Posts filed under “Fixed Income/Interest Rates”

Barclays: Detroit Chapter 9 Begins

Zero Hedge embedded this Barclays piece about the Detroit Bankruptcy. I don’t agree with all of it, but it is a worthwhile read, and until they take it down, here it is.

 

 

Barclays Municipal Research Detroit – Chapter 9 Begins

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

The Recent Bond Market Selloff in Historical Perspective

The Recent Bond Market Selloff in Historical Perspective Tobias Adrian and Michael Fleming Liberty Street Economics August 05, 2013     Long-term Treasury yields have risen sharply in recent months. The yield on the most recently issued ten-year note, for example, rose from 1.63 percent on May 2 to 2.74 percent on July 5, reaching its highest level since…Read More

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

Interest Rates Are Manipulated

If We Don’t Break Up the Big Banks, They Will Manipulate More and More of the Economy … Making Us Poorer and Poorer Interest rates are rigged: The big banks have conspired for years to rig interest rates … upon which $800 trillion in assets are pegged This was the largest insider trading scandal ever…Read More

Category: Fixed Income/Interest Rates, Think Tank

Case-Shiller: Home Prices Increase in May 2013

Click to enlarge
Chart

Key data points:

•  Home prices show increases of 2.5% and 2.4% for the 10- and 20-City Composites in May versus April.
•  Dallas and Denver reached record levels surpassing their pre-financial crisis peaks set in June 2007 and August 2006.
•  This is the first time any city has made a new all-time high.
•  All 20 cities increased from May 2012 to May 2013 and from April 2013 to May 2013.
•  In May 2013, the 10- and 20-City Composites posted annual increases of 11.8% and 12.2%.
•  The Southwest and the West saw the strongest year-over-year gains.
•  The overall report points to some shifts among various markets: Washington DC is no longer the standout leader and the eastern Sunbelt cities, Miami and Tampa, are lagging behind their western counterparts.

 

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Category: Fixed Income/Interest Rates, Real Estate

Detroit, Munis, A Follow Up

Detroit, Munis, A Follow Up David R. Kotok Cumberland Advisors July 26, 2013     As a follow-up to the Detroit-Muni Bond series we have published, here are additional views: 1. John Ruiz of Morgan Stanley Matrix offers this: “Note to cross-over buyers: if you see Meredith Whitney on your TV screen, and she is…Read More

Category: Fixed Income/Interest Rates, Think Tank

Post-Detroit Filing, Munis Are Cheap

Click to enlarge   Kotok via David Wilson: Municipal bonds are an “outrageous bargain” in the wake of Detroit’s bankruptcy filing, according to David R. Kotok, Cumberland Advisors Inc.’s chairman and chief investment officer. As the CHART OF THE DAY shows, the highest-rated notes and bonds of state and local governments yield more than Treasuries…Read More

Category: Fixed Income/Interest Rates, Legal

More on Munis, Detroit, Bloomberg, Whitney & Wilson

More on Munis, Detroit, Bloomberg, Whitney & Wilson David R. Kotok Cumberland Advisors, July 24, 2013     In our recent commentary on municipal bonds and Detroit, we argued in favor of buying the highest-grade AAA tax-free municipal bond It currently yields more than the corresponding taxable US Treasury obligation. Meredith Whitney, Muni Cassandra emeritus…Read More

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

Cheap Munis, Not Detroit

Cheap Munis, Not Detroit David R. Kotok Cumber July 22, 2013     We thank Michael Wilson of Morgan Stanley Wealth Management and FactSet Research Systems for a compilation of returns. Michael’s commentary in July talked about how “There was no place to hide in fixed income.” We agree, although we think hedging dampened volatility…Read More

Category: Fixed Income/Interest Rates, Think Tank

Rising interest rates could mean the window to fix infrastructure on the cheap is closing Barry Ritholtz, Washington Post, July 12     Thanks to the Federal Reserve’s zero interest rates and quantitative easing policies, borrowing costs are near generational lows. The costs of funding the repair and renovation of America’s decaying infrastructure are as…Read More

Category: Fixed Income/Interest Rates, Taxes and Policy

Short Looks Beautiful to Bond Investors

Nice chart from WSJ looking at various ways to express Bond trades; note the average duration is very short, and is in green at the far right:   Click to enlarge Source: WSJ

Category: ETFs, Fixed Income/Interest Rates