Portfolio manager Barbara McKenna explains how her fund uses a “merger arbitrage” strategy that seeks to capitalize on the difference between the market price of a company being purchased, and the price offered by the acquirer.
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The Philly Fed number this morning was an unmitigated disaster. A huge drop-off in new orders dragged the reading down to a negative 16 versus expectations of flat. Taken in combination with this morning's weekly jobless claims number (the rolling 4-week average is headed in the wrong direction) along with everything else we've seen in retail sales and manufacturing, we know that things have ground to a halt.
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QuoraContributor
Jun 21, 2012
Jon Cooper, Former prop trader @ Deutsche, Amaranth, and Arrowgrass
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Financial Finesse
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Companies today may be unknowingly hobbling new college graduates causing them to be ill prepared for retirement. With the best of intentions, companies have added auto-enrollment features and “set it and forget it” target-date retirement funds to 401(k) plans so new employees don’t have to worry about a thing—everything is [...]
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Where will the next major municipal bond default occur? While there are several definitions of default,Learn Bonds likes the one used by the major credit rating agencies. A default is when bondholders don’t receive their money (interest or principal) on time.
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Great Speculations
The great corporate-bond bull market continues unabated with the Dow Jones Corporate Bond Average up 46 percent since 2008. The iShares iBoxx Investment Grade Corp. Bond (LQD) ETF is up 4.5% year-to-date. The below-investment grade has stayed above water, with the SPDR Barclays Capital High Yield Bond (JNK)ETF and iShares iBoxx High Yield Corporate Bond (HYG) up 2.8% and 3.5%, respectively.
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