Tag Archives: Federal Reserve

FHA Flipping & VA Update; M&A Sweeps Through MI, Banks, and Large Lenders

“Karma means that I can rest easy at night knowing that all the people I treated badly had it coming.” But there is also good karma, and the MBA is creating plenty of it through its free (yes, there is no cost) Mortgage Action Alliance. I receive plenty of comments asking how the Realtors have a powerful lobby and lenders don’t and I always encourage the writer to at least sign up for the MBA’s MAA. The staff sends out news and action items but don’t clog your in-box. In fact, there is no downside whatsoever: you receive news AND you are counted in the MBA’s lobbying efforts.

Leslie Girard sent this little “issue” along. It seems that HSBC notified customers to “Have a Merry Christmas and pay your mortgage or we’ll take your house.” The fun never ends…

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U.K. Inflation to China Communist Party Plenary

According to Bloomberg,

Big Ben (Bloomberg)

Big Ben (Bloomberg)

Coming up in the global economy this week are readings on inflation in the U.K. and growth in the euro region, the third Communist Party plenary session in China and retail sales in Brazil. In the U.S., Janet Yellen’s confirmation hearing in her bid to become the next chairman of the Federal Reserve will take center stage.

U.K. INFLATION

— Bank of England Governor Mark Carney will make public the central bank’s quarterly inflation report on Nov. 13 as the economy shows signs of gathering steam.

— That may prompt policy makers to bring forward expectations of when unemployment will fall below 7 percent, which the BOE has set as a threshold for raising rates, according to economist Jonathan Loynes.

— “There must be a good chance that the unemployment forecast is reduced, not least because of what is likely to be a slightly stronger profile for GDP growth,” Loynes at Capital Economics Ltd. wrote in a Nov. 8 note to clients. “Such a shift so soon after the introduction of forward guidance could fuel expectations of further adjustments in the future, hence causing the markets to bring forward their rate-hike expectations again.”

EURO-REGION ECONOMY

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Hedge funds most bearish on treasurys in 16 months

Hedge funds most bearish on treasurys in 16 months

Hedge fund managers are the most bearish on 10-year U.S. Treasurys in 16 months, according to a new survey, as they position for a winding down of the Federal Reserve’s bond buying program.

Of the managers polled, 48.3 percent were negative in their outlook for 10-year debt in July, up 6 percentage points from the previous month, according to a monthly survey by TrimTabs/BarclayHedge published late Wednesday. The survey, which was conducted July 16 and July 19, polled 95 fund managers.

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Hedge funds lose big in June as outflows jump

Hedge funds lose big in June as outflows jump

Hedge funds across the world posted their largest loss for 12 months in June, as heightened fears of slowing growth in China and the tapering of the Federal Reserve’s bond buying program hit performance, new research has found.

Total assets under management declined by $21 billion over the month to $1.89 trillion,according to hedge fund database Eurekahedge. This decline was mostly a result of poor performance, with managers losing a total of $18.84 billion in June.

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Why Some Of The World’s Biggest Funds Are Getting Slammed

Why Some Of The World’s Biggest Funds Are Getting Slammed

Over the last several weeks Wall Street has learned a powerful and painful lesson: Sometimes nothing is safe. 

Call them what you want to — Top Dogs, Smart Money, Heavyweights — these are the kings, and their castles are crumbling.

Funds that looked bulletproof are getting smoked.

Ray Dalio’s famous ‘All Weather’ fund is down 8% for the year. The top performer of 2012 is down 5.66% for the year as of last week.

Market gurus may try to make what’s happening sound complicated, but it’s really not. In fact, what’s going on can be explained in two big market and investing themes. The first theme is the overall effect of the Federal Reserve’s change in policy and what it’s doing to risk across asset classes. The second theme is an age-old debate about how people should structure their investments in general.

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Market Consensus: Get Ready for 3% Treasury Yields

Market Consensus: Get Ready for 3% Treasury Yields

Yields on 10-year Treasurys have lurched 50 basis points upwards since May on fears the Federal Reserve may start scaling back its asset purchasing program, and some economists now forecast yields could reach 3 percent by year-end.

“We expect the 10-year Treasury yield to rise close to 3 percent by the end of the year,” James Paulsen of Wells Capital Management said in a research note on Tuesday. “Rising confidence [in the U.S. economy], which has clearly run through the stock market (in the form of higher valuations), is also now beginning to run through the bond market, pushing yields higher.”

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Federal Reserve might slow bond buying

Federal Reserve might slow bond buying

WASHINGTON — The Federal Reserve sketched a brighter economic outlook Wednesday and signaled it’s moving closer to slowing its bond-buying program, which is intended to keep long-term interest rates low.

Chairman Ben Bernanke said the Fed could start scaling back its $85 billion in monthly bond purchases later this year if the U.S. economy continues to improve. He said the reductions would occur in “measured steps” and that the purchases could end by the middle of next year. By then, Bernanke said, he thought unemployment would be about 7 percent.

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