Best of the Bond Market for June 22nd, 2012
FT: Moody’s downgrade hits 15 top banks
Fifteen of the biggest global banks were downgraded on Thursday by Moody’s Investors Service, adding to pressure on their borrowing costs and questions over their business models. Sober Look: Ratings Agencies Will Become Less Relevant for Bank Risk – Over time rating agencies will become less relevant for large bank credits as all major banks involved in capital markets will converge to roughly the same rating. Business Insider:
PIMCO Is Tweeting The Most Convoluted Nonsense These Days Economic Musings: What Bonds is Bond King Jeffrey Gundlach Buying?
DoubleLine added over $1bil of newly issued 20yr 3.5% pools and nearly $700mil of 30yr 4% jumbo pools. The 3.5% pools are borrowers with a rate of ~4%. Looking at total issuance for May, it appears DoubleLine bought about 1/3rd of the total issuance of these bonds.
MarketWatch: Treasurys fall after ECB eases rules
Yields on 10-year notes 10_YEAR +2.95% rose 5 basis points to 1.67%, after being down slightly through the Asian and European sessions. Yields on 30-year bonds 30_YEAR +2.53% added 6 basis points to 2.75%. Five-year yields 5_YEAR +3.14% increased 3 basis points to 0.7%.
The BondDad Blog: Inflation is Definitely Under Control — And Is Actually Signaling Bad Things
from a consumer’s perspective this is good because it means we’re not under a threat of massive inflation. But it also means a slowing economy. Finally, the last time we saw this alignment was before a recession — definitely not a good development on the statistics front.
Learn Bonds: Does Technical Analysis Work for Municipal Bonds?
If you find value in technical analysis when analyzing other markets then you can use it in a broad sense in the municipal bond market as well. However, the lack of consistent price data makes it less …
