Westfield Sells 7 U.S. Malls to Starwood for $1.6 Billion

Westfield Sells 7 U.S. Malls to Starwood for $1.6 Billion
By Nichola Saminather - Sep 16, 2013

Westfield Group (WDC), the world’s biggest shopping-center operator by assets, will sell seven malls in the U.S. for $1.6 billion to an affiliate of Starwood Capital Group LLC, as the company consolidates its U.S. portfolio to fund higher-return activities.

http://www.bloomberg.com/news/2013-09-16/westfield-sells-seven-u-s-malls-to-starwood-for-1-6-billion.html

Here Comes the Next Hot Emerging Market: the U.S.

THE INTELLIGENT INVESTOR
April 24, 2013, 12:25 p.m. ET

Here Comes the Next Hot Emerging Market: the U.S.

By JASON ZWEIG

The investment visionary who coined the term "emerging markets" and helped launch the first funds to invest in developing countries thinks he has spotted what you might call the next great emerging market.

It is called "the United States."

http://online.wsj.com/article/SB10001424127887324763404578432832232151840.html

Houston Makes Top 5 as Boom Lures Foreigners: Real Estate

Houston Makes Top 5 as Boom Lures Foreigners: Real Estate
By Dan Levy - Mar 26, 2013

International real estate investors are falling in love with Houston, a fast-expanding energy hub that’s luring buyers from Toronto to Tel Aviv seeking properties with lower costs and higher returns than buildings in the priciest U.S. cities.

Firms from outside the U.S. acquired $2.83 billion of Houston (OFCRAHOU) office buildings in the past three years, according to Real Capital Analytics Inc. They were the largest net buyers of any investor class, spending four times more than U.S. real estate investment trusts, which ranked second. Last year, Houston for the first time was among the top five global cities in an annual survey by the Association of Foreign Investors in Real Estate that dates back to 1994.

http://www.bloomberg.com/news/2013-03-26/houston-makes-top-5-as-boom-lures-foreigners-real-estate.html

KKR Said to Debut Real Estate Fund With $500 Million

KKR Said to Debut Real Estate Fund With $500 Million
By Devin Banerjee & Sabrina Willmer - Mar 13, 2013

KKR & Co. (KKR), the buyout firm run by Henry Kravis and George Roberts, is preparing to market its first fund dedicated to real estate investments with an initial $500 million committed to the pool, according to two people with knowledge of the matter.

http://www.bloomberg.com/news/2013-03-12/kkr-said-to-debut-real-estate-fund-with-500-million.html

Unemployment rate falls to lowest level since 2008

AMERICA'S COMEBACK
Unemployment rate falls to lowest level since 2008
By Annalyn Kurtz @CNNMoney March 8, 2013: 12:33 PM ET

NEW YORK (CNNMoney)

Hiring picked up in February, helping to bring the unemployment rate down to its lowest level since December 2008.

The U.S. economy added 236,000 jobs in February, according to a Labor Department report released Friday. That's much stronger growth than in January, when employers hired a revised 119,000 workers.

http://money.cnn.com/2013/03/08/news/economy/february-jobs-report/index.html

Housing and Core Inflation – It’s Complicated

Housing and Core Inflation – It’s Complicated

Laura Rosner - Market Economics
US Daily Spotlight | 22 Feb 2013 03:15 |

Markets were risk-off on Thursday, as equity markets sold off by more than 0.6% for the second day in a row, while the 10yr Treasury closed the day at 1.98%. Data for the day were unimpressive with jobless claims for the week suggesting only modest improvement in February payroll employment, existing home sales edging marginally higher and the February Philly Fed manufacturing index falling sharply (details of the report were less negative than the headline index implied). Meanwhile, core inflation was slightly stronger than expected in the January CPI report, mainly reflecting a rebound in core goods prices, but also modestly firmer increases in housing costs.

Biggest Buyers Stampede From Junk Bonds on Loss: Credit Markets

Biggest Buyers Retreat from Junk Bonds

(Source: Bloomberg, February 15, 2013)

According to Bloomberg, major institutional investors pulled back from junk bonds as exchange-traded funds (ETFs) experienced record withdrawals, marking the first losses in eight months. The combined value of the five largest junk-debt funds fell 7% from January highs, with State Street’s $11.9 billion fund alone seeing nearly $1 billion in withdrawals over 12 days.

Analysts noted that institutions such as hedge funds and banks are shifting away from broad indexes, instead targeting specific bonds. Junk bond ETFs, which attracted $8 billion in 2012 amid strong returns, are now facing outflows as strategists forecast weaker performance in 2013. Prices have declined from record highs, with concerns that valuations are stretched after years of double-digit returns.

Prominent investors including Dan Fuss of Loomis Sayles and Howard Marks of Oaktree Capital warned that the market is “overbought” and called for caution. Bank of America strategists described the pullback as evidence of instability at current valuations.

Meanwhile, credit-default swap costs rose slightly, signaling deteriorating confidence, while Heinz Co. bonds became the most actively traded following news of its $23 billion buyout by Berkshire Hathaway and 3G Capital.

Overall, junk bond ETFs are losing institutional support, with investors increasingly wary of inflated valuations and shifting toward selective opportunities rather than broad exposure.

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정크본드 시장에서 대규모 투자자 이탈

(출처: Bloomberg, 2013년 2월 15일)

Bloomberg 보도에 따르면, 정크본드 시장의 주요 기관 투자자들이 빠져나가면서 ETF(상장지수펀드)에서 사상 최대 규모의 자금 유출이 발생했습니다. 이는 8개월 만의 첫 손실로, 상위 5개 정크본드 펀드의 총 가치가 1월 고점 대비 7% 하락했습니다. 특히 State Street의 119억 달러 규모 펀드는 12일 동안 약 9억 8,800만 달러가 빠져나갔습니다.

전문가들은 헤지펀드와 은행 같은 기관들이 광범위한 지수 투자에서 벗어나 특정 채권에 집중하고 있다고 분석했습니다. 2012년 156%의 수익률로 80억 달러가 유입됐던 정크본드 ETF는 2013년에는 약세 전망으로 인해 자금이 빠져나가고 있습니다. 금리 상승과 과도한 밸류에이션 우려로 가격은 고점에서 하락세를 보이고 있습니다.

Loomis Sayles의 Dan Fuss와 Oaktree Capital의 Howard Marks는 시장이 “과매수 상태”라며 신중한 접근을 강조했습니다. Bank of America는 최근의 자금 유출이 현재 밸류에이션에서 시장 불안정을 보여주는 신호라고 평가했습니다.

한편, 신용부도스왑(CDS) 비용은 소폭 상승해 투자심리 악화를 반영했으며, Heinz의 230억 달러 인수 소식으로 해당 회사 채권이 가장 활발히 거래되었습니다.

결론적으로, 정크본드 ETF는 기관 투자자들의 지지를 잃고 있으며, 투자자들은 광범위한 시장 노출보다 개별 채권 중심의 선택적 투자로 이동하고 있습니다.

U.S. High Yield Default Loss Rate Below 1% in 2012

U.S. High Yield Default Loss Rate Below 1% in 2012

For the third consecutive year, the U.S. high yield default rate remained well below average, ending 2012 at 1.9% and up just modestly from 1.5% in 2011. The average recovery rate on the year’s defaults was 50.2% and the median recovery, 38.9%. Both measures slipped from 2011’s more robust 59.4% average and 47.9% median.

US Outlook 2013

US Outlook 2013

Bulent Baygun,Interest Rate Team - Rates
Desknotes US | 14 Dec 2012 15:29 |

Summary

We are facing a period of increased demand for high-quality paper, which should
keep funds flowing into Treasuries, agencies, mortgages and SSAs.

U.S. Oil Output to Overtake Saudi Arabia’s by 2020

http://www.bloomberg.com/news/2012-11-12/u-s-to-overtake-saudi-arabia-s-oil-production-by-2020-iea-says.html

U.S. Oil Output to Overtake Saudi Arabia’s by 2020
By Lananh Nguyen

U.S. oil output is poised to surpass Saudi Arabia’s in the next decade, making the world’s biggest fuel consumer almost self-reliant and putting it on track to become a net exporter, the International Energy Agency said.

Bloomberg: Bernanke Takes On Krugman’s Criticism Ignoring Own Advice

Bloomberg

Bernanke Takes On Krugman’s Criticism Ignoring Own Advice
By Jeff Kearns and Craig Torres

Federal Reserve Chairman Ben S. Bernanke took on Nobel prize-winning economist Paul Krugman yesterday and called his advice to reduce unemployment by boosting inflation “reckless.”

Bloomberg: Geithner Calls China’s Changes on Yuan Very Significant

Bloomberg

Geithner Calls China’s Changes on Yuan Very Significant
By Ian Katz

U.S. Treasury Secretary Timothy F. Geithner said China’s decision to widen the yuan’s trading band against the dollar reflects changes that are “very significant and very promising.”

Bloomberg: Service Industries in U.S. Kept Expanding in March: Economy

Bloomberg

Service Industries in U.S. Kept Expanding in March: Economy
By Alex Kowalski - 2012.04.04 12:42 PM

Service industries in the U.S. grew in March, capping the strongest quarter in a year and indicating the world’s largest economy will keep generating jobs.

Bloomberg: Dimon Letter Derides Contrived, Confusing Financial Rules

Bloomberg

Related News: Executive, U.S., Finance
Dimon Letter Derides Contrived, Confusing Financial Rules
By Dawn Kopecki - 2012.04.04 05:02 PM

Jamie Dimon, chairman and chief executive officer of JPMorgan Chase & Co. (JPM), used his annual letter to shareholders to rail against “contrived” and confusing financial rules that he said may stymie lending.

Bloomberg: Hedge Funds Make Wrong-Way Bets for a Fourth Week: Commodities

Bloomberg

Hedge Funds Make Wrong-Way Bets for a Fourth Week: Commodities
By Joe Richter - Mar 25, 2012 9:21 PM

Hedge funds wagered the wrong way on commodity prices for a fourth consecutive week, boosting bullish holdings just before reports showing a contraction in manufacturing from China to Europe drove prices lower.

Bloomberg: Bernanke Sees Need for Higher Household Spending to Fuel Growth

Bernanke Sees Need for Higher Household Spending to Fuel Growth
By Joshua Zumbrun - 2012.03.22 08:08 PM

Federal Reserve Chairman Ben S. Bernanke said the U.S. economy is operating below its level prior to the financial crisis, and that increased household spending is needed to sustain the expansion.

Bloomberg: Descending Treasury Yield Signals Slowing U.S.

Bloomberg

Descending Treasury Yield Signals Slowing U.S.
By John Detrixhe and Daniel Kruger - 2012.02.28 08:29 PM

The $10 trillion market for U.S. Treasuries is signaling that the economic recovery may be poised to weaken even as consumer confidence rises toward pre-recession levels.

Bloomberg: U.S. Consumer Sentiment Climbs Toward ’08 Levels

Bloomberg

U.S. Consumer Sentiment Climbs Toward ’08 Levels
By Timothy R. Homan - 2012.02.28 01:28 PM

Consumer-confidence measures are climbing out of the depths reached during the last recession as employers step up hiring and stocks rally, signaling Americans may be poised to increase spending.

Bloomberg: Pending U.S. Home Resales Show Housing Market Regaining Footing: Economy

http://www.bloomberg.com/news/2012-02-27/pending-sales-of-existing-homes-in-u-s-increase-a-more-than-estimated-2-.html

Pending U.S. Home Resales Show Housing Market Regaining Footing: Economy
By Shobhana Chandra - 2012.02.27 08:39 AM

More Americans than forecast signed contracts to buy previously owned homes in January, indicating the industry that sparked the last recession is improving.

USA Today: Business economists see continued slow growth overall

http://www.usatoday.com/money/story/2012-02-27/business-economists-forecast/53268208/1

Business economists see continued slow growth overall
By Samantha Bomkamp, Associated Press

NEW YORK – Economists are increasingly confident that some pillars of the U.S. economy will improve this year, but they remain cautious in their expectations on the overall pace of economic growth.