A News Digest For Today
January 27, 2010
Rather than give you another daily dose of bad news about Tishman or some other poor sap who blindly overpaid for an asset with OPM, today we present you the following interesting headlines:
1) 1-Month Treasury Bills trading negative again. This is only the 2nd or 3rd time this has happened since Lehman went under. The [...]
3-Month Treasury Bill Yields Turn Negative
November 19, 2009
This is not a good sign. The last time this happened was last year right around the Lehman blow up. The fact that yields are negative on the 3-month bills indicates that investors are staying on the sideline. Which raises the question of why (and how) equities have rallied so much if the money is [...]
Read More >>Bill Gross’s Investment Outlook
October 27, 2009
Here is an excerpt from the November outlook newsletter of PIMCO’s Bill Gross. The newsletter can be viewed in its entirety here, where he discusses the effect of leverage on asset values, as well as what sort of numbers the US economy will need to put up to get the FED to raise rates. This view differs [...]
Read More >>CRE Shoe Next NOT To Drop?
October 21, 2009
Retail Traffic has an article out citing economists on why commercial real estate won’t be the next shoe to drop. Certainly commercial real estate won’t have the impact that the sub-prime housing crisis had, and will be more of a bank-level problem than at the consumer-level, but credit is ultimately what is needed.
Take earnings at [...]
Unemployment and Deflation
October 2, 2009
A flurry of economic data was released this week. Contrary to the recovery that many are talking about, the data is heading in the opposite direction for the most part. We’re seeing some signs of stabilization in some numbers, and actual rebounds in others. Long story short though, no rebound is yet consistent enough to [...]
Read More >>Deflation Fears Emerge
September 29, 2009
One of our recent posts discussed housing tax credits and the potential for them to cause deflation. Bill Gross of PIMCO, one of the most well known bond investors is now increasing his position in longer-term government debt, namely 5 and 10 year treasuries, as a hedge against deflation. The loser in his fund are [...]
Read More >>East Meets West
June 29, 2009
Every time things seem to get out of control, there is always an excuse why it can be sustained. During the dot-com run up, we had the “new economy”. During the boom cycle of the housing run up, banks, investors, bankers, builders, the media, and everybody in between had their own reason why the market [...]
Read More >>Operation Print Money Kicks Off Today
March 25, 2009
The Federal Reserve announced that it will be taking extraordinary measures to keep the system flush with capital, and today it will begin the first operation of a $300B campaign to buy Long Term treasuries. These efforts should drive yields down and loosen credit in the short term.
A report in Bloomberg though indicates that while [...]
Treasury Yields Create Defeasance and Yield Maintenance Nightmare
December 11, 2008
Treasury yields have plummeted to near nothing, and in some cases they have even gone negative for the first time as investors are searching frantically for the financial equivalent of a panic room.
To commercial real estate owners who are looking to sell, or refinance, this has created yet another problem, the issue of maintaining yield or [...]
