Description: More than a few experts are convinced that massive U.S. government spending will ultimately wreak havoc with the bond market, as both the country and companies are forced to pay higher borrowing costs to satisfy creditors. Money & Investing editor Jonathan Burton reports. Source: Marketwatch.com ╨ video report Date: 06/11/2010 Link: http://www.marketwatch.com/video/asset/this-week-in-mutual-funds-bonds-may-come-unglued/FB20089B-0046-4818-BE91-BD13A0C21BD6 Questions for… Read more »
Posts Tagged: Bonds
Treasury Two-Year Notes Gain on Speculation Crisis to Sink Euro
Description: U.S. two-year notes had their first three-week winning streak since January as demand for the safest assets rose on speculation Europe’s sovereign-debt crisis will damp growth and lead to disintegration of the euro. Source: Bloomberg.com  Date: 05/15/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=a3uJ_8cLNk.A Questions for discussion: What is the yield curve? How is it used to interpret… Read more »
Where To Invest When Rates Rise
Description: As the economy improves, rate hikes loom, says Michael Cuggino, manager of the Permanent Portfolio fund family. He tells Jonathan Burton how stock and bond investors can blunt the impact of rising rates and take advantage of global growth. Source: Marketwatch.com – video report  Date: 03/31/2010 Link: http://www.marketwatch.com/video/asset/where-to-invest-when-rates-rise/2F40294E-9670-4996-93C6-F8553FE0AFE3 Questions for discussion: Summarize the… Read more »
Increase in March Employment Shows U.S. Recovery Is Broadening
Description: Employment in March grew by the most in three years, representing a turning point for the labor market that will help broaden the U.S. economy as it recovers from the deepest recession in seven decades. Source: Bloomberg.com Date: 04/03/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aDCWdea8_JO0 Questions for discussion: Summarize the reasons given for economic and stock market optimism?… Read more »
Are Municipal Bonds the Next Bubble to Pop?
Description: America’s states and cities may be going bankrupt, but investors shouldn’t worry. Dow Jones Adviser columnist James Altucher explains. Source: Marketwatch.com – video report  Date: 03/23/2010 Link: http://www.marketwatch.com/video/asset/are-municipal-bonds-the-next-bubble-to-pop/5D0A58DD-9E95-4B20-8A3E-8B67E3F593DA Questions for discussion: Summarize the arguments presented in favor of buying municipal bonds. Do you agree with James Altucher’s opinion about the risk to investors?
U.S. Economy: Profit Surge May Help Broaden Expansion
Description: The fastest pace of economic growth in six years during the final three months of 2009 fueled a surge in corporate profits that may set the stage for job gains and a broadening of the U.S. recovery. Source: Bloomberg.com Date: 03/26/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=aorqXG5sfGeY Questions for discussion: Summarize the reasons given for economic and stock… Read more »
The downside to the global economy
Description: Fortune editors explain how problems in places like Dubai and Greece are affecting U.S. markets. Source: CNNMoney – video report  Date: 02/10/2010 Link: http://money.cnn.com/video/fortune/2010/02/10/f_sl_greece_euro.fortune/ Questions for discussion: Summarize the impact that global debt levels and deleveraging may have on domestic as well as international investing strategies? What strategy would you advise – particularly… Read more »
Junkyard treasure:High-yield bonds saved from the scrapheap
Description: High-yield corporate bonds are being priced as if few of these companies are going out of business, evidence that income-seeking investors are increasingly accepting the greater risks attached to low-rated debt. Source: Marketwatch.com Date: 02/14/2010 Link:Â http://www.marketwatch.com/story/high-yield-bonds-show-investors-the-money-2010-02-12 Questions for discussion: Summarize the current market conditions for corporate bonds. How should financial managers deal with… Read more »
Corporate Bond Spreads Rise Most Since November: Credit Markets
Description:Â Corporate borrowing costs are rising at the fastest pace in more than two months on concern that worsening government finances will slow the global economy and make it harder for companies to meet debt payments. Source: Bloomberg.com Date: 02/08/2010 Link: http://www.bloomberg.com/apps/news?pid=20601103&sid=auWwLKPsLRFM Questions for discussion: Summarize the report and the impact this trend will have… Read more »
U.S. deficit biggest since 1945
Description: It’s officially official. The Obama administration on Friday said the government ran a $1.42 trillion deficit in fiscal year 2009. Source: CNNMoney.com Date: 10/16/2009 Keys: Bond valuations (p249), stock market (p281) Link:Â http://money.cnn.com/2009/10/16/news/economy/treasury_deficit/index.htm?postversion=2009101617 Questions for discussion: How might this information influence financial managers planning for the near future? Explain your answer. If government bonds… Read more »
