fixed Income/Interest Rates, Humor, Music