A hedge fund managed by Bear Stearns is scrambling to sell large amounts of mortgage-backed bonds in a potentially troubling sign for the broader mortgage-backed bond market, The Wall Street Journal reported in its online edition.
Like a cyclone, the rate move in the global bond market is unsettling everything in its path and leaving a new high-tide mark for credit worldwide.
"Cash is king" in today's bond market -- if rates keep rising. That's the opinion shared by Joseph Balestrino, senior vice president and senior portfolio manager at Federated Investors, and Tony Crescenzi, chief bond market strategist at Miller Tabak. The bond mavens advised "Morning Call" viewers how to play the market.
In an interview with CNBC, former bond bull Gross said strong global growth will be a drag on long-term bond yields.
European stock markets look set to carry over negative sentiment from the previous week, as fears over rising borrowing costs erode confidence in the recent equity bull run, but investors are over reacting to the selloff in bonds, according to Stephen Pope, Head of Equity Research at Cantor Fitzgerald Europe.
Stocks futures are wrestling with another surge in bond yields this morning and for now have the upper hand as futures edge into the positive zone. Asian markets closed lower overnight and European stocks are weaker.
Are you thinking what I’m thinking? There are plenty of worried-looking people wandering around in trading rooms this morning.
Long-time bond bull Bill Gross, just a year after declaring the end of the bear market for U.S. Treasuries, Thursday conceded the snappy pace of global economic growth will likely keep bonds on their heels.
Stocks are struggling ahead of the opening as a selloff in the Treasury market pushed the yield on the 10-year above the key 5% level for the first time since last July. May sales results from chain stores are rolling in and merger activity continues to make headlines.
David Reilly, director of portfolio strategy at Rydex Investments, told CNBC’s “Power Lunch” that rising interest rates may take a bite out of equities in the short-term.
Rising rates trump all else this morning as Wall Street braces for a downhill slide on the opening. European markets are broadly lower, continuing their downtrend after the European Central Bank raised interest rates by a quarter point to 4%, as expected. Chinese stocks closed higher and Asia's other markets were mixed.
Wall Street is heading for a down day after China's move to cool its overheated stock market with a tax hike drove Shanghai shares down 6.5% and pulled the floor out of stock buying around the world. Asian markets closed lower and European stocks are down across the continent. Some buyers appear to be moving into U.S. Treasurys where rates are slipping this morning.
Junk-debt issuance is up 27% over 2006, and investment-grade credit slid 14%, according to Lehman Brothers. Is a junk-bond bubble in the making? Dan Fuss, vice chairman at Loomis Sayles, and Jack Malvey, chief global fixed income strategist at Lehman Brothers, agree that a cycle is indeed coming to an end -- the question is how big the decline will be. The strategists joined "Street Signs" to offer their views -- and to reassure viewers that the "crash" might not be as bad as some fear.
Stock futures are aiming at higher territory this morning after yesterday's rocky session. Asian markets were lower and Europe is mixed, but a round of merger activity has stock prices perking up on Wall Street. Existing home sales data will be a big focus this morning after yesterday's report of a surprising 16% jump in April new home sales.
About ten years ago, my editors dubbed me the Bond girl... for all the wrong reasons. It was my coverage of debt capital markets that earned the nickname. Since then, I've had an affection for fixed income markets. Yes, bonds are rather dull and poorly understood but they are frankly one of the most important things you need to know about, in order to make sound financial decisions.
High-yield bond investor focus is often on emerging markets. But on “Street Signs,” Pioneer Investments’ Andy Feltus, portfolio manager of the $2 billion Pioneer Global High Yield Fund, told CNBC’s Erin Burnett that there is more value in the U.S.
William Gross, chief investment officer and founder of Pimco’s Total Return Fund, told CNBC’s “Street Signs” that he expects the Federal Reserve to cut interest rates to about 4% by year end.
The ISM index fell to 50.9 from 52.3 in February. How are bonds reacting to Monday's lukewarm ISM number? Kevin Ferry, chief market strategist at Cronus Futures Management joined Liz Claman on “Morning Call.”
Losses on U.S. mortgage bonds issued in 2006 against subprime loans could be as high as 8%, the highest forecast in recent memory, an executive said on Thursday.
Kevin Giddis, managing director of fixed income capital markets for Morgan Keegan, told CNBC’s “Power Lunch” that the Federal Reserve’s concentration on inflation is good news for bond investors.