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Bonds Can Still Perform When Interest Rates Rise

It has long been my contention that for income-oriented investors, bonds can provide a dependable and consistent stream of income, and principal protection when held to maturity. Bonds–whether they are municipal, government or corporate–can also provide for compounded growth opportunities when the …

Why a top Silicon Valley VC firm just invested in a company that makes chewable coffee

Dixon drinks Soylent, the chalky nutrition drink favored among startup workers, then ingests another startup favorite: nootropics.<p>The so-called "Smart Drugs" produced keep Dixon alert as everyone else is sagging after a heavy lunch.<p>On a Monday, it's a combination called "Sprint" to power him …

Negative interest rates in Switzerland have started a bizarre debate among economists over whether cash should be abolished

Switzerland already has a -0.75% "overnight" rate for banks that draw from it. One Swiss bank plans to charge customers negative interest if they keep cash in their accounts.<p>The European Central Bank now looks like it will also go further negative in its attempts to cheapen the euro against the …

IMF's yuan inclusion signals less risk taking in China | Reuters

SHANGHAI/NEW YORK (Reuters) - When the International Monetary Fund agrees on Monday to add the Chinese yuan to its reserves basket in the biggest shake-up in more than three decades, the IMF can afford itself a congratulatory nod.<p>A customer counts Chinese Yuan notes at a market in Beijing, August …

China's shadow banking risk shifts to booming bond market | Reuters

SHANGHAI (Reuters) - A year after China’s financial regulators squared up to the systemic perils of “shadow banking”, the threat is shifting to a booming corporate bond market, and risky borrowers’ debt is finding its way into products aimed at retail investors.<p>An electronic display showing the …

Commodity prices and exchange rates

The dramatic decline in the prices of a number of commodities over the last 16 months must have a common factor. One variable that seems to be quite …

Opinion: The bond market is no longer a safe haven for investors

• In an absurd sign of the times, 12 European countries, including France, Germany and Switzerland, are now issuing bonds at negative interest rates. …

Don’t Fight the Fed: It’s Lower for Longer for Bond Yields - WSJ

Bond investors aren’t fighting the Fed, but they aren’t panicking about higher interest rates, either.<p>Futures-market bets on rising U.S. interest rates have reached a six-month high, reflecting expectations that the Federal Reserve will raise short-term rates next month for the first time since …

Federal Reserve

Are your investments safe from US interest rate lift-off?

UK investors in the FTSE 100 have been lulled into a false sense of security by record low interest rates, and could be ill prepared by the speed of market reactions.<p>Global markets were shocked last week after a strong jobs report in the US made a December rate rise all but certain. Investors have …

U.S. Stock Outlook Turns Murkier

While a recent rebound has reassured investors, some say stocks may not keep pace with corporate earnings<p>Stocks hit a speed bump late last week, raising questions about the durability of a roaring autumn recovery.<p>While the rebound from the late August lows has reassured anxious investors, it has …

Japan, China Shares Hit 2½-Month Highs

Weak yen boosts Japan; China investors hope for more stimulus after weak export data<p>Shares in Japan and Shanghai rallied to fresh 2 1/2-month highs Monday, lifted by a weaker yen and stimulus hopes respectively, while worries about China’s slowdown drove other Asian markets lower.<p>Japan’s Nikkei …

Stock Markets

Friday jobs report making bond-market investors panicky

Investors are bracing for a spike in volatility in the bond market, as October’s official jobs report, scheduled for Friday morning, is viewed by …

Banks still struggling to make money in the bond market | Reuters

LONDON (Reuters) - Banks struggled again to make money trading bonds, currencies and commodities in the third quarter, as regulatory changes squeezed liquidity and intensified the pressure to cut costs, staff and activity.<p>The Thames Barrier is seen across the River Thames with the Canary Wharf …

Bond Traders Start to Buy Into Yellen's Path on Interest Rates

The bond market is beginning to warm up to Federal Reserve Chair Janet Yellen’s message on interest rates.<p>Friday’s better-than-forecast jobs report …

Fed’s Williams: Next Step for Fed Is to Raise Rates, Data Decides When

NEW YORK—Federal Reserve Bank of San Francisco President John Williams said Saturday he’s still eyeing a central bank rate rise, noting it is important to get the process going so that future increases can come at a gradual pace.<p>But the official, who holds a voting role on the interest-rate-setting …

Economics

Stock Investors Position for Rate Increase After Strong Jobs Report

Broad indexes finish little changed, but utilities and financials swing sharply<p>Investors geared up for the possibility that the Federal Reserve will raise interest rates next month following a stronger-than-expected jobs report.<p>Broad stock-market indexes were little changed Friday, but underlying …

Stock Markets

China to Lift Ban on IPOs

Move comes after Shanghai stock-market rally<p>SHANGHAI—China said Friday it will shortly resume initial public offerings, a significant expression of confidence from Beijing that a raft of emergency measures it launched four months ago has restored support for the world’s second-largest stock …

U.S. Stocks Slip From Three-Month High on Interest Rate Concern

U.S. stocks retreated from a three-month high, after data on payrolls and remarks from Federal Reserve Chair Janet Yellen lifted bets that the …

Stock Markets

Activist Investor Bill Ackman Plays Defense

With about $2 billion in losses on Valeant, Mr. Ackman struggles to salvage his big bet<p>William Ackman woke up in a Toronto hotel room well before dawn on Tuesday last week in a state of distress. One of his hedge fund’s biggest bets was going badly awry. He had already lost almost $2 billion on …

MSCI Inclusion Could Fuel Demand for Some Chinese Tech Majors

China will be most affected by MSCI’s decision as many of the country’s top companies trade abroad<p>MSCI Inc.’s expected decision to add U.S.-listed Chinese companies to some of its most heavily tracked stock indexes this month could give a boost to some of China’s prominent technology champions, …

Stock Markets

What internationalization of China's yuan means for the world economy

China’s currency, the yuan, recently (and briefly) became the world’s fourth-most-used form of payment, behind the U.S. dollar, euro and pound …

Bond Market Rattled as Fed Revives Bets on 2015 Rate Increase

It just got a lot tougher for bond traders to rule out a Federal Reserve interest-rate increase in 2015.<p>The Fed’s Wednesday statement validated the …

High leverage shifts to China's bond market after equities deflate | Reuters

SHANGHAI (Reuters) - Just when investor fears over plunging Chinese stocks appear to be calming down, the country’s frothy corporate bond market is stirring concerns it could be the next domino to fall.<p>An investor sits in front of an electronic board showing stock information at brokerage house in …

Fed looks at way to shift big-bank losses to investors

The Federal Reserve's proposal put forward Friday means the mega-banks would have to bulk up their capacity to absorb financial shocks by issuing equity or long-term debt equal to prescribed portions of total bank assets.<p>The idea is that the cost of a huge bank's failure would fall on investors in …

Chinese move underlines global reliance on low interest rates to lift growth

China’s sixth interest-rate cut in a year shows how hard it is to keep the world’s second-biggest economy growing vigorously while attempting one of …

Economy

Time for the Fed to hike rates so borrowers pay the real cost of money

<i>Luc Vallée is chief strategist at Laurentian Bank Securities.</i><p>Janet Yellen, chair of the U.S. Federal Reserve, and other members of the Federal Open Market Committee (FOMC) decided against raising U.S. interest rates on Sept. 17. The FOMC will meet again this week to reconsider. What should we …

China’s Central Bank Moves to Spur Economic Growth

PBOC cuts benchmark one-year lending, deposit rates by 0.25 percentage point<p>BEIJING—Days after reporting its worst economic performance since the global financial crisis, China unleashed a one-two punch to prop up growth while also sweeping away a major control on how banks set deposit rates.<p>The …

Central Banks

Lack of economic muscle? U.S. at mercy of China, strong dollar

WASHINGTON (MarketWatch) — The U.S. economy used to be like a muscleman surrounded by 98-pound weaklings. It regularly flaunted its power and was …

Bond Market Now Divided Over Whether Fed Will Even Lift in March

First Treasuries traders were banking on September for the Federal Reserve to raise interest rates. Then they turned their focus to December. Now …

Will Treasury Ever Go Negative?

As the U.S. government has auctioned off a string of short-term debt at a yield of zero lately, one question is bubbling up in the bond world: Is time ripe for the Treasury to allow bill auctions sold at negative interest rates?

Dow Jones