But if I knew how to manage my portfolio safer and smarter than most hedge fund managers, I could realistically grow my wealth.
Why Ginnie Mae securities rallied 5 ticks with a strong bond rally
The front-month Ginnie Mae TBAs were bid up as bonds rallied eight basis points. Ginnie Mae TBAs began the week at 106 16/32 and picked up 5 ticks to close at 106 21/32.
Fannie Mae MBS rallied a bit on a strong bond market. The Fannie Mae 4% TBA started the week at 105 26/32 and picked up about an eighth to close at 105 30/32.
Bonds rallied last week in sympathy with European sovereigns and on tensions in Ukraine. Surprisingly, they shrugged off a strong 4.2% GDP number and some stronger-than-expected economic data.
The biggest number last week was the revision to second quarter GDP (the second revision) to +4.2%. This number is a strong rebound from the -2.9% print for the first quarter.
Even though this is a short week, we still have a lot of data—with construction spending, the ISM data, and the jobs report. The jobs report will loom the largest for the bond market.
The Dallas Fed survey asks about output, employment, orders, prices, shipments, inventories, capacity utilization, prices, capital expenditures, and some other indicators.
The CCI is one of the oldest consumer surveys, originally started as a mail-in survey in 1967. It asks respondents whether certain conditions are positive, negative, or neutral.
Mortgage REITs like Annaly (NLY), American Capital Agency (AGNC), and PennyMac (PMT) will use the survey data to help forecast prepayment speeds and also to gauge consumer sentiment and its expected effects on the economy.
Some places of the country are looking for workers, and other places have a glut of workers. Unfortunately, they can’t move easily if they’re underwater on their mortgage.
Enterprise Products Partners (EPD) is the largest company by market capitalization and enterprise value, or EV, among its closest peers. By market cap, Williams Companies (WMB) follows next.
Williams Companies’ (WMB) overall capex is projected to stay low during 2014 to 2016. Many of the company’s expansion projects are scheduled to start operations in late 2016 and 2017.
Based on a variety of projects and income-accretive acquisitions, Williams Companies (WMB) projects a 20% dividend growth through 2016.
In 2014, Williams Companies (WMB) has significantly outperformed the industry and broader market. WMB’s stock has returned ~50% year-to-date (or YTD). On an annualized basis, this would turn out to be a ~79% return.
Williams Partners (WPZ) is building a gathering system in Northeast Pennsylvania to cater to increased production from the Marcellus Shale.
Following the accident that took place in the Geismar olefins plant in June 2013 and its consequent shutdown, Williams Companies (WMB) has been working to increase the plant’s capacity.
Williams Companies’ (WMB) NGL & Petchem Services segment consists primarily of Canadian midstream operations and certain domestic olefins pipeline assets.
Williams Partners L.P. (WPZ) accounts for a big chunk of Williams Companies’ (WMB) operations and profits. So deeper insight into WPZ’s performance is a must.
For 2Q14, Williams Companies (WMB) recorded $513 million in adjusted segment profit. This total is up 19% from the $431 million it recorded in 2Q13.
Williams Companies (WMB) released its 2Q14 earnings on July 30, 2014. The company recorded $1.68 billion in total revenues for 2Q14. This total was down 5.0% from the $1.76 billion recorded in 2Q13.
Williams Companies Inc. (WMB) mainly operates through its investments in master limited partnerships—or MLPs—Williams Partners LP (WPZ) and Access Midstream Partners (ACMP) as well as its Williams NGL & Petchem Services unit.