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Latest Forum Topics / OCBC Bank    Last:23.95    -0.05  Post Reply
dow34899 down905

chartiskao
Elite
23-Jan-2024 11:55     
 
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households and nonprofits holding $4.4 trillion in checking accounts and cash suggests that there is a substantial amount of liquidity potentially available for investment. However, it' s important to note that the decision to invest in the stock market is influenced by various factors, including economic conditions, market sentiment, and individual financial goals.
https://www.investing.com/currencies/usd-jpy
https://www.cnbc.com/2024/01/23/china-strategist-warns-of-deflation-and-rock-bottom-consumer-confidence.html


chartiskao      ( Date: 23-Jan-2024 11:49) Posted:

Some key factors that typically influence these decisions include:
  1. Inflation Rate: Central banks often target a specific inflation rate. If inflation is below the target, a central bank might adopt accommodative policies to stimulate economic activity. Conversely, if inflation is above the target, a central bank might consider tightening monetary policy to cool off the economy.
  2. Employment Levels: Central banks are usually concerned with achieving full employment. They aim to support job creation and reduce unemployment. If employment levels are below the desired threshold, a central bank may pursue policies to stimulate economic activity.
  3. Economic Growth: The overall health of the economy, including the rate of economic growth, plays a crucial role. Central banks aim to support sustainable economic expansion and may adjust policies accordingly.
  4. Global Economic Conditions: Central banks also consider international factors, such as global economic trends, trade dynamics, and geopolitical events, as these can impact a country' s economic performance.
  5. Interest Rates: Central banks use interest rates as a tool to influence borrowing costs and spending. Lowering interest rates can encourage borrowing and spending, while raising rates can have the opposite effect.
  6. Financial Stability: Central banks are also concerned with maintaining the stability of the financial system. They may adjust policies to address risks related to asset bubbles, excessive leverage, or other financial imbalances.
  7. Currency Exchange Rates: The value of a country' s currency relative to others can affect trade and economic competitiveness. Central banks may consider exchange rates when formulating monetary policy.
  8. https://www.investing.com/currencies/sgd-jpy-chart
  9. https://www.investing.com/currencies/usd-sgd


chartiskao      ( Date: 23-Jan-2024 11:47) Posted:

Central banks often adopt ultra-loose policies to combat deflation, spur inflation, and promote economic growth. The decision to retain or adjust such policies depends on the prevailing economic conditions, inflation rates, employment levels, and other relevant factors.
https://www.cnbc.com/2024/01/23/bank-of-japan-expectedly-retains-its-ultra-loose-policy.html
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chartiskao
Elite
23-Jan-2024 11:49     
 
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 Alert Admin 		Some key factors that typically influence these decisions include:
  1. Inflation Rate: Central banks often target a specific inflation rate. If inflation is below the target, a central bank might adopt accommodative policies to stimulate economic activity. Conversely, if inflation is above the target, a central bank might consider tightening monetary policy to cool off the economy.
  2. Employment Levels: Central banks are usually concerned with achieving full employment. They aim to support job creation and reduce unemployment. If employment levels are below the desired threshold, a central bank may pursue policies to stimulate economic activity.
  3. Economic Growth: The overall health of the economy, including the rate of economic growth, plays a crucial role. Central banks aim to support sustainable economic expansion and may adjust policies accordingly.
  4. Global Economic Conditions: Central banks also consider international factors, such as global economic trends, trade dynamics, and geopolitical events, as these can impact a country' s economic performance.
  5. Interest Rates: Central banks use interest rates as a tool to influence borrowing costs and spending. Lowering interest rates can encourage borrowing and spending, while raising rates can have the opposite effect.
  6. Financial Stability: Central banks are also concerned with maintaining the stability of the financial system. They may adjust policies to address risks related to asset bubbles, excessive leverage, or other financial imbalances.
  7. Currency Exchange Rates: The value of a country' s currency relative to others can affect trade and economic competitiveness. Central banks may consider exchange rates when formulating monetary policy.
  8. https://www.investing.com/currencies/sgd-jpy-chart
  9. https://www.investing.com/currencies/usd-sgd


chartiskao      ( Date: 23-Jan-2024 11:47) Posted:

Central banks often adopt ultra-loose policies to combat deflation, spur inflation, and promote economic growth. The decision to retain or adjust such policies depends on the prevailing economic conditions, inflation rates, employment levels, and other relevant factors.
https://www.cnbc.com/2024/01/23/bank-of-japan-expectedly-retains-its-ultra-loose-policy.html


chartiskao      ( Date: 23-Jan-2024 09:41) Posted:

during Biden' s era
cash that individuals, institutions, or investors hold in relatively safe and liquid forms, such as savings accounts, money market funds, or other low-risk, low-yield investments. This money is considered to be " on the sidelines" because it is not actively invested in more dynamic or higher-yield opportunities, such as stocks, bonds, or other financial instruments.
Investors may choose to keep money on the sidelines for various reasons. They might be waiting for more favorable market conditions, anticipating a potential economic downturn, or simply seeking to preserve capital in low-risk assets. The decision to keep money on the sidelines is often influenced by an individual' s risk tolerance, investment goals, and market outlook.
When a significant amount of money is on the sidelines, it can impact market dynamics. If there' s a sudden influx of money into the markets from the sidelines, it could contribute to increased buying activity, potentially influencing asset prices. Conversely, if there' s a mass movement of money out of riskier investments and into safer assets, it could lead to market corrections or changes in asset valuations.
 
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chartiskao
Elite
23-Jan-2024 11:47     
 
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Central banks often adopt ultra-loose policies to combat deflation, spur inflation, and promote economic growth. The decision to retain or adjust such policies depends on the prevailing economic conditions, inflation rates, employment levels, and other relevant factors.
https://www.cnbc.com/2024/01/23/bank-of-japan-expectedly-retains-its-ultra-loose-policy.html


chartiskao      ( Date: 23-Jan-2024 09:41) Posted:

during Biden' s era
cash that individuals, institutions, or investors hold in relatively safe and liquid forms, such as savings accounts, money market funds, or other low-risk, low-yield investments. This money is considered to be " on the sidelines" because it is not actively invested in more dynamic or higher-yield opportunities, such as stocks, bonds, or other financial instruments.
Investors may choose to keep money on the sidelines for various reasons. They might be waiting for more favorable market conditions, anticipating a potential economic downturn, or simply seeking to preserve capital in low-risk assets. The decision to keep money on the sidelines is often influenced by an individual' s risk tolerance, investment goals, and market outlook.
When a significant amount of money is on the sidelines, it can impact market dynamics. If there' s a sudden influx of money into the markets from the sidelines, it could contribute to increased buying activity, potentially influencing asset prices. Conversely, if there' s a mass movement of money out of riskier investments and into safer assets, it could lead to market corrections or changes in asset valuations.
 

chartiskao      ( Date: 23-Jan-2024 09:39) Posted:

when 2023 rate cut bet fail the world traders go into
Several reasons could lead to a buildup of cash on the sidelines:
  1. Market Uncertainty: Investors may be hesitant to invest when there is uncertainty in the market, such as economic instability, geopolitical tensions, or unpredictable events.
  2. Lack of Attractive Investment Opportunities: If investors don' t see compelling investment opportunities or if they believe that asset prices are too high, they may choose to hold onto cash until better opportunities arise.
  3. Risk Aversion: In times of market volatility, investors may prefer the safety of cash over riskier investments. They might be waiting for more stable conditions before allocating their funds.
  4. Timing Considerations: Investors may be waiting for specific events or developments, such as earnings reports, economic data releases, or policy changes, before deciding where to deploy their cash.
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chartiskao
Elite
23-Jan-2024 09:41     
 
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 Alert Admin 		during Biden' s era
cash that individuals, institutions, or investors hold in relatively safe and liquid forms, such as savings accounts, money market funds, or other low-risk, low-yield investments. This money is considered to be " on the sidelines" because it is not actively invested in more dynamic or higher-yield opportunities, such as stocks, bonds, or other financial instruments.
Investors may choose to keep money on the sidelines for various reasons. They might be waiting for more favorable market conditions, anticipating a potential economic downturn, or simply seeking to preserve capital in low-risk assets. The decision to keep money on the sidelines is often influenced by an individual' s risk tolerance, investment goals, and market outlook.
When a significant amount of money is on the sidelines, it can impact market dynamics. If there' s a sudden influx of money into the markets from the sidelines, it could contribute to increased buying activity, potentially influencing asset prices. Conversely, if there' s a mass movement of money out of riskier investments and into safer assets, it could lead to market corrections or changes in asset valuations.
 

chartiskao      ( Date: 23-Jan-2024 09:39) Posted:

when 2023 rate cut bet fail the world traders go into
Several reasons could lead to a buildup of cash on the sidelines:
  1. Market Uncertainty: Investors may be hesitant to invest when there is uncertainty in the market, such as economic instability, geopolitical tensions, or unpredictable events.
  2. Lack of Attractive Investment Opportunities: If investors don' t see compelling investment opportunities or if they believe that asset prices are too high, they may choose to hold onto cash until better opportunities arise.
  3. Risk Aversion: In times of market volatility, investors may prefer the safety of cash over riskier investments. They might be waiting for more stable conditions before allocating their funds.
  4. Timing Considerations: Investors may be waiting for specific events or developments, such as earnings reports, economic data releases, or policy changes, before deciding where to deploy their cash.


chartiskao      ( Date: 23-Jan-2024 09:25) Posted:

to even out the wealth the new leaders will do this
https://getyarn.io/yarn-clip/10368030-931b-46eb-a3b8-c8d6d7a5d882/gif
so all become the equal
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chartiskao
Elite
23-Jan-2024 09:39     
 
chartiskao About Contact  Quote this Post!  
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 Alert Admin 		when 2023 rate cut bet fail the world traders go into
Several reasons could lead to a buildup of cash on the sidelines:
  1. Market Uncertainty: Investors may be hesitant to invest when there is uncertainty in the market, such as economic instability, geopolitical tensions, or unpredictable events.
  2. Lack of Attractive Investment Opportunities: If investors don' t see compelling investment opportunities or if they believe that asset prices are too high, they may choose to hold onto cash until better opportunities arise.
  3. Risk Aversion: In times of market volatility, investors may prefer the safety of cash over riskier investments. They might be waiting for more stable conditions before allocating their funds.
  4. Timing Considerations: Investors may be waiting for specific events or developments, such as earnings reports, economic data releases, or policy changes, before deciding where to deploy their cash.


chartiskao      ( Date: 23-Jan-2024 09:25) Posted:

to even out the wealth the new leaders will do this
https://getyarn.io/yarn-clip/10368030-931b-46eb-a3b8-c8d6d7a5d882/gif
so all become the equal


chartiskao      ( Date: 23-Jan-2024 09:23) Posted:

2024 no january effect stock rally
https://tenor.com/view/time-to-sell-traders-reality-clement-stocks-short-gif-21971448
 
bet on that old man biden whether he will continue to be the global leader and continue his war wild dreams
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chartiskao
Elite
23-Jan-2024 09:25     
 
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 Alert Admin 		to even out the wealth the new leaders will do this
https://getyarn.io/yarn-clip/10368030-931b-46eb-a3b8-c8d6d7a5d882/gif
so all become the equal


chartiskao      ( Date: 23-Jan-2024 09:23) Posted:

2024 no january effect stock rally
https://tenor.com/view/time-to-sell-traders-reality-clement-stocks-short-gif-21971448
 
bet on that old man biden whether he will continue to be the global leader and continue his war wild dreams


chartiskao      ( Date: 23-Jan-2024 09:20) Posted:

the crypto etf bet from october 2023 to jan 2024
https://giphy.com/gifs/happy-business-rudinihadi-erePhJFWkfYMwTpNT
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chartiskao
Elite
23-Jan-2024 09:23     
 
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 Alert Admin 		2024 no january effect stock rally
https://tenor.com/view/time-to-sell-traders-reality-clement-stocks-short-gif-21971448
 
bet on that old man biden whether he will continue to be the global leader and continue his war wild dreams


chartiskao      ( Date: 23-Jan-2024 09:20) Posted:

the crypto etf bet from october 2023 to jan 2024
https://giphy.com/gifs/happy-business-rudinihadi-erePhJFWkfYMwTpNT8

chartiskao      ( Date: 23-Jan-2024 09:18) Posted:

US 2023 rate cut bet from october to december 2023
https://tenor.com/view/sell-trading-places-mortimer-randolph-gif-2508991
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chartiskao
Elite
23-Jan-2024 09:20     
 
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 Alert Admin 		the crypto etf bet from october 2023 to jan 2024
https://giphy.com/gifs/happy-business-rudinihadi-erePhJFWkfYMwTpNT8

chartiskao      ( Date: 23-Jan-2024 09:18) Posted:

US 2023 rate cut bet from october to december 2023
https://tenor.com/view/sell-trading-places-mortimer-randolph-gif-25089911

chartiskao      ( Date: 23-Jan-2024 09:11) Posted:


(Jan 22):  The latest warning for investors unleashing dovish monetary wagers across the board: Two-thirds of Bloomberg Markets Live Pulse respondents said that betting the Federal Reserve (Fed) will loosen monetary policy early is the &ldquo most foolish&rdquo among popular trades heading into 2024.
Even as the S& P 500 closed last Friday at an all-time high, money managers and analysts are contending with data that signals US economic resilience and Fed officials who&rsquo ve pushed back against reducing interest rates too soon.
The results are an indication of rising anxiety on Wall Street that the bulls &mdash who&rsquo ve been emboldened by speculation surrounding a dovish Fed pivot &mdash are going too far. Already, traders who ended 2023 with an optimistic forecast of six rate cuts for this year have pared down that wager to five. They&rsquo re also less certain that policymakers will kick off their monetary easing cycle in March, as was nearly priced in during the frenetic rally of late 2023.
To Janet Mui, the head of market analysis at RBC Brewin Dolphin, the re-acceleration of inflation in some major economies and resilience in US employment data result in an important challenge for the market&rsquo s interest-rate expectations. &ldquo The early start and number of rate hikes priced in was incompatible with the soft-landing view,&rdquo she said.
San Francisco Fed president Mary Daly last Friday, meanwhile, said it&rsquo s &ldquo premature&rdquo to think rate reductions are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy.
More than two-thirds of the MLIV Pulse survey respondents said big gains for global stocks at the end of last year now look like a bad omen &mdash and evidence that market participants became too optimistic too fast. Positioning and sentiment rapidly shifted from risk-off to risk-on at the end of 2023 as investors bid up everything from small-cap stocks to junk bonds on hopes of rate reductions.
Now, after a mixed start to 2024, they are forced to decide between enjoying the good times or reigning in optimism before they get burned. One sign of that conundrum: Investors who responded to the survey are less bullish on stocks than they were in November, even as they still prefer them to bonds.
Of course, a majority of those surveyed agreed that January is a poor indicator of what the rest of the year will bring. Less than a tenth of respondents allocate risk behind year-ahead trades in December or January, and about a third said year-ahead trades are stupid.
One asset that doesn&rsquo t appear to have much momentum: bitcoin. More than two-thirds of respondents said they plan to keep their exposure unchanged over the next 12 months, even after the first US exchange-traded funds investing directly in the largest digital currency finally went live this month.
After a double-digit stock rally led by megacaps in 2023, investors are looking for cheaper deals. Going long on value stocks over their growth counterparts is the preferred wager for 44% of market participants.
&ldquo The stock market is going to have a much tougher time maintaining today&rsquo s high valuation levels,&rdquo said Matt Maley, the chief market strategist of Miller Tabak + Co. &ldquo Too many investors were equating the end of rate hikes and the beginning of rate cuts with a return to era of free money.&rdquo
It seems like there might be a typo or a slight error in your question. If you are asking about why Wall Street makes " foolish rate cut bets," it' s important to note that opinions on financial decisions can vary, and not all actions taken by individuals or institutions on Wall Street are universally considered foolish.
However, if you are referring to instances where some investors or institutions make what appear to be imprudent bets on interest rate cuts, there could be several reasons:
  1. Speculation and Risk Appetite: Investors often make bets based on their expectations of future economic conditions. If they anticipate economic challenges, they may expect central banks to implement interest rate cuts to stimulate economic activity. Speculators may take positions based on these expectations, even if the economic data doesn' t necessarily support such a move.
  2. Market Sentiment and Herd Behavior: Sometimes, investors follow the actions of others in the market, assuming that the collective behavior of the crowd is indicative of the correct direction. This herd behavior can lead to speculative bubbles or overreactions to news.
  3. Misreading Economic Signals: Investors may misinterpret economic indicators or data, leading them to believe that a rate cut is more likely or necessary than it actually is. Economic conditions can be complex and multifaceted, and misinterpretations can lead to suboptimal investment decisions.
  4. Overreliance on Central Bank Actions: Some investors might become overly dependent on central bank actions and expect monetary policy to solve all economic issues. In reality, central banks have limitations, and fiscal policies and structural reforms also play crucial roles in economic health.
  5. Unforeseen Events: Occasionally, unforeseen events can disrupt markets and lead to unexpected rate cuts. Investors might not accurately anticipate or assess the impact of such events, resulting in suboptimal bets.



 
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chartiskao
Elite
23-Jan-2024 09:18     
 
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 Alert Admin 		US 2023 rate cut bet from october to december 2023
https://tenor.com/view/sell-trading-places-mortimer-randolph-gif-25089911

chartiskao      ( Date: 23-Jan-2024 09:11) Posted:


(Jan 22):  The latest warning for investors unleashing dovish monetary wagers across the board: Two-thirds of Bloomberg Markets Live Pulse respondents said that betting the Federal Reserve (Fed) will loosen monetary policy early is the &ldquo most foolish&rdquo among popular trades heading into 2024.
Even as the S& P 500 closed last Friday at an all-time high, money managers and analysts are contending with data that signals US economic resilience and Fed officials who&rsquo ve pushed back against reducing interest rates too soon.
The results are an indication of rising anxiety on Wall Street that the bulls &mdash who&rsquo ve been emboldened by speculation surrounding a dovish Fed pivot &mdash are going too far. Already, traders who ended 2023 with an optimistic forecast of six rate cuts for this year have pared down that wager to five. They&rsquo re also less certain that policymakers will kick off their monetary easing cycle in March, as was nearly priced in during the frenetic rally of late 2023.
To Janet Mui, the head of market analysis at RBC Brewin Dolphin, the re-acceleration of inflation in some major economies and resilience in US employment data result in an important challenge for the market&rsquo s interest-rate expectations. &ldquo The early start and number of rate hikes priced in was incompatible with the soft-landing view,&rdquo she said.
San Francisco Fed president Mary Daly last Friday, meanwhile, said it&rsquo s &ldquo premature&rdquo to think rate reductions are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy.
More than two-thirds of the MLIV Pulse survey respondents said big gains for global stocks at the end of last year now look like a bad omen &mdash and evidence that market participants became too optimistic too fast. Positioning and sentiment rapidly shifted from risk-off to risk-on at the end of 2023 as investors bid up everything from small-cap stocks to junk bonds on hopes of rate reductions.
Now, after a mixed start to 2024, they are forced to decide between enjoying the good times or reigning in optimism before they get burned. One sign of that conundrum: Investors who responded to the survey are less bullish on stocks than they were in November, even as they still prefer them to bonds.
Of course, a majority of those surveyed agreed that January is a poor indicator of what the rest of the year will bring. Less than a tenth of respondents allocate risk behind year-ahead trades in December or January, and about a third said year-ahead trades are stupid.
One asset that doesn&rsquo t appear to have much momentum: bitcoin. More than two-thirds of respondents said they plan to keep their exposure unchanged over the next 12 months, even after the first US exchange-traded funds investing directly in the largest digital currency finally went live this month.
After a double-digit stock rally led by megacaps in 2023, investors are looking for cheaper deals. Going long on value stocks over their growth counterparts is the preferred wager for 44% of market participants.
&ldquo The stock market is going to have a much tougher time maintaining today&rsquo s high valuation levels,&rdquo said Matt Maley, the chief market strategist of Miller Tabak + Co. &ldquo Too many investors were equating the end of rate hikes and the beginning of rate cuts with a return to era of free money.&rdquo
It seems like there might be a typo or a slight error in your question. If you are asking about why Wall Street makes " foolish rate cut bets," it' s important to note that opinions on financial decisions can vary, and not all actions taken by individuals or institutions on Wall Street are universally considered foolish.
However, if you are referring to instances where some investors or institutions make what appear to be imprudent bets on interest rate cuts, there could be several reasons:
  1. Speculation and Risk Appetite: Investors often make bets based on their expectations of future economic conditions. If they anticipate economic challenges, they may expect central banks to implement interest rate cuts to stimulate economic activity. Speculators may take positions based on these expectations, even if the economic data doesn' t necessarily support such a move.
  2. Market Sentiment and Herd Behavior: Sometimes, investors follow the actions of others in the market, assuming that the collective behavior of the crowd is indicative of the correct direction. This herd behavior can lead to speculative bubbles or overreactions to news.
  3. Misreading Economic Signals: Investors may misinterpret economic indicators or data, leading them to believe that a rate cut is more likely or necessary than it actually is. Economic conditions can be complex and multifaceted, and misinterpretations can lead to suboptimal investment decisions.
  4. Overreliance on Central Bank Actions: Some investors might become overly dependent on central bank actions and expect monetary policy to solve all economic issues. In reality, central banks have limitations, and fiscal policies and structural reforms also play crucial roles in economic health.
  5. Unforeseen Events: Occasionally, unforeseen events can disrupt markets and lead to unexpected rate cuts. Investors might not accurately anticipate or assess the impact of such events, resulting in suboptimal bets.



 

chartiskao      ( Date: 23-Jan-2024 08:52) Posted:


Jan 22): Two major Wall Street firms are recommending investors start buying five-year US notes after they saw their worst rout since May last week.Morgan Stanley sees scope for a rebound in Treasuries on expectations data in the coming weeks may surprise to the downside. JPMorgan is suggesting investors buy five-year notes as yields have already climbed to levels last seen in December, though it warned that markets are still too aggressive in pricing for an early start to central bank interest-rate cuts.
&ldquo This is &lsquo the dip&rsquo we have been looking to buy,&rdquo analysts including Matthew Hornbach, the global head of macro strategy at Morgan Stanley, wrote in a note dated Jan  20. &ldquo With less fiscal support and much colder weather, we see downside risks to US activity data delivered in February.&rdquo
Five-year US yields climbed 22 basis points last week, the most since the period to May 19, as traders slashed bets on interest-rate cuts from the Federal Reserve (Fed) this year. Sustained pushback from central bank officials, along with healthy data on retail sales, sent the odds of a March reduction tumbling to nearly 40% last Friday. The market is now expecting five quarter-point cuts from the Fed this year, after looking for six-to-seven reductions on Jan  12.
The next set of auctions of Treasury debt, including two-, five- and seven-year notes, are slated to begin on Tuesday, setting the stage for upward pressure on yields for those segments of the market.
The bond market also faces risks with the first reading of US fourth-quarter gross domestic product on Thursday, expected to mark the strongest back-to-back quarters of growth since 2021. The Fed&rsquo s preferred gauge of underlying inflation is due Friday and is forecast to show an 11th straight month of waning annual price growth.
The data may end up reinforcing the potential that the Fed achieves its avowed aim of a soft landing. While that should allow policymakers to deliver interest-rate cuts this year, Treasuries have been whipsawed by the potential that an easing cycle will start later and proceed more slowly than previously expected.
JPMorgan expects the first Fed cut to come in June, rather than the May move, which is now fully priced in by swaps contracts. Morgan Stanley sees central banks in both the US and Europe to be in focus in mid-March and sees markets pricing in at least one rate cut by northern hemisphere spring for most central banks.
A Treasury selloff refers to a situation in the financial markets where there is a significant increase in selling activity of U.S. Treasury securities. This can lead to a decrease in the prices of these securities. The yield on Treasury securities moves inversely to their prices, so when prices fall, yields rise.
Here' s how it generally works:
  1. Interest Rates and Bond Prices: When interest rates in the market rise, the prices of existing bonds, including Treasury bonds, tend to fall. This is because the fixed interest payments on existing bonds become less attractive compared to the higher interest rates available in the market.
  2. Yield and Price Relationship: Yield is the annual income an investor receives from holding a bond, expressed as a percentage of the bond' s current market price. As bond prices fall, yields rise, and vice versa.
  3. Market Dynamics: A Treasury selloff often occurs when there is a perception in the market that interest rates will rise or are already rising. Investors may sell their existing Treasury holdings to move into other investments that offer higher yields in response to changing interest rate expectations.
  4. Economic Factors: Economic indicators, inflation expectations, and central bank policies can all influence interest rate expectations and, consequently, impact Treasury prices and yields.
The yield on U.S. Treasuries is closely watched by investors as an indicator of broader market sentiment and economic expectations. A significant increase in Treasury yields can have implications for various financial markets, including equities and other fixed-income securities.
It' s worth noting that Treasury yields and prices are also influenced by global economic conditions, geopolitical events, and the overall risk appetite of investors

 
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chartiskao
Elite
23-Jan-2024 09:11     
 
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 Alert Admin
(Jan 22):  The latest warning for investors unleashing dovish monetary wagers across the board: Two-thirds of Bloomberg Markets Live Pulse respondents said that betting the Federal Reserve (Fed) will loosen monetary policy early is the &ldquo most foolish&rdquo among popular trades heading into 2024.
Even as the S& P 500 closed last Friday at an all-time high, money managers and analysts are contending with data that signals US economic resilience and Fed officials who&rsquo ve pushed back against reducing interest rates too soon.
The results are an indication of rising anxiety on Wall Street that the bulls &mdash who&rsquo ve been emboldened by speculation surrounding a dovish Fed pivot &mdash are going too far. Already, traders who ended 2023 with an optimistic forecast of six rate cuts for this year have pared down that wager to five. They&rsquo re also less certain that policymakers will kick off their monetary easing cycle in March, as was nearly priced in during the frenetic rally of late 2023.
To Janet Mui, the head of market analysis at RBC Brewin Dolphin, the re-acceleration of inflation in some major economies and resilience in US employment data result in an important challenge for the market&rsquo s interest-rate expectations. &ldquo The early start and number of rate hikes priced in was incompatible with the soft-landing view,&rdquo she said.
San Francisco Fed president Mary Daly last Friday, meanwhile, said it&rsquo s &ldquo premature&rdquo to think rate reductions are around the corner, noting she needs to see more evidence that inflation is on a consistent trajectory back to 2% before easing policy.
More than two-thirds of the MLIV Pulse survey respondents said big gains for global stocks at the end of last year now look like a bad omen &mdash and evidence that market participants became too optimistic too fast. Positioning and sentiment rapidly shifted from risk-off to risk-on at the end of 2023 as investors bid up everything from small-cap stocks to junk bonds on hopes of rate reductions.
Now, after a mixed start to 2024, they are forced to decide between enjoying the good times or reigning in optimism before they get burned. One sign of that conundrum: Investors who responded to the survey are less bullish on stocks than they were in November, even as they still prefer them to bonds.
Of course, a majority of those surveyed agreed that January is a poor indicator of what the rest of the year will bring. Less than a tenth of respondents allocate risk behind year-ahead trades in December or January, and about a third said year-ahead trades are stupid.
One asset that doesn&rsquo t appear to have much momentum: bitcoin. More than two-thirds of respondents said they plan to keep their exposure unchanged over the next 12 months, even after the first US exchange-traded funds investing directly in the largest digital currency finally went live this month.
After a double-digit stock rally led by megacaps in 2023, investors are looking for cheaper deals. Going long on value stocks over their growth counterparts is the preferred wager for 44% of market participants.
&ldquo The stock market is going to have a much tougher time maintaining today&rsquo s high valuation levels,&rdquo said Matt Maley, the chief market strategist of Miller Tabak + Co. &ldquo Too many investors were equating the end of rate hikes and the beginning of rate cuts with a return to era of free money.&rdquo
It seems like there might be a typo or a slight error in your question. If you are asking about why Wall Street makes " foolish rate cut bets," it' s important to note that opinions on financial decisions can vary, and not all actions taken by individuals or institutions on Wall Street are universally considered foolish.
However, if you are referring to instances where some investors or institutions make what appear to be imprudent bets on interest rate cuts, there could be several reasons:
  1. Speculation and Risk Appetite: Investors often make bets based on their expectations of future economic conditions. If they anticipate economic challenges, they may expect central banks to implement interest rate cuts to stimulate economic activity. Speculators may take positions based on these expectations, even if the economic data doesn' t necessarily support such a move.
  2. Market Sentiment and Herd Behavior: Sometimes, investors follow the actions of others in the market, assuming that the collective behavior of the crowd is indicative of the correct direction. This herd behavior can lead to speculative bubbles or overreactions to news.
  3. Misreading Economic Signals: Investors may misinterpret economic indicators or data, leading them to believe that a rate cut is more likely or necessary than it actually is. Economic conditions can be complex and multifaceted, and misinterpretations can lead to suboptimal investment decisions.
  4. Overreliance on Central Bank Actions: Some investors might become overly dependent on central bank actions and expect monetary policy to solve all economic issues. In reality, central banks have limitations, and fiscal policies and structural reforms also play crucial roles in economic health.
  5. Unforeseen Events: Occasionally, unforeseen events can disrupt markets and lead to unexpected rate cuts. Investors might not accurately anticipate or assess the impact of such events, resulting in suboptimal bets.



 

chartiskao      ( Date: 23-Jan-2024 08:52) Posted:


Jan 22): Two major Wall Street firms are recommending investors start buying five-year US notes after they saw their worst rout since May last week.Morgan Stanley sees scope for a rebound in Treasuries on expectations data in the coming weeks may surprise to the downside. JPMorgan is suggesting investors buy five-year notes as yields have already climbed to levels last seen in December, though it warned that markets are still too aggressive in pricing for an early start to central bank interest-rate cuts.
&ldquo This is &lsquo the dip&rsquo we have been looking to buy,&rdquo analysts including Matthew Hornbach, the global head of macro strategy at Morgan Stanley, wrote in a note dated Jan  20. &ldquo With less fiscal support and much colder weather, we see downside risks to US activity data delivered in February.&rdquo
Five-year US yields climbed 22 basis points last week, the most since the period to May 19, as traders slashed bets on interest-rate cuts from the Federal Reserve (Fed) this year. Sustained pushback from central bank officials, along with healthy data on retail sales, sent the odds of a March reduction tumbling to nearly 40% last Friday. The market is now expecting five quarter-point cuts from the Fed this year, after looking for six-to-seven reductions on Jan  12.
The next set of auctions of Treasury debt, including two-, five- and seven-year notes, are slated to begin on Tuesday, setting the stage for upward pressure on yields for those segments of the market.
The bond market also faces risks with the first reading of US fourth-quarter gross domestic product on Thursday, expected to mark the strongest back-to-back quarters of growth since 2021. The Fed&rsquo s preferred gauge of underlying inflation is due Friday and is forecast to show an 11th straight month of waning annual price growth.
The data may end up reinforcing the potential that the Fed achieves its avowed aim of a soft landing. While that should allow policymakers to deliver interest-rate cuts this year, Treasuries have been whipsawed by the potential that an easing cycle will start later and proceed more slowly than previously expected.
JPMorgan expects the first Fed cut to come in June, rather than the May move, which is now fully priced in by swaps contracts. Morgan Stanley sees central banks in both the US and Europe to be in focus in mid-March and sees markets pricing in at least one rate cut by northern hemisphere spring for most central banks.
A Treasury selloff refers to a situation in the financial markets where there is a significant increase in selling activity of U.S. Treasury securities. This can lead to a decrease in the prices of these securities. The yield on Treasury securities moves inversely to their prices, so when prices fall, yields rise.
Here' s how it generally works:
  1. Interest Rates and Bond Prices: When interest rates in the market rise, the prices of existing bonds, including Treasury bonds, tend to fall. This is because the fixed interest payments on existing bonds become less attractive compared to the higher interest rates available in the market.
  2. Yield and Price Relationship: Yield is the annual income an investor receives from holding a bond, expressed as a percentage of the bond' s current market price. As bond prices fall, yields rise, and vice versa.
  3. Market Dynamics: A Treasury selloff often occurs when there is a perception in the market that interest rates will rise or are already rising. Investors may sell their existing Treasury holdings to move into other investments that offer higher yields in response to changing interest rate expectations.
  4. Economic Factors: Economic indicators, inflation expectations, and central bank policies can all influence interest rate expectations and, consequently, impact Treasury prices and yields.
The yield on U.S. Treasuries is closely watched by investors as an indicator of broader market sentiment and economic expectations. A significant increase in Treasury yields can have implications for various financial markets, including equities and other fixed-income securities.
It' s worth noting that Treasury yields and prices are also influenced by global economic conditions, geopolitical events, and the overall risk appetite of investors

 

chartiskao      ( Date: 22-Jan-2024 17:00) Posted:


It seems like you' re referring to a situation where a substantial amount of money, specifically $6 trillion in money-market funds, is not being invested in stocks. Money-market funds are generally considered to be low-risk and highly liquid investment vehicles that invest in short-term debt securities, such as Treasury bills and commercial paper.
Several reasons could explain why this cash isn' t heading into stocks:
  1. Market Uncertainty: Investors may be hesitant to enter the stock market due to uncertainty about economic conditions, geopolitical events, or other factors that could impact stock prices.
  2. Risk Aversion: Money-market funds are known for their stability and low-risk nature. Investors might be opting for safety and liquidity over the potential higher returns associated with stocks, especially during times of economic uncertainty.
  3. Interest Rates: Money-market funds can provide a reasonable level of return, particularly when interest rates are favorable. If interest rates are low, investors may find money-market funds more attractive compared to the potential returns from stocks.
  4. Investor Sentiment: Market sentiment plays a significant role in investment decisions. If investors have a pessimistic outlook on the stock market or the economy, they may prefer the safety of money-market funds.
  5. Corporate Behavior: Companies might be holding larger amounts of cash in money-market funds due to corporate strategies, such as preparing for acquisitions, maintaining liquidity, or awaiting better investment opportunities.
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chartiskao
Elite
23-Jan-2024 08:52     
 
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Jan 22): Two major Wall Street firms are recommending investors start buying five-year US notes after they saw their worst rout since May last week.Morgan Stanley sees scope for a rebound in Treasuries on expectations data in the coming weeks may surprise to the downside. JPMorgan is suggesting investors buy five-year notes as yields have already climbed to levels last seen in December, though it warned that markets are still too aggressive in pricing for an early start to central bank interest-rate cuts.
&ldquo This is &lsquo the dip&rsquo we have been looking to buy,&rdquo analysts including Matthew Hornbach, the global head of macro strategy at Morgan Stanley, wrote in a note dated Jan  20. &ldquo With less fiscal support and much colder weather, we see downside risks to US activity data delivered in February.&rdquo
Five-year US yields climbed 22 basis points last week, the most since the period to May 19, as traders slashed bets on interest-rate cuts from the Federal Reserve (Fed) this year. Sustained pushback from central bank officials, along with healthy data on retail sales, sent the odds of a March reduction tumbling to nearly 40% last Friday. The market is now expecting five quarter-point cuts from the Fed this year, after looking for six-to-seven reductions on Jan  12.
The next set of auctions of Treasury debt, including two-, five- and seven-year notes, are slated to begin on Tuesday, setting the stage for upward pressure on yields for those segments of the market.
The bond market also faces risks with the first reading of US fourth-quarter gross domestic product on Thursday, expected to mark the strongest back-to-back quarters of growth since 2021. The Fed&rsquo s preferred gauge of underlying inflation is due Friday and is forecast to show an 11th straight month of waning annual price growth.
The data may end up reinforcing the potential that the Fed achieves its avowed aim of a soft landing. While that should allow policymakers to deliver interest-rate cuts this year, Treasuries have been whipsawed by the potential that an easing cycle will start later and proceed more slowly than previously expected.
JPMorgan expects the first Fed cut to come in June, rather than the May move, which is now fully priced in by swaps contracts. Morgan Stanley sees central banks in both the US and Europe to be in focus in mid-March and sees markets pricing in at least one rate cut by northern hemisphere spring for most central banks.
A Treasury selloff refers to a situation in the financial markets where there is a significant increase in selling activity of U.S. Treasury securities. This can lead to a decrease in the prices of these securities. The yield on Treasury securities moves inversely to their prices, so when prices fall, yields rise.
Here' s how it generally works:
  1. Interest Rates and Bond Prices: When interest rates in the market rise, the prices of existing bonds, including Treasury bonds, tend to fall. This is because the fixed interest payments on existing bonds become less attractive compared to the higher interest rates available in the market.
  2. Yield and Price Relationship: Yield is the annual income an investor receives from holding a bond, expressed as a percentage of the bond' s current market price. As bond prices fall, yields rise, and vice versa.
  3. Market Dynamics: A Treasury selloff often occurs when there is a perception in the market that interest rates will rise or are already rising. Investors may sell their existing Treasury holdings to move into other investments that offer higher yields in response to changing interest rate expectations.
  4. Economic Factors: Economic indicators, inflation expectations, and central bank policies can all influence interest rate expectations and, consequently, impact Treasury prices and yields.
The yield on U.S. Treasuries is closely watched by investors as an indicator of broader market sentiment and economic expectations. A significant increase in Treasury yields can have implications for various financial markets, including equities and other fixed-income securities.
It' s worth noting that Treasury yields and prices are also influenced by global economic conditions, geopolitical events, and the overall risk appetite of investors

 

chartiskao      ( Date: 22-Jan-2024 17:00) Posted:


It seems like you' re referring to a situation where a substantial amount of money, specifically $6 trillion in money-market funds, is not being invested in stocks. Money-market funds are generally considered to be low-risk and highly liquid investment vehicles that invest in short-term debt securities, such as Treasury bills and commercial paper.
Several reasons could explain why this cash isn' t heading into stocks:
  1. Market Uncertainty: Investors may be hesitant to enter the stock market due to uncertainty about economic conditions, geopolitical events, or other factors that could impact stock prices.
  2. Risk Aversion: Money-market funds are known for their stability and low-risk nature. Investors might be opting for safety and liquidity over the potential higher returns associated with stocks, especially during times of economic uncertainty.
  3. Interest Rates: Money-market funds can provide a reasonable level of return, particularly when interest rates are favorable. If interest rates are low, investors may find money-market funds more attractive compared to the potential returns from stocks.
  4. Investor Sentiment: Market sentiment plays a significant role in investment decisions. If investors have a pessimistic outlook on the stock market or the economy, they may prefer the safety of money-market funds.
  5. Corporate Behavior: Companies might be holding larger amounts of cash in money-market funds due to corporate strategies, such as preparing for acquisitions, maintaining liquidity, or awaiting better investment opportunities.


chartiskao      ( Date: 22-Jan-2024 11:13) Posted:

" paid to stay in cash" refers to a situation where investors and managers choose to hold cash rather than invest it in financial assets. This decision is often driven by the expectation of a significant market event or catalyst that could impact investment opportunities. The idea is that by holding cash, investors can quickly react to market changes or take advantage of new opportunities when the catalyst moment occurs.
  the catalyst moment is potentially being related to interest rate policy. Interest rates play a crucial role in influencing investment decisions. For example, if investors anticipate a change in interest rates, they may choose to hold cash until there is more clarity on how the new rates will affect various assets.
 
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chartiskao
Elite
22-Jan-2024 17:00     
 
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It seems like you' re referring to a situation where a substantial amount of money, specifically $6 trillion in money-market funds, is not being invested in stocks. Money-market funds are generally considered to be low-risk and highly liquid investment vehicles that invest in short-term debt securities, such as Treasury bills and commercial paper.
Several reasons could explain why this cash isn' t heading into stocks:
  1. Market Uncertainty: Investors may be hesitant to enter the stock market due to uncertainty about economic conditions, geopolitical events, or other factors that could impact stock prices.
  2. Risk Aversion: Money-market funds are known for their stability and low-risk nature. Investors might be opting for safety and liquidity over the potential higher returns associated with stocks, especially during times of economic uncertainty.
  3. Interest Rates: Money-market funds can provide a reasonable level of return, particularly when interest rates are favorable. If interest rates are low, investors may find money-market funds more attractive compared to the potential returns from stocks.
  4. Investor Sentiment: Market sentiment plays a significant role in investment decisions. If investors have a pessimistic outlook on the stock market or the economy, they may prefer the safety of money-market funds.
  5. Corporate Behavior: Companies might be holding larger amounts of cash in money-market funds due to corporate strategies, such as preparing for acquisitions, maintaining liquidity, or awaiting better investment opportunities.


chartiskao      ( Date: 22-Jan-2024 11:13) Posted:

" paid to stay in cash" refers to a situation where investors and managers choose to hold cash rather than invest it in financial assets. This decision is often driven by the expectation of a significant market event or catalyst that could impact investment opportunities. The idea is that by holding cash, investors can quickly react to market changes or take advantage of new opportunities when the catalyst moment occurs.
  the catalyst moment is potentially being related to interest rate policy. Interest rates play a crucial role in influencing investment decisions. For example, if investors anticipate a change in interest rates, they may choose to hold cash until there is more clarity on how the new rates will affect various assets.
 

chartiskao      ( Date: 22-Jan-2024 11:09) Posted:

you sitt on the sideline with your cash when the FED hike rates to 22 years high and you start using your cash on the sideline when he start to cut the rates to a reasonable level that is half of 5.5% that is 2.75%
Here' s how it works:
  1. Higher Interest Rates: When central banks increase interest rates, the cost of borrowing rises. This makes loans more expensive for businesses and individuals.
  2. Reduced Spending and Investment: Higher interest rates tend to lead to decreased spending by consumers and reduced investment by businesses. This is because the cost of financing various activities becomes more expensive.
  3. Attractive Returns on Cash: With higher interest rates, the returns on holding onto cash or investing in low-risk assets may become more appealing compared to riskier investments or spending.
  4. Reduction in Money Supply: As spending and investment slow down, the overall money supply in the economy may decrease. This reduction in the availability of money can contribute to controlling inflation.
The phrase " cash sitting on the sideline" refers to funds that are not actively participating in economic activities. In the context of monetary tightening, these funds may stay in low-risk assets or cash equivalents, as the higher interest rates make these options more attractive.
 
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chartiskao
Elite
22-Jan-2024 11:13     
 
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 Alert Admin 		" paid to stay in cash" refers to a situation where investors and managers choose to hold cash rather than invest it in financial assets. This decision is often driven by the expectation of a significant market event or catalyst that could impact investment opportunities. The idea is that by holding cash, investors can quickly react to market changes or take advantage of new opportunities when the catalyst moment occurs.
  the catalyst moment is potentially being related to interest rate policy. Interest rates play a crucial role in influencing investment decisions. For example, if investors anticipate a change in interest rates, they may choose to hold cash until there is more clarity on how the new rates will affect various assets.
 

chartiskao      ( Date: 22-Jan-2024 11:09) Posted:

you sitt on the sideline with your cash when the FED hike rates to 22 years high and you start using your cash on the sideline when he start to cut the rates to a reasonable level that is half of 5.5% that is 2.75%
Here' s how it works:
  1. Higher Interest Rates: When central banks increase interest rates, the cost of borrowing rises. This makes loans more expensive for businesses and individuals.
  2. Reduced Spending and Investment: Higher interest rates tend to lead to decreased spending by consumers and reduced investment by businesses. This is because the cost of financing various activities becomes more expensive.
  3. Attractive Returns on Cash: With higher interest rates, the returns on holding onto cash or investing in low-risk assets may become more appealing compared to riskier investments or spending.
  4. Reduction in Money Supply: As spending and investment slow down, the overall money supply in the economy may decrease. This reduction in the availability of money can contribute to controlling inflation.
The phrase " cash sitting on the sideline" refers to funds that are not actively participating in economic activities. In the context of monetary tightening, these funds may stay in low-risk assets or cash equivalents, as the higher interest rates make these options more attractive.
 

chartiskao      ( Date: 22-Jan-2024 11:04) Posted:

when FEd starts to cut rates
Several types of infrastructure projects could be considered for such funding, including:
  1. Transportation: Large-scale projects such as highways, railways, airports, and ports often require substantial capital for construction and maintenance.
  2. Energy: Investments in renewable energy, such as solar, wind, or hydropower projects, may attract significant capital as the world focuses on sustainable and clean energy sources.
  3. Telecommunications: Expanding and upgrading telecommunications networks, including 5G infrastructure, can be capital-intensive but may offer substantial returns.
  4. Water and Sanitation: Infrastructure projects related to water supply and sanitation, especially in developing regions, could draw significant investment.
  5. Smart Cities: Developing smart city infrastructure, which includes technology-driven solutions for urban living, may attract substantial capital.
  6. Real Estate Development: Large-scale urban development or real estate projects can require substantial capital investment.
  7. Healthcare: Investments in healthcare infrastructure, including hospitals and medical facilities, could be a priority, especially considering global health challenges.
  8. Encouraging investors to deploy their cash into productive investments can have positive effects on economic growth and development. Here are some strategies or considerations to address this issue:
  9. Attractive Investment Opportunities: Creating or highlighting attractive investment opportunities can encourage investors to deploy their cash. This could involve promoting sectors with high growth potential, innovation, or those aligned with societal needs (such as sustainable technologies or infrastructure).
  10. Policy Measures: Governments and central banks can implement policies that encourage investment. This might include providing tax incentives for certain types of investments, reducing regulatory barriers, or implementing monetary policies that make holding cash less attractive.
  11. Interest Rates: Central banks can influence the attractiveness of holding cash by adjusting interest rates. Lower interest rates may discourage holding onto cash and incentivize investing in higher-yielding assets.
  12. Economic Stability: Ensuring economic and political stability can boost investor confidence. Investors are more likely to deploy their cash when they have confidence in the overall economic environment.
  13. Communication and Transparency: Clear communication about economic policies, market conditions, and future prospects can help build trust and confidence among investors. Transparency can reduce uncertainty, making investors more willing to deploy their cash.
  14. Infrastructure Investments: Large-scale infrastructure projects can attract significant capital and provide an avenue for investors to deploy their cash. Governments can play a key role in initiating and facilitating such projects.
  15. Innovation and Technology: Encouraging innovation and technological advancements can create new investment opportunities. Investors may be more inclined to deploy their cash in industries and companies that are at the forefront of technological developments.
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chartiskao
Elite
22-Jan-2024 11:09     
 
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 Alert Admin 		you sitt on the sideline with your cash when the FED hike rates to 22 years high and you start using your cash on the sideline when he start to cut the rates to a reasonable level that is half of 5.5% that is 2.75%
Here' s how it works:
  1. Higher Interest Rates: When central banks increase interest rates, the cost of borrowing rises. This makes loans more expensive for businesses and individuals.
  2. Reduced Spending and Investment: Higher interest rates tend to lead to decreased spending by consumers and reduced investment by businesses. This is because the cost of financing various activities becomes more expensive.
  3. Attractive Returns on Cash: With higher interest rates, the returns on holding onto cash or investing in low-risk assets may become more appealing compared to riskier investments or spending.
  4. Reduction in Money Supply: As spending and investment slow down, the overall money supply in the economy may decrease. This reduction in the availability of money can contribute to controlling inflation.
The phrase " cash sitting on the sideline" refers to funds that are not actively participating in economic activities. In the context of monetary tightening, these funds may stay in low-risk assets or cash equivalents, as the higher interest rates make these options more attractive.
 

chartiskao      ( Date: 22-Jan-2024 11:04) Posted:

when FEd starts to cut rates
Several types of infrastructure projects could be considered for such funding, including:
  1. Transportation: Large-scale projects such as highways, railways, airports, and ports often require substantial capital for construction and maintenance.
  2. Energy: Investments in renewable energy, such as solar, wind, or hydropower projects, may attract significant capital as the world focuses on sustainable and clean energy sources.
  3. Telecommunications: Expanding and upgrading telecommunications networks, including 5G infrastructure, can be capital-intensive but may offer substantial returns.
  4. Water and Sanitation: Infrastructure projects related to water supply and sanitation, especially in developing regions, could draw significant investment.
  5. Smart Cities: Developing smart city infrastructure, which includes technology-driven solutions for urban living, may attract substantial capital.
  6. Real Estate Development: Large-scale urban development or real estate projects can require substantial capital investment.
  7. Healthcare: Investments in healthcare infrastructure, including hospitals and medical facilities, could be a priority, especially considering global health challenges.
  8. Encouraging investors to deploy their cash into productive investments can have positive effects on economic growth and development. Here are some strategies or considerations to address this issue:
  9. Attractive Investment Opportunities: Creating or highlighting attractive investment opportunities can encourage investors to deploy their cash. This could involve promoting sectors with high growth potential, innovation, or those aligned with societal needs (such as sustainable technologies or infrastructure).
  10. Policy Measures: Governments and central banks can implement policies that encourage investment. This might include providing tax incentives for certain types of investments, reducing regulatory barriers, or implementing monetary policies that make holding cash less attractive.
  11. Interest Rates: Central banks can influence the attractiveness of holding cash by adjusting interest rates. Lower interest rates may discourage holding onto cash and incentivize investing in higher-yielding assets.
  12. Economic Stability: Ensuring economic and political stability can boost investor confidence. Investors are more likely to deploy their cash when they have confidence in the overall economic environment.
  13. Communication and Transparency: Clear communication about economic policies, market conditions, and future prospects can help build trust and confidence among investors. Transparency can reduce uncertainty, making investors more willing to deploy their cash.
  14. Infrastructure Investments: Large-scale infrastructure projects can attract significant capital and provide an avenue for investors to deploy their cash. Governments can play a key role in initiating and facilitating such projects.
  15. Innovation and Technology: Encouraging innovation and technological advancements can create new investment opportunities. Investors may be more inclined to deploy their cash in industries and companies that are at the forefront of technological developments.


chartiskao      ( Date: 22-Jan-2024 10:59) Posted:

Here are some potential points to consider:
  1. Reasons for Shrinkage: The mentioned shrinkage might be attributed to various factors such as changing regulatory environments, economic conditions, or strategic decisions by banks to optimize their balance sheets.
  2. Loan Sales and Securitizations: The statement suggests that the shrinkage will occur through loan sales or securitizations. Banks often engage in these activities to manage risk, improve liquidity, or adjust their capital structure.
  3. Impact on Banks: The reduction in assets could impact the profitability and overall health of banks. It may be indicative of a reevaluation of risk exposure or a strategic shift in business focus.
  4. Destination of Assets: The assets are expected to end up in the hands of pensions, insurance companies, and wealth management entities. This could lead to changes in investment portfolios for these institutions, potentially impacting the returns they generate.
  5. Impact on Financial Markets: Such a significant movement of assets could have implications for financial markets, affecting interest rates, asset prices, and overall market dynamics.
  6. Regulatory Considerations: Regulatory bodies may monitor and assess the implications of such shifts to ensure the stability and integrity of the financial system. Changes in ownership and risk concentration could prompt regulatory responses.
  7. Economic Implications: The movement of assets to pensions, insurance companies, and wealth management entities might influence the allocation of capital in the economy, potentially affecting sectors differently based on the investment strategies of these entities.
I
 
 
 


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chartiskao
Elite
22-Jan-2024 11:04     
 
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 Alert Admin 		when FEd starts to cut rates
Several types of infrastructure projects could be considered for such funding, including:
  1. Transportation: Large-scale projects such as highways, railways, airports, and ports often require substantial capital for construction and maintenance.
  2. Energy: Investments in renewable energy, such as solar, wind, or hydropower projects, may attract significant capital as the world focuses on sustainable and clean energy sources.
  3. Telecommunications: Expanding and upgrading telecommunications networks, including 5G infrastructure, can be capital-intensive but may offer substantial returns.
  4. Water and Sanitation: Infrastructure projects related to water supply and sanitation, especially in developing regions, could draw significant investment.
  5. Smart Cities: Developing smart city infrastructure, which includes technology-driven solutions for urban living, may attract substantial capital.
  6. Real Estate Development: Large-scale urban development or real estate projects can require substantial capital investment.
  7. Healthcare: Investments in healthcare infrastructure, including hospitals and medical facilities, could be a priority, especially considering global health challenges.
  8. Encouraging investors to deploy their cash into productive investments can have positive effects on economic growth and development. Here are some strategies or considerations to address this issue:
  9. Attractive Investment Opportunities: Creating or highlighting attractive investment opportunities can encourage investors to deploy their cash. This could involve promoting sectors with high growth potential, innovation, or those aligned with societal needs (such as sustainable technologies or infrastructure).
  10. Policy Measures: Governments and central banks can implement policies that encourage investment. This might include providing tax incentives for certain types of investments, reducing regulatory barriers, or implementing monetary policies that make holding cash less attractive.
  11. Interest Rates: Central banks can influence the attractiveness of holding cash by adjusting interest rates. Lower interest rates may discourage holding onto cash and incentivize investing in higher-yielding assets.
  12. Economic Stability: Ensuring economic and political stability can boost investor confidence. Investors are more likely to deploy their cash when they have confidence in the overall economic environment.
  13. Communication and Transparency: Clear communication about economic policies, market conditions, and future prospects can help build trust and confidence among investors. Transparency can reduce uncertainty, making investors more willing to deploy their cash.
  14. Infrastructure Investments: Large-scale infrastructure projects can attract significant capital and provide an avenue for investors to deploy their cash. Governments can play a key role in initiating and facilitating such projects.
  15. Innovation and Technology: Encouraging innovation and technological advancements can create new investment opportunities. Investors may be more inclined to deploy their cash in industries and companies that are at the forefront of technological developments.


chartiskao      ( Date: 22-Jan-2024 10:59) Posted:

Here are some potential points to consider:
  1. Reasons for Shrinkage: The mentioned shrinkage might be attributed to various factors such as changing regulatory environments, economic conditions, or strategic decisions by banks to optimize their balance sheets.
  2. Loan Sales and Securitizations: The statement suggests that the shrinkage will occur through loan sales or securitizations. Banks often engage in these activities to manage risk, improve liquidity, or adjust their capital structure.
  3. Impact on Banks: The reduction in assets could impact the profitability and overall health of banks. It may be indicative of a reevaluation of risk exposure or a strategic shift in business focus.
  4. Destination of Assets: The assets are expected to end up in the hands of pensions, insurance companies, and wealth management entities. This could lead to changes in investment portfolios for these institutions, potentially impacting the returns they generate.
  5. Impact on Financial Markets: Such a significant movement of assets could have implications for financial markets, affecting interest rates, asset prices, and overall market dynamics.
  6. Regulatory Considerations: Regulatory bodies may monitor and assess the implications of such shifts to ensure the stability and integrity of the financial system. Changes in ownership and risk concentration could prompt regulatory responses.
  7. Economic Implications: The movement of assets to pensions, insurance companies, and wealth management entities might influence the allocation of capital in the economy, potentially affecting sectors differently based on the investment strategies of these entities.
I
 
 
 


chartiskao      ( Date: 22-Jan-2024 10:55) Posted:

US 12 time rate hikes and friend shoring global investment resulted in money flow out of asia and china and so
  1. Money working its way through global capital markets: This suggests that money, likely in the form of investments or capital, is moving through the various financial markets on a global scale. Investors may buy and sell financial instruments, such as stocks or bonds, in different markets to optimize their returns or manage risk.
  2. Real economy adjustment during refinancing: The term " real economy" typically refers to the part of the economy that involves actual goods and services rather than financial transactions. Refinancing, in this context, likely refers to the process of rearranging or replacing existing financial instruments. When companies or individuals refinance, it can have real-world effects on the economy. For example, a company refinancing its debt might lead to changes in its spending, investment, or hiring practices.

 
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chartiskao
Elite
22-Jan-2024 10:59     
 
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 Alert Admin
Here are some potential points to consider:
  1. Reasons for Shrinkage: The mentioned shrinkage might be attributed to various factors such as changing regulatory environments, economic conditions, or strategic decisions by banks to optimize their balance sheets.
  2. Loan Sales and Securitizations: The statement suggests that the shrinkage will occur through loan sales or securitizations. Banks often engage in these activities to manage risk, improve liquidity, or adjust their capital structure.
  3. Impact on Banks: The reduction in assets could impact the profitability and overall health of banks. It may be indicative of a reevaluation of risk exposure or a strategic shift in business focus.
  4. Destination of Assets: The assets are expected to end up in the hands of pensions, insurance companies, and wealth management entities. This could lead to changes in investment portfolios for these institutions, potentially impacting the returns they generate.
  5. Impact on Financial Markets: Such a significant movement of assets could have implications for financial markets, affecting interest rates, asset prices, and overall market dynamics.
  6. Regulatory Considerations: Regulatory bodies may monitor and assess the implications of such shifts to ensure the stability and integrity of the financial system. Changes in ownership and risk concentration could prompt regulatory responses.
  7. Economic Implications: The movement of assets to pensions, insurance companies, and wealth management entities might influence the allocation of capital in the economy, potentially affecting sectors differently based on the investment strategies of these entities.
I
 
 
 


chartiskao      ( Date: 22-Jan-2024 10:55) Posted:

US 12 time rate hikes and friend shoring global investment resulted in money flow out of asia and china and so
  1. Money working its way through global capital markets: This suggests that money, likely in the form of investments or capital, is moving through the various financial markets on a global scale. Investors may buy and sell financial instruments, such as stocks or bonds, in different markets to optimize their returns or manage risk.
  2. Real economy adjustment during refinancing: The term " real economy" typically refers to the part of the economy that involves actual goods and services rather than financial transactions. Refinancing, in this context, likely refers to the process of rearranging or replacing existing financial instruments. When companies or individuals refinance, it can have real-world effects on the economy. For example, a company refinancing its debt might lead to changes in its spending, investment, or hiring practices.

 

chartiskao      ( Date: 22-Jan-2024 10:46) Posted:

https://finance.yahoo.com/news/record-6-trillion-cash-sidelines-211101016.html
 
When bond yields are high, it means that investors are demanding higher interest rates to lend money to the government. This can have significant implications for a country' s finances. Here' s how it works:
  1. Cost of Borrowing: Governments issue bonds to raise funds for various purposes, such as financing infrastructure projects, covering budget deficits, or refinancing existing debt. If bond yields are high, the government will have to pay a higher interest rate on the bonds it issues, increasing its cost of borrowing.
  2. Budget Deficits: Countries often run budget deficits, meaning they spend more money than they collect in revenue. To cover these deficits, they borrow by issuing bonds. Higher bond yields can lead to increased interest payments on this debt, putting additional strain on government budgets.
  3. Debt Sustainability: Persistently high bond yields can make a country' s existing debt more expensive to service. This can raise concerns about the sustainability of the country' s debt levels, especially if the government is already carrying a significant amount of debt.
  4. Impact on Economy: High bond yields can also have broader economic implications. They can increase borrowing costs for businesses and consumers, potentially slowing down economic activity. This is because higher interest rates make it more expensive for businesses to invest and for individuals to borrow for things like homes and cars.
  5. Currency Impact: High bond yields may attract foreign investors seeking higher returns, but they can also lead to an appreciation of the country' s currency. This, in turn, can affect the competitiveness of the country' s exports.
Central banks often use monetary policy tools, including adjusting interest rates, to influence bond yields and ensure stability in financial markets. Governments also employ fiscal policies to manage their finances and maintain debt sustainability.
In summary, the level of bond yields has significant implications for a country' s fiscal health, economic performance, and overall financial stability.
 Useful To Me  Not Useful To Me
chartiskao
Elite
22-Jan-2024 10:55     
 
chartiskao About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin 		US 12 time rate hikes and friend shoring global investment resulted in money flow out of asia and china and so
  1. Money working its way through global capital markets: This suggests that money, likely in the form of investments or capital, is moving through the various financial markets on a global scale. Investors may buy and sell financial instruments, such as stocks or bonds, in different markets to optimize their returns or manage risk.
  2. Real economy adjustment during refinancing: The term " real economy" typically refers to the part of the economy that involves actual goods and services rather than financial transactions. Refinancing, in this context, likely refers to the process of rearranging or replacing existing financial instruments. When companies or individuals refinance, it can have real-world effects on the economy. For example, a company refinancing its debt might lead to changes in its spending, investment, or hiring practices.

 

chartiskao      ( Date: 22-Jan-2024 10:46) Posted:

https://finance.yahoo.com/news/record-6-trillion-cash-sidelines-211101016.html
 
When bond yields are high, it means that investors are demanding higher interest rates to lend money to the government. This can have significant implications for a country' s finances. Here' s how it works:
  1. Cost of Borrowing: Governments issue bonds to raise funds for various purposes, such as financing infrastructure projects, covering budget deficits, or refinancing existing debt. If bond yields are high, the government will have to pay a higher interest rate on the bonds it issues, increasing its cost of borrowing.
  2. Budget Deficits: Countries often run budget deficits, meaning they spend more money than they collect in revenue. To cover these deficits, they borrow by issuing bonds. Higher bond yields can lead to increased interest payments on this debt, putting additional strain on government budgets.
  3. Debt Sustainability: Persistently high bond yields can make a country' s existing debt more expensive to service. This can raise concerns about the sustainability of the country' s debt levels, especially if the government is already carrying a significant amount of debt.
  4. Impact on Economy: High bond yields can also have broader economic implications. They can increase borrowing costs for businesses and consumers, potentially slowing down economic activity. This is because higher interest rates make it more expensive for businesses to invest and for individuals to borrow for things like homes and cars.
  5. Currency Impact: High bond yields may attract foreign investors seeking higher returns, but they can also lead to an appreciation of the country' s currency. This, in turn, can affect the competitiveness of the country' s exports.
Central banks often use monetary policy tools, including adjusting interest rates, to influence bond yields and ensure stability in financial markets. Governments also employ fiscal policies to manage their finances and maintain debt sustainability.
In summary, the level of bond yields has significant implications for a country' s fiscal health, economic performance, and overall financial stability.


chartiskao      ( Date: 19-Jan-2024 17:06) Posted:

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/abea759d-3556-43f1-905f-26aeb30c18dc

Private equity executives are predicting a sharp increase in takeover activity as buyout firms that have held on to investments in the hope of higher prices finally begin to capitulate. There has been a marked drop in private equity groups selling portfolio companies since a peak in 2021, as rising interest rates have made financing more difficult and hurt valuations. Investors in buyout funds have begun to increase pressure on groups to sell long-held investments and start returning cash, however, forcing them to reckon with lower prices and lock in returns. &ldquo Sellers have conceded to lower valuations and the pressure to meet a certain return on investment is ticking,&rdquo Pete Stavros, co-head of global private equity at KKR, told the Financial Times at the World Economic Forum in Davos. Firms entered the new year sitting on a record $2.8tn in investments, creating what consultancy Bain & Co last year called &ldquo a towering backlog&rdquo of potential sales. Many private equity investors have begun to demand cash returns before they commit to new funds, increasing the urgency of asset sales. &ldquo For the last 24 months, there has been a disconnect on valuation expectation between buyers and sellers. There is now a real sense of pragmatism setting in,&rdquo said Anna Skoglund, who leads the European financial and strategic investors group at Goldman Sachs. Last year, Veritas Capital, the private equity owner of healthcare software company Cotiviti, agreed to sell a 50 per cent stake to Carlyle in a deal that valued the business at up to $13bn before the transaction collapsed. In December, the FT reported KKR was now in talks at an $11bn valuation. Fundraising data suggests that the money once pouring into the industry has begun to dry up, compounding the problem for firms. The amount raised by private equity funds globally last year fell to a six-year low, according to S& P Global. &ldquo For the alternatives business to work properly, there needs to be a flow of money back to [investors] for them to reinvest in the new generation of funds,&rdquo Skoglund said. Some groups are sitting on stockpiles of cash after accumulating record amounts of capital they have yet to deploy, however, giving them an opportunity to boost returns through new investments. Buyers were standing ready to strike a flurry of deals as prices began to reflect new realities such as higher financing costs and more uncertain economic conditions, said executives at some of the industry&rsquo s largest groups. &ldquo This is a good time to lean in,&rdquo said Scott Nuttall, co-chief executive of KKR said. &ldquo There is less competition for deals and multiples have come down.&rdquo Nuttall and other industry leaders expect funds that are just beginning to make new investments will be beneficiaries. &ldquo It is in periods like this where we have historically earned our highest returns,&rdquo said Nuttall. Dealmakers forecast that asset sales between private equity groups will rebound particularly strongly. In recent years such transactions have accounted for about half of overall takeover activity, but &ldquo sponsor-to-sponsor&rdquo deals in the US dropped to their lowest level in a decade last year, according to data provider PitchBook. &ldquo There will be portfolios that are more challenged and you will have private equity firms in decent shape ready to make bids for some of those assets,&rdquo said Rob Lucas, a managing partner of CVC Capital Partners
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chartiskao
Elite
22-Jan-2024 10:46     
 
chartiskao About Contact  Quote this Post!  
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 Alert Admin
https://finance.yahoo.com/news/record-6-trillion-cash-sidelines-211101016.html
 
When bond yields are high, it means that investors are demanding higher interest rates to lend money to the government. This can have significant implications for a country' s finances. Here' s how it works:
  1. Cost of Borrowing: Governments issue bonds to raise funds for various purposes, such as financing infrastructure projects, covering budget deficits, or refinancing existing debt. If bond yields are high, the government will have to pay a higher interest rate on the bonds it issues, increasing its cost of borrowing.
  2. Budget Deficits: Countries often run budget deficits, meaning they spend more money than they collect in revenue. To cover these deficits, they borrow by issuing bonds. Higher bond yields can lead to increased interest payments on this debt, putting additional strain on government budgets.
  3. Debt Sustainability: Persistently high bond yields can make a country' s existing debt more expensive to service. This can raise concerns about the sustainability of the country' s debt levels, especially if the government is already carrying a significant amount of debt.
  4. Impact on Economy: High bond yields can also have broader economic implications. They can increase borrowing costs for businesses and consumers, potentially slowing down economic activity. This is because higher interest rates make it more expensive for businesses to invest and for individuals to borrow for things like homes and cars.
  5. Currency Impact: High bond yields may attract foreign investors seeking higher returns, but they can also lead to an appreciation of the country' s currency. This, in turn, can affect the competitiveness of the country' s exports.
Central banks often use monetary policy tools, including adjusting interest rates, to influence bond yields and ensure stability in financial markets. Governments also employ fiscal policies to manage their finances and maintain debt sustainability.
In summary, the level of bond yields has significant implications for a country' s fiscal health, economic performance, and overall financial stability.


chartiskao      ( Date: 19-Jan-2024 17:06) Posted:

Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/abea759d-3556-43f1-905f-26aeb30c18dc

Private equity executives are predicting a sharp increase in takeover activity as buyout firms that have held on to investments in the hope of higher prices finally begin to capitulate. There has been a marked drop in private equity groups selling portfolio companies since a peak in 2021, as rising interest rates have made financing more difficult and hurt valuations. Investors in buyout funds have begun to increase pressure on groups to sell long-held investments and start returning cash, however, forcing them to reckon with lower prices and lock in returns. &ldquo Sellers have conceded to lower valuations and the pressure to meet a certain return on investment is ticking,&rdquo Pete Stavros, co-head of global private equity at KKR, told the Financial Times at the World Economic Forum in Davos. Firms entered the new year sitting on a record $2.8tn in investments, creating what consultancy Bain & Co last year called &ldquo a towering backlog&rdquo of potential sales. Many private equity investors have begun to demand cash returns before they commit to new funds, increasing the urgency of asset sales. &ldquo For the last 24 months, there has been a disconnect on valuation expectation between buyers and sellers. There is now a real sense of pragmatism setting in,&rdquo said Anna Skoglund, who leads the European financial and strategic investors group at Goldman Sachs. Last year, Veritas Capital, the private equity owner of healthcare software company Cotiviti, agreed to sell a 50 per cent stake to Carlyle in a deal that valued the business at up to $13bn before the transaction collapsed. In December, the FT reported KKR was now in talks at an $11bn valuation. Fundraising data suggests that the money once pouring into the industry has begun to dry up, compounding the problem for firms. The amount raised by private equity funds globally last year fell to a six-year low, according to S& P Global. &ldquo For the alternatives business to work properly, there needs to be a flow of money back to [investors] for them to reinvest in the new generation of funds,&rdquo Skoglund said. Some groups are sitting on stockpiles of cash after accumulating record amounts of capital they have yet to deploy, however, giving them an opportunity to boost returns through new investments. Buyers were standing ready to strike a flurry of deals as prices began to reflect new realities such as higher financing costs and more uncertain economic conditions, said executives at some of the industry&rsquo s largest groups. &ldquo This is a good time to lean in,&rdquo said Scott Nuttall, co-chief executive of KKR said. &ldquo There is less competition for deals and multiples have come down.&rdquo Nuttall and other industry leaders expect funds that are just beginning to make new investments will be beneficiaries. &ldquo It is in periods like this where we have historically earned our highest returns,&rdquo said Nuttall. Dealmakers forecast that asset sales between private equity groups will rebound particularly strongly. In recent years such transactions have accounted for about half of overall takeover activity, but &ldquo sponsor-to-sponsor&rdquo deals in the US dropped to their lowest level in a decade last year, according to data provider PitchBook. &ldquo There will be portfolios that are more challenged and you will have private equity firms in decent shape ready to make bids for some of those assets,&rdquo said Rob Lucas, a managing partner of CVC Capital Partners.

chartiskao      ( Date: 19-Jan-2024 16:47) Posted:

A hot debt market is slashing borrowing costs for riskier companies" suggests that there is a robust and active market for debt, and as a result, the interest rates or borrowing costs for companies with higher perceived risk are decreasing.
Several factors could contribute to this phenomenon:
  1. Investor Appetite for Risk: In a hot debt market, investors may be more willing to take on risk in search of higher yields. This increased demand for riskier debt instruments can drive down the interest rates for these companies.
  2. Central Bank Policies: The actions and policies of central banks can significantly influence interest rates. If central banks maintain low interest rates or implement policies that encourage borrowing, it can contribute to a hot debt market and lower borrowing costs for all types of companies, including riskier ones.
  3. Economic Conditions: During periods of economic growth and optimism, investors may be more willing to take on risk. Positive economic indicators can create a favorable environment for riskier companies to borrow at lower costs.
  4. Market Confidence: Confidence in the financial markets can play a crucial role. If investors are optimistic about the overall health of the economy and believe that companies can meet their debt obligations, they may be more willing to invest in riskier debt, leading to lower borrowing costs.
  5. Companies with low credit ratings are rushing to slash their borrowing costs even before the Federal Reserve makes a single interest-rate cut.
    As of Thursday morning, companies such as and had asked investors to cut the interest rates on some $62 billion of sub-investment grade loans in January&mdash already the largest monthly total in three years, according to PitchBook LCD. 
    The rate adjustments are the product of a broad rally in stocks and bonds that kicked off late last year when investors grew more optimistic that a yearslong spell of high inflation was coming to an end without any sign of an imminent recession.
    Prices of so-called leveraged loans, which are often used to fund private-equity buyouts, have climbed especially high, in part because a slowdown in those deals has led to lack of new loans entering the market. 


 Useful To Me  Not Useful To Me
chartiskao
Elite
19-Jan-2024 17:06     
 
chartiskao About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin 		Please use the sharing tools found via the share button at the top or side of articles. Copying articles to share with others is a breach of FT.com T& Cs and Copyright Policy. Email [email protected] to buy additional rights. Subscribers may share up to 10 or 20 articles per month using the gift article service. More information can be found here.
https://www.ft.com/content/abea759d-3556-43f1-905f-26aeb30c18dc

Private equity executives are predicting a sharp increase in takeover activity as buyout firms that have held on to investments in the hope of higher prices finally begin to capitulate. There has been a marked drop in private equity groups selling portfolio companies since a peak in 2021, as rising interest rates have made financing more difficult and hurt valuations. Investors in buyout funds have begun to increase pressure on groups to sell long-held investments and start returning cash, however, forcing them to reckon with lower prices and lock in returns. &ldquo Sellers have conceded to lower valuations and the pressure to meet a certain return on investment is ticking,&rdquo Pete Stavros, co-head of global private equity at KKR, told the Financial Times at the World Economic Forum in Davos. Firms entered the new year sitting on a record $2.8tn in investments, creating what consultancy Bain & Co last year called &ldquo a towering backlog&rdquo of potential sales. Many private equity investors have begun to demand cash returns before they commit to new funds, increasing the urgency of asset sales. &ldquo For the last 24 months, there has been a disconnect on valuation expectation between buyers and sellers. There is now a real sense of pragmatism setting in,&rdquo said Anna Skoglund, who leads the European financial and strategic investors group at Goldman Sachs. Last year, Veritas Capital, the private equity owner of healthcare software company Cotiviti, agreed to sell a 50 per cent stake to Carlyle in a deal that valued the business at up to $13bn before the transaction collapsed. In December, the FT reported KKR was now in talks at an $11bn valuation. Fundraising data suggests that the money once pouring into the industry has begun to dry up, compounding the problem for firms. The amount raised by private equity funds globally last year fell to a six-year low, according to S& P Global. &ldquo For the alternatives business to work properly, there needs to be a flow of money back to [investors] for them to reinvest in the new generation of funds,&rdquo Skoglund said. Some groups are sitting on stockpiles of cash after accumulating record amounts of capital they have yet to deploy, however, giving them an opportunity to boost returns through new investments. Buyers were standing ready to strike a flurry of deals as prices began to reflect new realities such as higher financing costs and more uncertain economic conditions, said executives at some of the industry&rsquo s largest groups. &ldquo This is a good time to lean in,&rdquo said Scott Nuttall, co-chief executive of KKR said. &ldquo There is less competition for deals and multiples have come down.&rdquo Nuttall and other industry leaders expect funds that are just beginning to make new investments will be beneficiaries. &ldquo It is in periods like this where we have historically earned our highest returns,&rdquo said Nuttall. Dealmakers forecast that asset sales between private equity groups will rebound particularly strongly. In recent years such transactions have accounted for about half of overall takeover activity, but &ldquo sponsor-to-sponsor&rdquo deals in the US dropped to their lowest level in a decade last year, according to data provider PitchBook. &ldquo There will be portfolios that are more challenged and you will have private equity firms in decent shape ready to make bids for some of those assets,&rdquo said Rob Lucas, a managing partner of CVC Capital Partners.

chartiskao      ( Date: 19-Jan-2024 16:47) Posted:

A hot debt market is slashing borrowing costs for riskier companies" suggests that there is a robust and active market for debt, and as a result, the interest rates or borrowing costs for companies with higher perceived risk are decreasing.
Several factors could contribute to this phenomenon:
  1. Investor Appetite for Risk: In a hot debt market, investors may be more willing to take on risk in search of higher yields. This increased demand for riskier debt instruments can drive down the interest rates for these companies.
  2. Central Bank Policies: The actions and policies of central banks can significantly influence interest rates. If central banks maintain low interest rates or implement policies that encourage borrowing, it can contribute to a hot debt market and lower borrowing costs for all types of companies, including riskier ones.
  3. Economic Conditions: During periods of economic growth and optimism, investors may be more willing to take on risk. Positive economic indicators can create a favorable environment for riskier companies to borrow at lower costs.
  4. Market Confidence: Confidence in the financial markets can play a crucial role. If investors are optimistic about the overall health of the economy and believe that companies can meet their debt obligations, they may be more willing to invest in riskier debt, leading to lower borrowing costs.
  5. Companies with low credit ratings are rushing to slash their borrowing costs even before the Federal Reserve makes a single interest-rate cut.
    As of Thursday morning, companies such as and had asked investors to cut the interest rates on some $62 billion of sub-investment grade loans in January&mdash already the largest monthly total in three years, according to PitchBook LCD. 
    The rate adjustments are the product of a broad rally in stocks and bonds that kicked off late last year when investors grew more optimistic that a yearslong spell of high inflation was coming to an end without any sign of an imminent recession.
    Prices of so-called leveraged loans, which are often used to fund private-equity buyouts, have climbed especially high, in part because a slowdown in those deals has led to lack of new loans entering the market. 


chartiskao      ( Date: 19-Jan-2024 11:06) Posted:

One of the more recent and notable conflicts in Gaza was the Gaza War of 2014, also known as Operation Protective Edge. The conflict took place between July and August 2014 and involved intense fighting between Israel and Hamas, the militant group that governs the Gaza Strip. The conflict resulted in significant casualties and extensive damage to infrastructure in Gaza.
The root causes of the Israeli-Palestinian conflict are complex and involve historical, political, and religious factors. The issues include disputes over territory, the status of Jerusalem, the rights of Palestinian refugees, and the establishment of a Palestinian state. The conflict has seen periods of relative calm interrupted by outbreaks of violence, including wars and military operations.
an overview of some key events related to conflicts in Gaza:
  1. 1948 Arab-Israeli War (Israeli War of Independence): Gaza came under Egyptian control after the 1948 Arab-Israeli War. The conflict resulted in the establishment of the State of Israel and the displacement of hundreds of thousands of Palestinian Arabs.
  2. 1956 Suez Crisis: Israel, along with the United Kingdom and France, invaded the Sinai Peninsula and Gaza Strip in response to Egypt' s nationalization of the Suez Canal. International pressure, including from the United States and the Soviet Union, led to a withdrawal of the invading forces.
  3. 1967 Six-Day War: Israel captured the Gaza Strip from Egypt during the Six-Day War. The occupation continued for several decades.
  4. First Intifada (1987-1993): The First Intifada was a Palestinian uprising against Israeli rule. While it was not confined to Gaza, the region witnessed significant unrest and clashes during this period.
  5. 1993 Oslo Accords: The Oslo Accords marked a breakthrough in the Israeli-Palestinian peace process. The Gaza Strip was one of the areas where the Palestinian Authority (PA) gained limited autonomy.
  6. 2000-2005 Second Intifada (Al-Aqsa Intifada): The Second Intifada saw a renewal of violence between Israelis and Palestinians. In 2005, Israel unilaterally withdrew from the Gaza Strip, dismantling settlements and withdrawing its military presence.
  7. Hamas Takeover (2007): Following Israel' s withdrawal, the militant group Hamas took control of the Gaza Strip in a conflict with the rival Fatah faction. This led to a political and territorial division between the West Bank and Gaza.
  8. Operation Cast Lead (2008-2009): Israel launched a military operation in response to rocket attacks from Gaza. The conflict resulted in significant casualties and damage.
  9. Operation Pillar of Defense (2012): Another round of conflict between Israel and Gaza occurred, triggered by increased rocket fire. The conflict ended with a ceasefire brokered by Egypt.
  10. Operation Protective Edge (2014): A major conflict erupted in Gaza, with Israel responding to rocket attacks and the discovery of tunnels used by militants. The conflict led to substantial casualties and drew international attention.
The situation in Gaza remains complex and sensitive, with ongoing political, humanitarian, and security challenges.

 
 Useful To Me  Not Useful To Me
chartiskao
Elite
19-Jan-2024 16:47     
 
chartiskao About Contact  Quote this Post!  
  x 0
  x 0

 Alert Admin 		A hot debt market is slashing borrowing costs for riskier companies" suggests that there is a robust and active market for debt, and as a result, the interest rates or borrowing costs for companies with higher perceived risk are decreasing.
Several factors could contribute to this phenomenon:
  1. Investor Appetite for Risk: In a hot debt market, investors may be more willing to take on risk in search of higher yields. This increased demand for riskier debt instruments can drive down the interest rates for these companies.
  2. Central Bank Policies: The actions and policies of central banks can significantly influence interest rates. If central banks maintain low interest rates or implement policies that encourage borrowing, it can contribute to a hot debt market and lower borrowing costs for all types of companies, including riskier ones.
  3. Economic Conditions: During periods of economic growth and optimism, investors may be more willing to take on risk. Positive economic indicators can create a favorable environment for riskier companies to borrow at lower costs.
  4. Market Confidence: Confidence in the financial markets can play a crucial role. If investors are optimistic about the overall health of the economy and believe that companies can meet their debt obligations, they may be more willing to invest in riskier debt, leading to lower borrowing costs.
  5. Companies with low credit ratings are rushing to slash their borrowing costs even before the Federal Reserve makes a single interest-rate cut.
    As of Thursday morning, companies such as and had asked investors to cut the interest rates on some $62 billion of sub-investment grade loans in January&mdash already the largest monthly total in three years, according to PitchBook LCD. 
    The rate adjustments are the product of a broad rally in stocks and bonds that kicked off late last year when investors grew more optimistic that a yearslong spell of high inflation was coming to an end without any sign of an imminent recession.
    Prices of so-called leveraged loans, which are often used to fund private-equity buyouts, have climbed especially high, in part because a slowdown in those deals has led to lack of new loans entering the market. 


chartiskao      ( Date: 19-Jan-2024 11:06) Posted:

One of the more recent and notable conflicts in Gaza was the Gaza War of 2014, also known as Operation Protective Edge. The conflict took place between July and August 2014 and involved intense fighting between Israel and Hamas, the militant group that governs the Gaza Strip. The conflict resulted in significant casualties and extensive damage to infrastructure in Gaza.
The root causes of the Israeli-Palestinian conflict are complex and involve historical, political, and religious factors. The issues include disputes over territory, the status of Jerusalem, the rights of Palestinian refugees, and the establishment of a Palestinian state. The conflict has seen periods of relative calm interrupted by outbreaks of violence, including wars and military operations.
an overview of some key events related to conflicts in Gaza:
  1. 1948 Arab-Israeli War (Israeli War of Independence): Gaza came under Egyptian control after the 1948 Arab-Israeli War. The conflict resulted in the establishment of the State of Israel and the displacement of hundreds of thousands of Palestinian Arabs.
  2. 1956 Suez Crisis: Israel, along with the United Kingdom and France, invaded the Sinai Peninsula and Gaza Strip in response to Egypt' s nationalization of the Suez Canal. International pressure, including from the United States and the Soviet Union, led to a withdrawal of the invading forces.
  3. 1967 Six-Day War: Israel captured the Gaza Strip from Egypt during the Six-Day War. The occupation continued for several decades.
  4. First Intifada (1987-1993): The First Intifada was a Palestinian uprising against Israeli rule. While it was not confined to Gaza, the region witnessed significant unrest and clashes during this period.
  5. 1993 Oslo Accords: The Oslo Accords marked a breakthrough in the Israeli-Palestinian peace process. The Gaza Strip was one of the areas where the Palestinian Authority (PA) gained limited autonomy.
  6. 2000-2005 Second Intifada (Al-Aqsa Intifada): The Second Intifada saw a renewal of violence between Israelis and Palestinians. In 2005, Israel unilaterally withdrew from the Gaza Strip, dismantling settlements and withdrawing its military presence.
  7. Hamas Takeover (2007): Following Israel' s withdrawal, the militant group Hamas took control of the Gaza Strip in a conflict with the rival Fatah faction. This led to a political and territorial division between the West Bank and Gaza.
  8. Operation Cast Lead (2008-2009): Israel launched a military operation in response to rocket attacks from Gaza. The conflict resulted in significant casualties and damage.
  9. Operation Pillar of Defense (2012): Another round of conflict between Israel and Gaza occurred, triggered by increased rocket fire. The conflict ended with a ceasefire brokered by Egypt.
  10. Operation Protective Edge (2014): A major conflict erupted in Gaza, with Israel responding to rocket attacks and the discovery of tunnels used by militants. The conflict led to substantial casualties and drew international attention.
The situation in Gaza remains complex and sensitive, with ongoing political, humanitarian, and security challenges.

 

chartiskao      ( Date: 18-Jan-2024 16:41) Posted:

and they can start building new realtionships with the two powerful miidle east saudi and Iran
The term " crooked" is an adjective that is often used to describe something that is not straight, bent, or irregular in shape. For example, a crooked line is one that deviates from a straight path. In a more figurative sense, " crooked" can also be used to describe something that is dishonest, corrupt, or morally or ethically wrong. For instance, a " crooked deal" might refer to a dishonest or corrupt business transaction.
It' s important to note that the meaning of " crooked" can vary depending on the context in which it is used.
 
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