All Blog Posts (33)
Thoughts on Fixed Income Portfolio Positioning
By seekingdelta.wordpress.com/
Note: This article is longer than most at a little over 2,000 words. If you choose, click here for a pdf version.
A few days ago, I was asked how I would position the fixed income portion of a portfolio. In order to provide an answer in a timely…
ContinueAdded by Seeking Delta on February 14, 2011 at 1:30pm — No Comments
Bernanke Takes The Bull By Its Horns
Added by Maulik Mody on November 19, 2010 at 2:00pm — No Comments
Why Jim Grant is Wrong: We need gold but not the Gold Standard
Added by Ad Orientem on November 15, 2010 at 9:00pm — No Comments
Thoughts on Bernanke
on implementation of QE2, however it confirmed that further action is
likely. The speech seems to be an effort to lay out a longer term
framework for policy making in the new era of low inflation. The
Chairman talked about how we are in the midst of a transition from
decades of worrying about high inflation to a new era of low…
Added by Maulik Mody on October 15, 2010 at 2:30pm — No Comments
The markets respond...
The currency war continues as the world's central banks race to see who can incinerate the value of their paper money the fastest.… Continue
Added by Ad Orientem on October 5, 2010 at 4:20pm — No Comments
Fed To Buy $600 billion - Official Statement, November 2-3, 2010
Information received since the Federal Open Market Committee met in September confirms that the pace of recovery in output and employment continues to be slow. Household spending is increasing gradually, but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software is rising, though less rapidly than earlier in…
ContinueAdded by Maulik Mody on September 21, 2010 at 2:30pm — No Comments
Overnight Highlights - September 17, 2010
Added by Maulik Mody on September 17, 2010 at 9:36am — No Comments
August Asset Class Performance
Seekingalpha - Asset class performance for August, as seen by ETFs, shows that risky asset classes caused losses while fixed income ended in the green. The only ETFs with a positive return for the month were fixed income, precious metals, the yen, utilities and Hong Kong.
SPY, which tracks the S&P, returned a negative 4.5%. In sectors, Financials and Industrials were down… Continue
Added by Maulik Mody on September 3, 2010 at 12:26pm — 1 Comment
Highlights of the ECB Press Conference
The European Central Banks raised its forecast for the economic growth of the 16-country zone from 1% yo 1.6% for the remaining of the year and from 1.2% to 1.4% for 2011. It also updated inflation expectations for this year from 1.5% to 1.6% as part of its growth and inflation forecast updates every three months.
Leaving the benchmark interest rate unchanged, the ECB said it will extend emergency bank lending on a "full allotment" basis, indicating… Continue
Added by Maulik Mody on September 2, 2010 at 11:34am — No Comments
Frontier Communication's Stock to its Bond
Frontier Communications tops the list of the highest dividend yielding stocks in the S&P 500. The firm, which provides communication services in rural areas, traded at $7.73 as of August end and with an annual dividend of 75 cents yields 9.70%. The company has paid a quarterly dividend of 25 cents a share since 2005, and although it cut its last dividend to 18.75 cents a share, I expect the dividend to grow soon. In July,…
ContinueAdded by Maulik Mody on September 1, 2010 at 12:30pm — No Comments
Why the housing is still the best investment for middle class Americans--A Bond Trader's View of Housing
Added by DrBond on August 30, 2010 at 8:30pm — No Comments
Today's Auction Details
Added by Maulik Mody on August 25, 2010 at 3:30pm — No Comments
Fed Divided on Move to Sustain Recovery
Fed officials were divided on the manner in which the Fed has decided to manage its huge portfolio of securities in the last FOMC meeting held on Aug 10.
The one thing that officials remain in agreement on are the objectives of the Fed - to avoid deflation, or any broad decline in prices and wages, or a rise in inflation, and… Continue
Added by Maulik Mody on August 24, 2010 at 1:00pm — 1 Comment
SEC charges New Jersey Over Municpal Bond Offerings
The Securities and Exchange Commission charged the state of New Jersey with fraudulently marketing billions of dollars of municipal bonds, the SEC's first case against a state for violating securities laws.
The SEC alleged that New Jersey hid from investors in the bonds the fact that the state didn't have the cash on hand to meet its obligations under the state's two largest pension plans.
The SEC said that the offering documents…
ContinueAdded by Maulik Mody on August 18, 2010 at 4:40pm — 1 Comment
Example of Trading The Curve - Over 10% return in less than 3 months
After the article explaining how the yield curve can be traded, we demonstrate the same using an example.
The yield curve has been flattening since early 2010 and if investors had a view that it will further flatten, an appropriate long and short position can be used to make some profits in this near-zero rate economy.
For this example, we will see how taking a long position in the 10-Yr Treasury and a…
ContinueAdded by Maulik Mody on August 17, 2010 at 3:53pm — No Comments
Giethner says Fannie Mae, Freddie Mac need overhaul
Treasury Secretary Timothy F .Geithner said that although the U.S. government will continue to gaurantee mortgages, it needs to reduce its role in housing markets and ensure Fannie Mae and Freddie Mac won’t require future bailouts. “We will not support returning Fannie and Freddie to the role they played before conservatorship, where they took market share from private competitors while enjoying the perception of government support,” Geithner said in remarks at a… Continue
Added by Maulik Mody on August 17, 2010 at 11:00am — No Comments
Overnight Highlights - August 17, 2010
Equities across Asia and Europe were mixed and mostly flat. Bond yields fell across the Atlantic. German 10-Yr Bunds were 6 bp lower at 2.323%. The 2s10s US spread was at 207 bp at the Asia open, 6 bp flatter on the day. USD fel as DXY trades around 82.50. US 2Y swap spreads widened 0.3 bp to 20.88 bp overnight. The TED spread tightened by 1.1 bp to 0.21%. Libor-OIS improved 0.7bp to 19.2 bp.
Consumer prices in the Euro zone increased 1.7% from a year earlier after 1.4% in June,… Continue
Added by Maulik Mody on August 17, 2010 at 10:57am — No Comments
How to trade the yield curve
In bond trading 102, we discussed how professional bond traders trade on expectations of changes in interest rates (referred to as “outrights”). Bond traders also trade based on expected changes in the yield curve. Changes in the shape of the yield curve will change the relative price of bonds represented by the curve. For example, suppose you have a steeply upward sloping yield curve Like the one below:…
ContinueAdded by Maulik Mody on August 16, 2010 at 3:07pm — No Comments
Negative TIPS Yields Provide Some Tips On The Economy
Added by Maulik Mody on August 13, 2010 at 11:07pm — No Comments
Fed’s Hoenig: Rates Need to Rise
“We need to get off of the emergency rate of zero, move rates up slowly and deliberately,” which will bring policy in better alignment “with the economy’s slow, deliberate recovery,” the official said. While the markets may like the current stance of… Continue
Added by Ad Orientem on August 13, 2010 at 8:04pm — No Comments
Featured Blog Posts
- Fed To Buy $600 billion - Official Statement, November 2-3, 2010
- Highlights of the ECB Press Conference
- Frontier Communication's Stock to its Bond
- Why the housing is still the best investment for middle class Americans--A Bond Trader's View of Housing
- Consensus Plays Catch Up to the Fall in Interest Rates
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- Why the housing is still the best investment for middle class Americans--A Bond Trader's View of Housing
- How to trade the yield curve
- Thoughts on Fixed Income Portfolio Positioning
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- Example of Trading The Curve - Over 10% return in less than 3 months
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