Institutional investors are smarter than all of us, because they have so much of other people’s money to invest. That’s why we should always pay close attention to what they do.
Institutions are pouring into exchange-traded bond funds at the fastest pace on record. Nothing could go wrong there, right?
In the meantime, a consensus at the Federal Reserve Board is coalescing around a June rate hike. Bond prices fall when interest rates rise.
Oh, and ETF experts question whether bond ETFs are as liquid as popularly believed, leading to the possibility of a potential “fire sale” risk in a sudden downturn.
Bill Gross, formerly of Pimco, now of Janus, warns that “Central banks have gone and continue to go too far in their misguided efforts to support future economic growth.”
Dennis Koslowski, who served 6 1/2 years for looting Tyco International for about $100 million, now lives in a modest rented condo in New York. His shower curtain is from Bed, Bath & Beyond.
NXP Semiconductors and Freescale Semiconductor will merge in a deal that the combined companies at more than $30 billion.
Cardinal Health will buy Johnson & Johnson’s heart business for $1.94 billion in cash.
Fearing risk and slipping lending standards, Wells Fargo will cap its subprime car loans at no more than 10% of its total auto loans.
Warren Buffett says that investment bankers are nearsighted and self-serving and press for deals that aren’t in clients’ best interests – such as spin-offs to “unlock shareholder value.”
Stone Age Britons imported wheat about 8,000 years ago in a surprising sign of sophistication for primitive hunter-gatherers long viewed as isolated from European agriculture, a study showed on Thursday.