Markets News Regulators 

Here are 5 things to know about the surge in Fed mortgage bond buying

“Here are five things to know about the near $30 billion of mortgage bonds that the Fed has set out to buy since late May” writes Markets Reporter for marketwatch.com. Why does it buy mortgage bonds?. The Federal Reserve has dramatically picked up the pace of its mortgage bond purchases in recent months, with this week alone seeing the central bank snap up $1.8 billion.Anything above that $20 billion rolling does gets reinvested back into mortgage bonds, again to manage an orderly exit of its massive holdings.Not on the mortgage…

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Markets News Regulators 

U.S. Fed buys $1.8 billion of mortgage bonds, sells none

“NEW YORK (Reuters) – The Federal Reserve bought $1.754 billion of agency mortgage-backed securities in the week from Nov. 7 to Nov. 13, compared with $828 million purchased the previous week, the New York Federal Reserve Bank said on Thursday” writes Midwest Communications Inc for 95kqds.com. In a move to help the housing market begun in October 2011, the U.S. central bank has been using funds from principal payments on the agency debt and agency mortgage-backed securities, or MBS, it holds to reinvest in agency MBS. The New York Fed…

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Crypto Markets News 

HSBC and Singapore Exchange Pilot Blockchain in Bonds Issuance

“HSBC today said it joins forces with the Singapore Exchange (SGX) and investment company Temasek to execute a blockchain pilot for a fixed income issuance” writes Aziz Abdel-qader for financemagnates.com. HSBC is one of the founder members of Voltron, a blockchain-based open industry platform for digitizing trade finance documents on Corda, R3’s blockchain platform.There have been other blockchain issuances, but in most cases they weren’t handling the unique challenges faced in the issuance and servicing of fixed income securities in Asia.The test also makes HSBC one of the first asset global…

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Markets News 

The bond market is raising red flags about a trade deal, while stocks largely ignore

“People are worried about this trade deal and what the substance of it is.”” writes Patti Domm for cnbc.com. By Wednesday morning, the 10-year yield had fallen to 1.86%, six basis points lower than Tuesday’s close of 1.92%.Goldman Sachs strategists see scope for a higher 10-year yield but how high depends on the type of trade deal.It does run the risk of a boy who cried wolf dynamic, if you consistently get indications a trade deal is soon and it doesn’t actually occur.There supposedly is a phase on trade deal…

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Markets News Stocks 

The historic ’60-40′ rule of investing is finished for at least 10 years thanks to low bond returns, according to JPMorgan’s $1.9 trillion asset management arm. Here’s what to do instead.

“Some investors will find that appealing, but the metal’s price is volatile, and it doesn’t generate income like bonds do” writes Marley Jay for businessinsider.com. He says high quality real estate and infrastructure assets will appeal to many investors because they offer strong, steady returns.That means investors have to think carefully about their situations and the pluses and minuses of numerous alternatives.The idea was that the stock-bond combination would perform well in good times and bad, and would deliver safety and steady income.”The 60-40 stock-bond portfolio is going to give you…

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Markets News Stocks 

Don’t count on investors’ cash coming off the sidelines to boost stock prices

“Add this all up and I see considerable, structural risk aversion among all investors, individuals and institutions alike” writes Howard Gold for marketwatch.com. It’s that both institutions and individuals have made a huge move into bonds — investing $2.7 trillion since January 2006.Some of that cash may well go into buying stocks, and would help drive the market higher, as this column noted in September.Pension funds need low-risk instruments such as bonds and cash to make regular payouts and balance out the risk of stocks, which they must own for…

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Markets News Stocks 

Bleak decade ahead for stock and bond returns, warns Morgan Stanley

“As for where to go, they say Japanese and U.K. stocks are delivering better than their long-term averages” writes Markets Reporter for marketwatch.com. And when it comes to bonds, they say investors will need to rotate away from high-yield and government bonds, and into investment grade, which Morgan Stanley says is still “vital for returns and diversification over the long run”.That 60/40 carve-up refers to longstanding advice that says investors should balance their portfolios as follows: 60% parked in stocks to benefit from the historically higher returns for that asset…

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Markets News 

Vampire bats form bonds of ‘friendship’ that last beyond captivity

“Still, some bonds dissolved over the study period, especially those between captive bats that had originally been wild and those that had been born in the lab” writes Eva Frederick for sciencemag.org. Over time, some of the bats seemed to form “friendships,” in which they consistently groomed and exchanged food with the same few partners. Source: sciencemag.org

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Markets News 

The ‘Warren Buffett of bonds’ has survived every major market crash since 1958. He told us 4 pieces of wisdom for anyone who also wants to enjoy a long career.

“Fuss’ chances of such a long career in fund management would be slimmer today if he were just starting out” writes Akin Oyedele for businessinsider.com. Against this backdrop, Business Insider asked Fuss his advice for fund managers who are still early in their careers.But the length of Fuss’ career is not the only reason why he has become a legendary fixture of the fixed income world.Clients who would otherwise have paid for fund managers’ services are increasingly choosing cheaper and more passive investment options. Source: businessinsider.com

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Markets News Stocks 

Netflix prices $2.22 billion of its junk bonds

“NFLX, -4.09% said late Tuesday that it had priced $2.22 billion worth of junk bonds” writes Max A for marketwatch.com. Netflix said it plans to use the junk-rated bonds for a range of purposes that includes content, production, develop and potential acquisitions. Netflix stock fell 0.1% in the extended session and closed down 4.1% during regular trading to $266.69. Source: marketwatch.com

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