Goldman's focus on bond trading pays off as profit soars

Posted by Forexsq 7 days ago (
img Goldman Sachs Group Inc (GS.N) reported a 50 percent jump in quarterly profit as last month's pickup in bond market activity helped to boost trading revenue, showing that banks sticking with the notoriously volatile business can reap big rewards.

Goldman's fixed-income, currency and commodities (FICC) business, which once contributed about 40 percent of its revenue, has been on a declining tre

Bonds Gain, Dollar Slips on Jobs Data; Stocks Fluctuate

Posted by Forexsq 48 days ago (
img Treasuries gained and the dollar fell amid speculation that weaker jobs growth will prevent the Federal Reserve from raising interest rates sooner than anticipated. U.S. stocks fluctuated and European shares slipped from a two-month high.

The yield on 10-year Treasuries dropped 3 basis points to 2.43 percent at 9:58 a.m. in New York. The Standard & Poor’s 500 Index rose less than 0.1 percent t

European Bonds Rise on Factory Data; Ruble at Record Low

Posted by Forexsq 52 days ago (
img Italian and Portuguese government bonds rose as a report showing slowing factory output boosted the case for more central bank stimulus. Emerging-market stocks gained as investors speculated China will take steps to bolster growth, while Russia’s ruble weakened to a record.

Italy’s 10-year yield dropped two basis points to 2.42 percent at 9:14 a.m. in New York, while the yield on Portugal’s 10

Putin’s Money Beats Sanctions in Russian Bank Bond Market

Posted by Forexsq 52 days ago (
img Bond investors who lost faith in VTB Group when it was saddled with sanctions by the U.S. and European Union missed out on Russia’s best corporate debt rally.

VTB’s dollar-denominated notes due in October 2020 returned 3.5 percent in August, helped by government plans to bolster its capital as the crisis over Ukraine stalls economic growth and stokes a jump in Russian non-performing loans. Tha

Asset-Backed Bonds Said to Face Tougher SEC Disclosure Rules

Posted by Forexsq 59 days ago (
img Sellers of bonds backed by mortgages and auto loans would have to give investors details including the borrowers’ income and credit scores under rules the U.S. Securities and Exchange Commission is poised to consider this week, according to two people briefed on the plan.

The SEC will vote Aug. 27 on the final rules, which were mandated by the Dodd-Frank Act after investors were burned by sour

German 10-year yield below 1%: 4 takeaways

Posted by Forexsq 70 days ago (
img The benchmark German bond yield dipped below 1% on Thursday, a move that’s being watched far beyond the borders of the euro zone’s biggest economy.

The 10-year German government bond, or bund, BX:TMBMKDE-10Y -1.08% yield has been sliding lower since the beginning of the year, stoking fears about the fate of the euro zone’s economic engine and eliciting comparisons to Japanese style deflation.

Europe Bonds Rise on ECB Stimulus as Tim Brasil Declines

Posted by Forexsq 111 days ago (
img European bonds rose, pushing Irish yields to a record low, on speculation the European Central Bank’s monetary stimulus will support demand for the securities. Telecom Italia SpA’s Brazilian unit headed for its biggest drop since January and Brent declined.

Ireland’s 10-year yield fell four basis points to 2.31 percent at 10:10 a.m. in New York. The Stoxx Europe 600 Index slipped 0.1 percent,

Trillion-Dollar Firms Dominating Bonds Prompting Probes

Posted by Forexsq 192 days ago (
img Bill Gross and Larry Fink manage a $3 trillion pile of bonds -- an amount almost as big as Germany’s economy. Their firms, Pacific Investment Management Co. and BlackRock Inc. (BLK), doubled holdings since 2008, outpacing the market’s growth of 50 percent.

Some of the largest hedge-fund firms, including Bridgewater Associates LP and BlueCrest Capital Management LLP, have also more than doubled

Greece sells first bonds in 4 years

Posted by Forexsq 196 days ago (
img Yes, you read that right. Greece has sold new bonds to international investors for the first time since its economy collapsed four years ago.

The Greek Finance Ministry said Thursday that it raised €3 billion ($4.2 billion) by selling 5-year bonds, its first debt issue since the eurozone country received €240 billion of bailout loans from the European Union and International Monetary Fund.

Junk Bonds at $2 Trillion as Gundlach Pulls Back: Credit Markets

Posted by Forexsq 218 days ago (
img The junk-bond bonanza that’s doubled the market to almost $2 trillion since the credit crisis has Jeffrey Gundlach heading toward the exit.

Less than 12 months after saying the Federal Reserve’s stimulus and a plunge in defaults would support the market for speculative-grade debt for another four years, the head of DoubleLine Capital LP is trimming its allocations. With borrowing costs for the

Italian Bonds Rise With Spain’s as Renzi to Form New Government

Posted by Forexsq 248 days ago (
img Italian government bonds advanced with those of Spain and Portugal amid optimism Matteo Renzi’s designation as prime minister will result in a government that will accelerate economic reform.

Italy’s 10-year yields dropped to the lowest level in eight years as President Giorgio Napolitano asked the Democratic Party leader to try to form a new government after previous premier Enrico Letta resi

Bonds Captivate $16 Trillion of Pensions

Posted by Forexsq 283 days ago (
img Bond buyers stung by the first losses in more than a decade can look to pension funds from companies such as Ford Motor Co. (F) for a measure of redemption.

Ford’s $64 billion pension is piling into bonds to reduce risk and lock in higher interest rates after a surge in yields and the biggest stock gain since 1997 sliced its funding shortfall by about half. The second-largest American automake

Bond fund and ETF types that deserve your money now

Posted by Forexsq 295 days ago (
img The death of a decades-strong bond bull market may be exaggerated, but fixed-income investors aren’t waiting to find out.

Buyers abandoned U.S. fixed income mutual funds and exchange-traded funds in 2013, most heading for stocks, in a record outflow from bond funds spurred by the Federal Reserve plans to “taper” its economy-supporting bond buying.

Fed likely to reduce bond buying, pass policy milestone

Posted by Forexsq 400 days ago (
img The U.S. Federal Reserve is expected to begin its long retreat from ultra-easy monetary policy on Wednesday by announcing a small reduction in its bond buying, while stressing that interest rates will remain near zero for a long time to come.

Most economists expect the Fed to scale back its monthly purchases by a modest $10 billion, taking them to $75 billion and signaling the beginning of the

Bill Gross says ‘carry on’ with bonds

Posted by Forexsq 441 days ago (
img Bill Gross has an important message for you about the bond market. In fact, “This may be the most important conceptual change I have ever written about in an Investment Outlook. Readers who have stuck with this Outlook at least to this point have a scoop, if not a magic feather,” he writes.

But Gross, co-chief investment officer at Pimco and manager of its Total Return Fund PTTRX , is also th

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