But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Ginnie Mae TBAs Shrug Off the Bond Market Sell-off
Ginnie Mae TBAs are where government loans go, such as the federal housing administration and veterans affairs loans.
When the Federal Reserve talks about buying mortgage-backed securities (or MBS), it’s referring to the to-be-announced (or TBA) market.
The 10-year bond influences everything from mortgage rates to corporate debt.
Last week was all about the FOMC meeting, which the markets interpreted as somewhat dovish.
Most of this week’s economic data will be released on Tuesday, with personal consumption and personal income and spending as the most important data points.
The UBS ETRACS Wells Fargo MLP Index ETN (MLPW) tracks the Wells Fargo Master Limited Partnership Index (WMLP).
The UBS ETRACS 1x Monthly Short Alerian MLP Infrastructure Total Return Index ETN (MLPS) tracks the Alerian MLP Infrastructure Total Return Index (AMZIX).
The UBS ETRACS Alerian Natural Gas MLP Index ETN (MLPG) consists of 20 gas-weighted energy MLPs. MLPG tracks the Alerian Natural Gas MLP Index (ANGI).
The UBS ETRACS Alerian MLP Infrastructure Index ETN (MLPI) tracks the Alerian MLP Infrastructure Index (AMZI).
The UBS ETRACS Alerian MLP Index ETN (AMU) tracks the Alerian MLP Index (AMZ), which lists 50 large- and mid-cap energy-related master limited partnerships.
A fund can’t invest more than 25% of assets in master limited partnerships (MLPs), so MLP ETFs structure themselves to forfeit this special tax treatment.
ETFs (exchange-traded funds) have stock-like characteristics, while ETNs (exchange-traded notes) possess bond-like traits.
MLPs (master limited partnerships) represent one component of the energy sector that has performed relatively well amid tanking oil prices.
MLPL tracks the same index as the UBS ETRACS Alerian MLP Infrastructure Index ETN (MLPI).
Initial jobless claims Initial jobless claims are one of the few labor market indicators released every week. Unemployment is a profound economic growth driver. Persistent unemployment has been the Achilles’ heel of…
The MBA reported that the share of refinance applications increased to 66.4%. This caught many by surprise, but it could be a pleasant surprise for the originators.
The easy money from the 2012 refinance wave has been made. Now, originators must focus on the purchase business, which is a more difficult area.
Mortgage rates spent most of the summer stuck around 4.25% and only recently acknowledged the strong bond market rally. The pattern of lagging the bond market seems to be continuing.
In March 2013, the Fed was forecasting that 2015 inflation would be ~1.5%–2%. By the December 2014 meeting, it decreased that number to 1%–1.6%.
At the March 2013 meeting, the Fed was forecasting that the 2015 GDP growth would be 3%–3.6%. At the last meeting, that dropped to 2.6%–3%.