Tag: investment management
For Fed, it’s not if, but when
More details on the coming Fed taper… There is a debate within the Fed as to whether to start in September or December… But there is no debate about starting this year… Binyamin Appelbaum of the New York Times reports in Fed Officials Are Divided Over When to Reduce Its Debt Holdings…
US spending falls short of rhetoric
The U.S. economy has displayed an interesting anomaly since the election… Although consumer confidence and the “CEO outlook” are up sharply, actual spending in the economy has lagged… Neil Irwin reports on this in the New York Times in Confidence Boomed After the Election. The Economy Hasn’t. … “Watch what they do and not what […]
All-stock deals hit rough patch
Some stock-for-stock M&A deals are getting tough… Clariant of Switzerland is merging with Huntsman of Texas… But now, activist shareholders of Clariant are teaming up to block the deal… Brian Blackstone of the Wall Street Journal has the story: Clariant, Huntsman Deal Under Threat From Activist Investors
Fed tips hand on taper timing
The Fed is signaling that its long-awaited taper will begin in the fall… Nick Timiraos of the Wall Street Journal has the story: Fed Eyes September Announcement on Balance-Sheet Reduction .
Puerto Rico bondholders come up short
In January 2016, the Puerto Rico Power Authority (PREPA) entered into a restructuring support agreement with the great majority of its bondholders… In February 2016, the Puerto Rico legislature passed a law allowing the restructuring to move forward… But the agreement has conditions which were never met… Time is the enemy of deals… And so, […]
China term structure signals pressure
Historically, an inverted yield curve in the United States has been the most reliable signal of a coming recession… Well, there is now an inverted yield curve in another important country: China… PIMCO portfolio manager Isaac Meng has a blog post on the topic: Is China’s Yield Curve Signaling A Further Economic Slowdown?
Flat curve flashes warnings for US economy
Jeff Sommer of the New York Times has a very clear new article Clouds Are Forming Over the Bond Market… The most reliable signal of a coming recession is an inverted yield curve… We’re getting closer…
There’s a right way to help steel
Veteran commentator Joe Nocera has a simple thesis in his new article in Bloomberg View, The Dumb Way for Trump to Help U.S. Steelmakers… An infrastructure spending plan in the U.S. would help steelmakers and steelworkers tremendously, but hopes for passage have faded… Section 232 sanctions against foreign steel make help steelmakers in the short run, […]
China’s leverage worrisome for US
Noah Smith, a professor at Stony Brook University, has a new article in Bloomberg View: Look East to Find the Source of Next U.S. Recession… China’s debt is now 300% of GDP, a clear danger zone…
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