Archive for January, 2016
Monday, January 4th, 2016
FOMC Vice Chairman Fischer spoke yesterday to the American Economic Association. Here are some comments on his speech from Action Economics:
05:04 GMT Fed VC Fischer: neutral rates will stay low for the "policy relevant future," he said in a speech Sunday on Monetary Policy, Financial Stability, and the Zero Lower ...
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Monday, January 4th, 2016
I hope everyone enjoyed a wonderful Christmas and New Year with family. I am back after a holiday hiatus.
Markets have not disappointed as a risk off trade has developed overnight as manufacturing data in China printed weaker than forecast. In addition increasing tension between Saudi Arabia and Iran has contributed ...
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Sunday, January 3rd, 2016
Inflows into ETFs set a new record in 2015 as investors seek alternatives to futures and swaps which have become expensive in response to regulatory changes.
Via Bloomberg:
A record amount flowed into global exchange-traded funds for a second straight year, BlackRock Inc. said, as investors increasingly are drawn to the products as ...
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Sunday, January 3rd, 2016
The heightened state of tension between Iran and Saudi Arabia has caused the price of oil to jump 3 percent in Asia time.
Via the WSJ:
By Jenny W. Hsu in Hong Kong and
Summer Said in Dubai
Jan. 3, 2016 9:52 p.m. ET
Oil prices jumped more than 3% in early Asia trade Monday ...
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Sunday, January 3rd, 2016
Federal Reserve Bank of Cleveland President Loretta Mester spoke to the annual meeting of the American Economic Association today (Sunday) and said that the pace of rate increases would be gradual and that the focus would be on the medium term outlook and not short term shifts in data.
I guess ...
Posted in Uncategorized | Comments Off on FOMC Logorrhea 2016 Style
Sunday, January 3rd, 2016
Yesterday I posted this article on the renewed tensions in the Middle East which spring from the Saudi execution of forty seven Shiites ,one of whom was a well known dissident cleric. That has led to a break in relations between Iran and Saudi Arabia. I know very little about ...
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Saturday, January 2nd, 2016
Saudi Arabia this weekend executed forty seven Shia Muslims in a move which prompted rioting in Teheran and sparked a crowd to attack the Saudi embassy in Iran. That will provide an interesting geopolitical backdrop to the first day of trading in 2016 when markets re open tomorrow evening.
Via the ...
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Saturday, January 2nd, 2016
The FT reports that investors sought safety in money market funds at year end and withdrew funds from high grade corporate bond funds. Junk bond funds reversed recent trends and experienced modest inflows.
Via the FT:
Investors made withdrawals for the sixth consecutive week from mutual funds and exchange traded funds buying ...
Posted in Uncategorized | Comments Off on Risk Aversion
Friday, January 1st, 2016
Via Reuters:
China looked set for a soggy start to 2016 after activity in the manufacturing sector contracted for a fifth straight month in December, suggesting the government may have to step up policy support to avert a sharper slowdown.
While China's services sector ended 2015 on a strong note, the economy ...
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Friday, January 1st, 2016
The FT posted an interesting article on credit shocks which bedeviled corporate bond investors in 2015.
Via the FT:
December 30, 2015
by: Eric Platt in New York and Gavin Jackson in London
The music kept playing in credit markets in 2015, but the tune definitely changed.
The return of corporate credit shocks jolted bond ...
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