Speaking of bond bubbles popping, in an interview with Bloomberg radio today, Bill Gross, said the Federal Reserve is not likely to raise interest rates for several years as employment continues to grow less than forecast (see unemployment report for today).
"The front end of the yield curve is the best segment for investors with the Fed on hold, Gross, said today in a radio interview on “Bloomberg Surveillance” with Tom Keene".
Friday, December 3, 2010
Bill Gross: Fed Will Not Raise Rates For Years
Subscribe to:
Post Comments (Atom)
Blog Archive
-
▼
2010
(1051)
-
▼
December
(28)
- Brazilian Companies Plan Big Global Expansions
- Brazil is Booming Everywhere; In Pictures
- The Sky is the Limit For China´s Sinopec Investmen...
- Europe, United States, Brazil and Canada Reached A...
- Brazil´s Lula Government: Real Currency Appreciate...
- The Petrobras Effect: Brazilian Stock Exchange Has...
- Brazil: Industry and Unions Team Up Against Imports
- Live Impressions From Brazil: Ethanol, Gasoline, E...
- Does the U.S. Want or Not a Weak Dollar: Triggers ...
- IMF: Europe Remains in Trouble; Worsening Problems...
- NO MORE SHOUTING: Google Kills the Caps Lock
- The Case for RIM: No iPhone in India
- Brazilian Inflation Jumps in November, Highest in ...
- Can Ireland Cut Budget Like Canada? No, Why Canada...
- Watch Bernanke's Interview With 60 Minutes; Says H...
- The Top Dividend ETFs For The End of 2010 (and 2011?)
- RBS Recommends Buying CDS Insurance Against Possib...
- Groupon Walks Away From $6B Acquisition by Google
- Twitter: The $3B Company
- Bill Gross: Fed Will Not Raise Rates For Years
- Dreadful Jobs Report: 39,000 vs Expected 159,000, ...
- Stiglitz on the Economist: The U.S. Is Entering A ...
- Is the Bond Bubble Finally Popping?
- Overheated Brazil Raises Bank Reserve Requirements...
- Money, Money, Money: Russia and Qatar Win 2018 and...
- European Crisis: Portugal Should Seek Loans from B...
- Volcker: U.S. Dollar Is In Danger, U.S. Example No...
- Fed To Name Today Who Received $3.3T During Crisis
-
▼
December
(28)
1 comment:
If true that interest rates will stay lower for a longer time period, it makes municpal bonds (munis) very attractive for those in the U.S.
However, one must use caution as many states, municipalities, etc. face horrendous budget squeezes and may have trouble meeting payments. Although muni default is very rare, some states, communities, are very overextended and may default.
So selection is critical as there are many munis that are completely funded or have municipalities that prudently planned and have ample funding resources. For example, some from financially sound areas have revenue bonds based on water & sewer revenue.
Some munis in this climate are paying more than Treasuries, while historically because of the tax advantage, they usually trade at @ 85% of Treasury yields.
Seamus
Post a Comment