Markets react immediately and in anticipation of FOMC announcements and minute releases.
The Committee thought that inflation would move back toward its 2% objective during the forecast period.
A few participants expressed uncertainty about the outlook for economic growth in Japan and China.
Participants of the June FOMC meeting discussed the tools being used to bring about monetary policy normalization.
The expansion in economic activity was anticipated to slowly reduce resource slack over the projection period.
Broad stock market indices were boosted by a more optimistic assessment of near-term economic prospects, and supported by continued low interest rates.
The unemployment rate declined markedly in April and held steady in May, although it was still elevated.
Foreign real GDP growth slowed in the first quarter, especially in China and some other emerging market economies.
The Fed’s asset purchase program is intended to provide enough liquidity in the market to keep the Fed funds rate low.
The labor market, unemployment rate, and housing spends all indicate improvement.
Leveraged loan (BKLN) mutual funds continued to see investors exit for the eighth consecutive week, with net outflows of $457 million last week.
Last week’s figures bring the total number of CLO deals in 2014 to 118, for an issuance of $63 billion.
Yields on both Treasuries and high-yield debt (JNK) increased last week.
Other high-profile issues included Altegrity’s $825 million senior secured five-year notes, which will be used for refinancing older debt.
A key factor influencing issuance this year may have been the lower average yields on high-yield debt in the first half of 2014, compared to 2013.
Despite a holiday-shortened week, issuance volumes for leveraged loans surged by almost 49%, week-over-week, to $21.3 billion.
If earnings are strong, the market may sustain its current level a while longer. You have two options: gamble your money or invest your money.
What you need is a metric to predict the likelihood of investors spooking. The short interest ratio gives you this key information.
Regarding equities, there have been several times over the last decade when stocks had an earnings yield of 6%–7%. So why buy into a 5.5% yield?
Today, I’ll outline for you a simple framework that you can apply in any market scenario to understand what’s going on and decide whether to hold on for the ride or sit on the sidelines.