The 1994 bond market massacre is remembered with horror by those who lived through it. Yields on 30-year Treasuries jumped some 200 basis points in the first nine months of the year, hammering investors and financial firms, not to mention thrusting Mexico into crisis and bankrupting Orange County.
The accepted story is that an over-eager Federal Reserve set off the carnage by raising interest rates too soon – the sort of premature move that current Fed Chairman Ben Bernanke has suggested, again and again, that he is not going to make.
FRANKFURT, March 15 (Reuters) – Private equity firm EQT and
sovereign wealth fund GIC are set to forge ahead in their
efforts to offload Springer Science+Business Media,
seeking buyers while also preparing a flotation as an
alternative, several people close to the process told Reuters.
Sources had told Reuters last year that EQT and GIC were
seeking a buyer who they hoped would pay as much as 4 billion
euros ($5.2 billion) for the German speciality publisher of
scientific journals, but they have so far not made any notable
NEW YORK, March 15 (Reuters) – Foreigners boosted purchases
of U.S. government bonds in January and cut back on U.S.
equities after two months of strong inflows, U.S. Treasury data
showed on Friday.
Demand for Treasuries was driven entirely by official
buyers, including central banks, who snapped up $53.1 billion.
That was the largest inflow in at least three years.
NEW YORK (Reuters) – Record low interest rates have helped investors rediscover a taste for bonds backed by everything from pizza to movie royalties, even though strong demand for these offbeat assets has already trimmed returns.
Over the last year, investors have snapped up debt backed by royalty fees from franchise restaurants such as Domino’s Pizza to timeshare loans on vacation properties around the world, and analysts expect demand to grow in 2013.
FRANKFURT, March 12 (Reuters) – Allianz Re, the reinsurance
unit of Europe’s biggest insurer, Allianz, expects
stagnant-to-falling prices for risk cover in contract talks
between insurance companies and their reinsurance backers in the
It would take a fundamental change in the amount of
reinsurance supply available, or perhaps a catastrophic event
like an earthquake or storm, to cause the pricing picture to
change, Allianz Re Chief Executive Amer Ahmed told Reuters in an
HERZOGENAURACH, Germany (Reuters) – Adidas (ADSGn.DE: Quote, Profile, Research, Stock Buzz) is to stick with its troubled Reebok business even though the German sportswear group had to make a 265 million euro ($344.5 million) writedown on the brand at the end of last year.
Adidas, which bought Reebok in 2005 for $3.8 billion to try to close the gap with market leader Nike (NKE.N: Quote, Profile, Research, Stock Buzz), last year had to cut its 2015 sales target for the brand by a third after two quarters of declining sales.
WASHINGTON (Reuters) – Private employers hired more workers than expected in February and demand for a range of factory goods was solid in January, hopeful signs for the economy as it deals with higher taxes and deep government budget cuts.
The reports on Wednesday suggested economic activity picked up after it stalled in the final three months of 2012.
WASHINGTON, March 6 (Reuters) – U.S. private employers hired
more workers than expected in February and demand for a range of
factory goods was solid in January, hopeful signs for the
economy as it deals with higher taxes and deep government budget
The reports on Wednesday suggested economic activity picked
up after it stalled in the final three months of 2012.
NEW YORK (Reuters) – About an hour after the Dow Jones industrial average hit a record high on Tuesday, Overland Park, Kansas-based financial adviser Brad Stratton got an e-mail from a client asking how she could “make hay while the sun shines.”
Stratton, a former Merrill Lynch broker who set up his own firm last year, said he’s been fielding a lot of such calls lately. Many are from clients who want to capitalize on stock-market gains by purchasing second homes or investment properties.
NEW YORK/LONDON (Reuters) – U.S. manufacturing activity expanded last month at its fastest clip in 20 months but Asian factories slowed and European output fell, suggesting the road back to robust global growth remains uneven.
In the United States, rising demand lifted the Institute for Supply Management’s factory purchasing managers index to its highest level since mid-2011, helping the sector regain some of the momentum lost in the second half of last year.