Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Friday, August 08, 2008
Auction-Rate Debt Buyback, Now What? / Interest-Rates / Credit Crisis 2008
By: Paul_Lamont
With news of UBS' $19 Billion dollar buyback of frozen auction-rate debt , we expect former clients of UBS ( Merrill Lynch, Citigroup, Wachovia and Bank of America, too ) to begin looking for secure places for their cash. Some may even be considering CDs. We would like to point out to investors that CDs (in fact all deposits) allow banks to borrow short and lend long.Read full article... Read full article...
Thursday, August 07, 2008
UK Interest Rates on Hold as Economy heads towards Stagflation / Interest-Rates / UK Interest Rates
By: Nadeem_Walayat
The Bank of England paralysed by fear of igniting a wage price spiral amidst surging inflation is again expected to keep UK interest rates on hold at 5% despite the UK housing market plunging off the edge of a cliff towards what will be come to be known as the UK house price crash of Summer 2008. The UK economy is fast decelerating towards a recession during mid 2009 GDP data which would normally call for rate cuts to start now, which would require surprisingly benign yet to be released inflation data for July.Read full article... Read full article...
Wednesday, August 06, 2008
Credit Crisis Continues as Banks Sell Assets to Cover Losses / Interest-Rates / Credit Crisis 2008
By: Money_Morning
Keith Fitz-Gerald writes: "Have we seen the worst from the financial sector?"
The question - a very good one - came from an audience member following my global investing presentation at the Agora Wealth Symposium in Vancouver, British Columbia. During my entire time there, the interest in the ongoing credit crisis was intense.
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Wednesday, August 06, 2008
Fed's Next US Interest Rate Move is Down / Interest-Rates / US Interest Rates
By: John_Browne
Yesterday, the Fed surprised no one and left its key rates unchanged and gave no indication that the committee was preparing to raise or lower rates anytime in the foreseeable future. As always, the market reactions were much more interesting and unpredictable. In this case, bond markets barely changed, the U.S. stock market jumped, and Euro futures strengthened slightly against the U.S. dollar.Read full article... Read full article...
Tuesday, August 05, 2008
Talk of US Rate Hikes is Comical Says Pimco Chief Bill Gross / Interest-Rates / US Interest Rates
By: Mike_Shedlock
Yahoo!Finance is reporting Fed Can't Raise Rates .The Federal Reserve's decision to hold the line on interest rates was the only move the central bank could make considering the state of the US economy, PIMCO chief Bill Gross said on CNBC.
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Tuesday, August 05, 2008
US Financial System in Crisis as Government Hides the Truth to Prevent Bond Market Panic / Interest-Rates / Financial Crash
By: Money_and_Markets
Martin Weiss writes: With America's economy sinking rapidly into recession, with much of America's financial system teetering on the brink, and with a presidential election just three months from today, our leaders in Washington are under siege.
What are they saying behind closed doors? What worst-case scenarios are they contemplating? What contingency measures are they debating?
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Tuesday, August 05, 2008
US Blackmailed By China on Fannie and Freddie Bailout / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Fannie's Mudd Soothed Asian Investors as Bonds Rose . Fannie Mae Chief Executive Officer Daniel Mudd was sitting down to a glass of wine with his wife at their Washington home around 10 p.m. on Saturday July 12 when Treasury Secretary Henry Paulson called.
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Monday, August 04, 2008
Homebuilder Credit Defaults Swaps Review / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
In light of the WCI Chapter 11 Bankruptcy Filing this morning, inquiring minds have been asking "Who's Next?" While that question cannot be directly answered, we can take a look at how the credit market players perceive the situation.
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Monday, August 04, 2008
US Treasury Bonds Auctions to Put Dampener on Bond Market Rally / Interest-Rates / US Bonds
By: Levente_Mady
In spite of the bounce in the financial stocks, the negative news continues to pour in on the earnings (or lack thereof) front in that sector. Last week we saw Merrill Lynch in the news again as they wrote off another $5 billion+ in assets. Leading basket cases Fannie and Freddie will be rescued by the government but that will not be much help to the shareholders. Ongoing problems on this front are likely to support the bond market. Read full article... Read full article...
Friday, August 01, 2008
Last Warning? Negative Real US Interest Rates Igniting Inflation / Interest-Rates / Credit Crisis 2008
By: Adrian_Ash
"...First warning? Gold doubles as the Greenspan Fed makes real interest rates negative for the first time in 25 years. Now his successor is at it again..."
SO ALAN GREENSPAN – former chairman of the Federal Reserve – thinks this equals the Great Crash, if not out-bads it.
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Friday, August 01, 2008
Greenspan the Credit Crunch Maestro Won't Face the Music / Interest-Rates / Credit Crisis 2008
By: Peter_Schiff
In an interview yesterday on CNBC, former Fed Chairman Alan Greenspan cast his eyes on the charred landscape of the national real estate market and offered high-minded criticisms of the obvious excesses and irrationalities that brought on the devastation. Greenspan's attitude was akin to a retired drug dealer lamenting the urban blight caused by rampant addiction. He noted that housing prices were still too high, that too many homeowners were upside down on their mortgages, and that Fannie Mae and Freddie Mac were accidents waiting to happen. Methinks the serial bubble blower doth protest too much. Read full article... Read full article...
Thursday, July 31, 2008
Fed Massive Injections of Liquidity to Fuel Surging Inflation / Interest-Rates / Inflation
By: Michael_Pento
It amazes me how many investors are now concerned about a deflationary spiral occurring in commodity prices. They site oil prices that are slightly off all time highs or a falling CRB index as their examples. While it is true many commodities are off historic highs, it is hardly reasonable to project a continuation of falling asset prices given the state of the banking sector and the consumer.
I know that sounds counterintuitive given the current state of the credit crisis, but it is exactly that crisis and the Fed's response to it, which will soon forge the path to inflation rates the likes of which have never before been experienced in this country's history. The most important question investors must ask themselves is how inflationary is the current 2% Fed Funds rate?
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Tuesday, July 29, 2008
U.S. Treasuries: Worse than the US Dollar! / Interest-Rates / US Bonds
By: Mike_Stathis
That's right. You read it correctly. Now why would I say something that even most “experts” would laugh at? Because I want to point out once again how so many out there are in the dark, even the so-called experts; you remember, the guys who missed this entire meltdown. Of course, now with so many banks in a dangerous position, I've seen many advisers change face and jump on the doom bandwagon. Read full article... Read full article...
Tuesday, July 29, 2008
MINUTES OF MONETARY POLICY COMMITTEE MEETING 9 AND 10 JULY 2008 / Interest-Rates / UK Interest Rates
By: BoE
The Bank of England Act 1998 gives the Bank of England operational responsibility for setting interest rates to meet the Government’s inflation target. Operational decisions are taken by the Bank’s Monetary Policy Committee. The Committee meets on a regular monthly basis and minutes of its meetings are released on the Wednesday of the second week after the meeting takes place. Accordingly, the minutes of the Committee meeting held on 6 and 7 August will be published on 20 August 2008.Read full article... Read full article...
Tuesday, July 29, 2008
Paulson's Covered Bond Proposal to Rescue US Housing Market / Interest-Rates / US Housing
By: Mike_Shedlock
Many people are asking about Treasury Secretary Paulson's Covered Bond Plan .Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. threw their support behind Treasury Secretary Henry Paulson's effort to spur covered bonds as a new source of mortgage financing.
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Monday, July 28, 2008
US Treasury Bonds Remain Range Bound / Interest-Rates / US Bonds
By: Levente_Mady
The Treasury market closed the week with slightly higher yields after a rally attempt that fizzled on Friday. With energy trading settling down somewhat – on the crude oil front anyways, the bond market started focusing on other news to drive the trading activity this past week. Earnings season on the stock side made for choppy trading along with continued problems in the financial sector. In spite of more grim news on the earnings front and a list of bankruptcy candidates in the financial sector that is multiple pages long, stocks started the week in relatively decent shape. Read full article... Read full article...
Thursday, July 24, 2008
Bank of England Hawkish on UK Interest Rates Despite Slowing Economy / Interest-Rates / UK Interest Rates
By: Victoria_Marklew
The relentless stream of negative economic news out of the UK has the headline writers dredging up the old specter of stagflation - a "stagnant" economy with rising inflation. While the UK isn't at the point of recession yet, and there is reason to suppose that the headline inflation rate will start to ease come year's end, the outlook is certainly deteriorating. All told, it was no surprise when the Bank of England's (BoE) nine-member Monetary Policy Committee (MPC) left the repo rate unchanged at 5.0% on July 10. Read full article... Read full article...
Thursday, July 24, 2008
Evidence of the US Banking System Teetering on the Brink of Collapse / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
1. Paulson appears on Face The Nation and says "Our banking system is a safe and a sound one." If the banking system was safe and sound, everyone would know it (or at least think it). There would be no need to say it. 2. Paulson says the list of troubled banks "is a very manageable situation". The reality is there are 90 banks on the list of problem banks. Indymac was not one of them until a month before it collapsed. How many other banks will magically appear on the list a month before they collapse?
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Wednesday, July 23, 2008
US Treasury Bonds at Risk Under Weight of Debt Moutain / Interest-Rates / US Bonds
By: Alex_Wallenwein
Instead of building its full faith and credit, the United States government is becoming increasingly faith less and is losing credit by the second while sucking individual Americans into ever-greater debt. Yet, against all expectations, Americans seem to be waking up
Wealth cannot be borrowed. For some not-so-unknown reason, Americans seem oblivious of that fact. The reason: they have been conditioned to view debt as ‘money' for decades on end, while TV commercials showed them since childhood that all you need for the good life is a credit card from so-and-so bank – and a golden one, at that.
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Tuesday, July 22, 2008
Paulson Thumbs His Nose At Congress, Pushes Creation of Covered Bonds / Interest-Rates / Credit Crisis 2008
By: Mike_Shedlock
Bloomberg is reporting Paulson Pushes Covered Bonds, Sidestepping Congress . Treasury Secretary Henry Paulson, aiming to create a new source of U.S. mortgage financing, wants banks to start issuing covered bonds without waiting for legislation from Congress.Read full article... Read full article...