Cascading copper prices have multiple root causes that lead to one conclusion: The anticipated global economic recovery may not be all it's cracked up to be.» Read More
The city of Detroit looks to emerge as at least a survivor if not a winner from its bankruptcy, with bondholders and future municipal borrowers the biggest losers.
That's the picture that has emerged from the troubled Michigan city's struggle to escape from its onerous debt load.
A restructuring plan Detroit filed to escape bankruptcy would impose haircuts of 80 percent or more to bondholders and, according to some analysts, provide a "precedent setting" template for future municipalities that face the same type of fiscal problems.
"Overall, the city's bankruptcy plan is more punitive to bondholders than other creditors," George Rusnak, national director of fixed income at Wells Fargo, wrote in an analysis of the Detroit plan submitted Feb. 21. "This could lead to higher borrowing costs for local governments, particularly in Michigan."
Prominent money managers are warning of a bubble in some technology stocks and recommending investors avoid emerging markets in favor of Europe.
"The high probability is when you look back on this period five years from now, you'll say some of these companies grew into their (earnings) multiples … but I think biotech and other areas in tech have seen multiple expansions beyond what we can justify beyond any kind of reasonable cash flow expectations," Doug Silverman, co-founder of $6.7 billion hedge fund firm Senator Investment Group, said Monday at the Portfolios with Purpose Awards Night in New York.
"You can only call it a bubble. But I have not guessed when it will end," Silverman added.
Rich Pzena of $23.7 billion Pzena Investments agreed.
"Yeah, I think we are in a bubble. I don't know if I would say it's broadly in tech stocks. I think it's in certain stocks. But the hype feels like we're in another Internet-type bubble like 1999," Pzena said.
Life just isn't getting any easier for Bill Gross.
Not so long ago known as the untouchable Bond King of the investment world, the Pimco founder now finds himself the subject of intense scrutiny, the most recent being over the enormous salary he receives to run the Newport Beach, Calif.-based firm.
Pimco trustee William J. Popejoy believes Gross' reported $200 million annual salary is out of line.
"I think his salary needs to be reviewed," Popejoy told CNBC.com. "I'm not suggesting he be replaced."
(Read more: Big investors warily eye Pimco after internal strife)
Happy Tuesday, which is always better than Happy Monday and certainly worthy of toasting with a Morning Six-Pack.
When you hear central bankers start talking about "forward guidance" to control interest rates, remember this: They usually don't know what they're talking about. (Quartz)
Why are Legos so popular in a world filled with mind-blowing high-tech games? Because they're not a mind-blowing high-tech game. (The Economist)
At some point over the next few years, the rate of money flow and inflation will start to catch up to each other, eventually sending the economy into a recession, according to a new analysis from banking analyst Dick Bove.
The good news in Bove's forecast is that the day of reckoning is probably four years away.
The bad news is that a 7 percent rate in the 10-year note looms out there, something that would put a severe crimp in the current debt-happy economy.
Friday's nonfarm payrolls report easily beat Wall Street expectations but may not be quite what Wall Street wanted.
The headline gain of 175,000 jobs offered hope that the weather slowdown from the past two months had abated. Yet the gains remained beneath trend and indicative that the economic picture for 2014 remains clouded.
Ultimately, the markets will decide.
Stocks wobbled through trading Friday and bond yields jumped as the first signs of inflation fear arose in trading.
Ultimately, it looks like the recovery will be put through additional tests before a final verdict is rendered. Check out the latest installment of NetNet TV as CNBC's Patti Domm and Jeff Cox deliberate the road ahead.
China has experienced its first corporate debt default in at least 17 years, and that might be the best thing that's ever happened to its bond market.
The country's path to meaningful financial reform depends on its ability to have a legitimate, open system, and a long tradition of refusing to allow weak companies to fail at any level has undermined that goal.
A top financial regulator has issued a warning about the rapidly growing segment of mutual funds that mimic more complicated hedge fund strategies.
"Alternative funds are the bright, shiny object. But they're a sharp object," Andrew Bowden, director of the Securities and Exchange Commission's Office of Compliance Inspections and Examinations, said during a speech at an investment advisor conference Thursday.
"The use of market valuation for illiquid securities in an open-ended mutual fund, which requires daily valuation and offers daily liquidity is fraught with risk," Bowden said. "If any of you are considering launching a mutual fund that uses alternative investments or strategies, I implore you to evaluate the reasonableness and the effectiveness of your controls."
Happy Monday. Stock market futures are looking kind of flat. "Flat" is a word we never like to use when talking about the Morning Six-Pack.
Don't like your 401(k) performance? Then take a look in the mirror, pal, because you just may be the problem. (Washington Post)
Investment firms have sharply increased the protection they buy against macroeconomic shocks, so called "tail risk" hedging for a potential armed conflict in Eastern Europe.
"There's been an uptick in hedging activity—we've definitely seen funds add to tail hedges in case the conflict escalates," said Jon Kinderlerer, who analyzes Credit Suisse's hedge fund client portfolios as head of risk and portfolio advisory for the bank's prime brokerage division.
In February, the percentage of funds that purchased "deep downside" protection—a financial bet that would gain if there is a significant drop in global stocks—hit a two-year low of less than 13 percent. That spiked to more than 17 percent as of Monday, according to Credit Suisse data.
Obama's approval rating may be low, but he still attracted big money Democrats at a fundraiser in Manhattan.
Wall Street's average cash bonuses hit the third highest on record, New York state's comptroller said on Wednesday.
A U.S. judge ordered Fabrice Tourre to pay more than $825,000 after a jury found him liable for defrauding investors.