Meditor, a London-based hedge fund that managed $3.1 billion as of July, is liquidating its main funds, according to a letter obtained by CNBC.com» Read More
Fiscally distressed governments across the country may have gotten a troubling blueprint this week for getting out of their respective messes.
In allowing Detroit to move ahead with its planned bankruptcy filing, federal Judge Steven Rhodes sent a message to municipal bondholders that their investments are not risk-free and in fact could suffer dramatic losses
Bond pros are worried about the implications.
"If they allow Detroit (general obligation) bondholders to be impaired significantly, this could cause in Michigan and maybe also municipalities across the country their GO bondholders to have the perception that this could happen anywhere," said Patrick Stoffel, municipal bond analyst at Wells Fargo.
"That could increase borrowing costs for municipalities and issuers," he added. "It could cause prices of GO bonds to be affected in the market, and so there are some possible wide-ranging implications from this Detroit bankruptcy."
Happy Thursday. Just counting the days down until Jobs Friday.
What happens when the Federal Reserve is holding interest rates at unnaturally low levels? All kinds of bad things. (Chris Whalen/Breitbart)
For those considering becoming a bank teller, prepare to spend time waiting in line—the welfare line. (Washington Post)
Deutsche Bank is committing about $2.3 billion to prove it's sorry that some of its employees rigged interest rates.
The German bank announced today it would pay about $983 million (725 million euros) as part of an agreement with the European Commission to resolve investigations into the submission of interbank offered rates for both the euro and yen.
Deutsche Bank also said it was investing about $1.35 billion (1 billion euros) to "elevate its systems and controls to best in class," according to an internal memo sent to employees today.
"Consistent with our ongoing review, the commission's investigation found evidence of past misconduct on the part of a small number of individuals who acted in breach of our values and beliefs," Jürgen Fitschen and Anshu Jain, co-CEOs of Deutsche Bank, wrote. "This misconduct disappoints us profoundly."
Bill Gross, co-head of the world's largest bond manager, repeated his call that interest rates would remain low for at least two more years.
"Our primary thrust has been to focus on what we are most (although not totally) confident about, that the Fed will hold policy rates stable until 2016 or beyond," Gross, co-chief investment officer of $1.97 trillion Pimco, wrote in a monthly note to clients Tuesday.
Gross made a similar pronouncement in July and has so far been right—interest rates are still near zero. At the same time, Pimco's largest mutual fund, the $247 billion Total Return Fund Class A, has struggled this year relative to other asset classes, especially stocks. It's down 3.2 percent year to date through November.
Kenneth Brody, the co-founder of $8.2 billion hedge fund firm Taconic Capital Advisors, plans to retire in January after nearly 15 years at the firm, according to a letter sent to investors Tuesday.
Brody, 70, will remain a principal and advisor to the multi-strategy and event-driven firm starting January 1. He will also remain a "significant" investor, according to the note.
Co-founder Frank Brosens will run the New York-based shop with chief investment officer Chris Delong. A spokeswoman for Taconic declined to comment.
(Read more: Hedge funds play buy-and-hold, and lose: Report)
Happy Wednesday. They're lighting the tree tonight in Rockefeller Center, and we're lighting up another Morning Six-Pack:
Memo to the rich folks: Get ready to start paying more taxes, because even Pimco's Bill Gross thinks you should. (Wall Street Journal)
The correction boat is getting a little crowded, but there's one more big Wall Street firm looking to climb aboard. (USA Today)
Whether it's just Wall Street market experts getting cute or there's something more scientific at play, the idea that the S&P 500 will finish 2014 at, yes, 2,014 has gained another convert.
Adam Parker, the chief market strategist at Morgan Stanley, just raised his target for the index next year nearly 10 percent from the original 1,840. He joins John Stoltzfus at Oppenheimer, who two weeks ago issued the first "2,014 in 2014" call.
Both projections suggest not merely a convenient and catchy forecast but also a decidedly bullish bent that the market can build on the momentum of a year—with nearly a month of trading left—where a 30 percent gain is not out of the question.
"Since last March, we have been sanguine on U.S. equities," Parker said in a note to clients. "Our logic has been driven more by lack of a bear case than the strength of the base case."
In the Stoltzfus call, he arrived at the number as a midpoint between two models the firm uses to project market price points.
Harvard, Yale, Stanford and other elite universities may help shape some of the brightest minds in the country, but some of their endowment investment returns can look something less than brilliant.
Harvard, Brown, Cornell, Stanford and Yale all under-performed a classic allocation of 60 percent stocks and 40 percent bonds and even benchmark returns for hundreds of other colleges and universities, according to a new ranking of five-year returns compiled by recruitment firm Charles A. Skorina & Co.
Of course, such an analysis isn't perfect. Comparing complex, multi-billion dollar portfolios that attempt to balance risk management with strong performance is inherently difficult and much of the underlying structure of the endowment investments are kept private.
That doesn't mean the relatively crude analysis isn't interesting.
Borrowing money at bargain basement interest rates may seem now like a nice way to pad profits and share prices, but it may not be as much fun in a few years.
Companies face three consecutive years where more than $1 trillion each will come due in the form of maturing bond issues that have been used during the free-wheeling, zero-interest days courtesy of the Federal Reserve.
When that happens, corporations will have to choose between rolling over, or refinancing, debt at interest levels likely to be higher than the present day or using cash on their balance sheets to pay off their creditors.
The calculus from both borrowers and the Fed assumes that rates will still be low enough to roll the debt, and economic growth will be strong enough to absorb the costs of paying it down.
It's a high stakes bet that market experts hope will pay off.
Happy Monday. Congratulations for surviving Black Friday, a dark day indeed for humanity.
In case you haven't heard, the first-year of Obama Part II hasn't exactly gone as planned. Democrats think the reboot needs a reboot. (The Hill)
John Carney is a senior editor for CNBC.com, covering Wall Street and finance and running the NetNet blog.
Jeff Cox is finance editor for CNBC.com.
Lawrence Delevingne is the ‘Big Money’ enterprise reporter for CNBC.com and NetNet.
Stephanie Landsman is one of the producers of CNBC's 5pm ET show "Fast Money."
The unofficial odds are rising that the Fed will announce taper plans at its December meeting.
Three Wall Street trade groups sued the Commodities Futures Trading Commission to stop tough overseas trading guidelines they fear.
Paid in the form of assistance programs, the funds are in effect a subsidy to the banking industry, The Washington Post reported.