Posts filed under “Fixed Income/Interest Rates”

Cash Purchases Spike as Interest Rates Rise


Source: RealtyTrac

 

The chart above comes form the RealtyTrac Residential & Foreclosure Sales Report. It should come as no surprise that as rates rise, so too do all-cash purchases.

There are a few significant factors worth noting:

1) Last year, institutional investor purchases for residential properties (single family homes, condominiums and townhomes) accounted for 7.3 percent of all U.S. residential property purchases. This is up from 5.8 percent from in 2012 and 5.1 percent in 2011.

2) Median price of a distressed residential property — in foreclosure or bank-owned — was 38 percent below non-distressed property median ($108,494 versus $174,401) in December.

3) Bank-owned properties (REO) accounted for 9.3 percent of all U.S. residential sales last month, essentially unchanged from a year earlier (9.2 percent in December 2012).

Category: Credit, Fixed Income/Interest Rates, Real Estate

Economic Indicators Dashboard

Click for an interactive graphic. Source: Russell Investments

Category: Consumer Spending, Credit, Economy, Employment, Fixed Income/Interest Rates, Markets

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

Nobody Likes Bonds!

Earlier this week, we noted that “the Consensus Hates Bonds.” That is a small part of the reason my firm decided to increase our exposure to specific types of fixed income this year after having been significantly underweight bonds in 2013. I mentioned we added preferreds and corporate fixed income, obtaining that exposure primarily though…Read More

Category: Fixed Income/Interest Rates, Sentiment

Surprising Consensus On Cross Asset Research

Source: iShares by BlackRock   If you want a sense of the consensus view of equities, this recent chart from BlackRock might provide some insight.   Continues here    

Category: Asset Allocation, Fixed Income/Interest Rates, Psychology

A (Somewhat) Bursting Bond Bubble

Another holiday present from Goldman Sachs: Source: Goldman Sachs, “Top of Mind”, December 18, 2013.

Category: Economy, Fixed Income/Interest Rates, Markets

From Secrecy to Transparency at the Fed

Via Goldman Sachs: Source: Goldman Sachs, “Top of Mind”, December 18th, 2013

Category: Federal Reserve, Fixed Income/Interest Rates

Crowding In – Bond Interest Rates

Crowding In – Bond Interest Rates David R. Kotok Cumberland Advisors, December 14, 2013     We are watching bond market volatility as Treasury bonds struggle with questions about what the Fed (Federal Reserve) is going to do. Only the passage of time and improvement of communication from the new Fed leadership will resolve this…Read More

Category: Fixed Income/Interest Rates, Think Tank

When Might the Federal Funds Rate Lift Off?

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

Puerto Rico Update

Puerto Rico Update David R. Kotok Cumberland Advisors October 29, 2013       There has been a recent flurry of activity regarding Puerto Rico, involving their debt, rating agency views of that debt, the bond insurers that have been insuring their debt, the state-specific mutual funds that are holding Puerto Rico debt, and the…Read More

Category: Fixed Income/Interest Rates, Think Tank