WSJ: High Oil Prices Rattle Asian Markets

ASIA MARKETS|FEBRUARY 28, 2011, 1:54 A.M. ET
High Oil Prices Rattle Asian Markets

By SHRI NAVARATNAM And GA-WOON PHILIP VAHN

SINGAPORE—Asian stock markets were mixed Monday as a surge in oil prices amid continued worries over the turmoil in the Middle East hit airline stocks and dampened sentiment.

The Seoul market lost ground on fears that an ongoing military drill could provoke fresh aggression from North Korea.

Risk of Widespread Municipal Bond Defaults Near `Zero,' Moody's Zandi Says

Related News: U.S.·Bonds·Municipal Bonds

Risk of Widespread Municipal Bond Defaults Near `Zero,' Moody's Zandi Says

By Mark Niquette and William Selway - Feb 28, 2011 6:22 AM GMT+0900

Mark Zandi, chief economist
for Moody's Analytics.
Photographer:
Andrew Harrer/Bloomberg

Dire warnings about impending defaults in the municipal-bond market are overblown, an economist and analyst told a group of the nation’s governors.

The risk of a major default or round of defaults is “close to zero,” Mark Zandi, chief economist for Moody’s Analytics Inc. in West Chester, Pennsylvania, said during a panel session at the National Governors Association’s winter meeting in Washington.

“I think that the very loud hand-wringing over the prospects for major municipal-bond defaults is entirely misplaced,” Zandi said.

Why 2011 May Be the End of the Housing Crash (WSJ)

Insight: Is the Housing Crash Finally Over?

Hello. Today, we are exploring the key takeaways from the Wall Street Journal's 2011 article, "Why 2011 May Be the End of the Housing Crash." This insightful piece explains why the long and painful real estate slump might finally be coming to a close.

The biggest reason for optimism is that homes are incredibly affordable right now. In fact, compared to how much people earn, houses are the cheapest they have been in 35 years. In cities like Los Angeles, the cost of a home has dropped so much that buying makes a lot more financial sense than renting.

Another very positive sign is that smart investors are quietly returning to the market. But they aren't borrowing heavily like people did during the bubble. Instead, they are buying up properties with cold, hard cash. In cities like Miami, over half of all home sales were cash deals. This shows that savvy buyers believe prices have finally hit rock bottom and are seizing the opportunity.

If you are thinking of jumping in, the experts have some sound advice. Don't expect to get rich quick like in the mid-2000s. You should plan to hold onto your property for at least 10 years and avoid taking on too much debt. If you want to profit from the housing recovery without actually buying a house, you can easily invest in exchange-traded funds or mutual funds that focus on home construction and home improvement companies.

Sourced from The Wall Street Journal: "Why 2011 May Be the End of the Housing Crash"
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안녕하세요. 오늘은 월스트리트저널에서 발표한 "2011년이 주택 시장 폭락의 끝이 될 수 있는 이유" 기사의 핵심 내용을 알기 쉽게 정리해 드립니다. 2006년부터 이어진 부동산 침체기가 드디어 끝날 조짐을 보인다는 긍정적인 전망을 담고 있습니다.

가장 큰 이유는 집값이 정말 저렴해졌기 때문입니다. 사람들의 소득에 비해 집값이 35년 만에 가장 낮은 수준으로 내려왔습니다. 예전에는 집을 사려면 몇 년 치 월급을 꼬박 모아야 했지만, 이제는 그 기간이 절반 가까이 줄어든 지역이 많습니다. 월세를 내는 것보다 차라리 집을 사는 것이 더 합리적인 상황이 된 것입니다.

또한 현금 부자들의 발 빠른 움직임도 주목할 만합니다. 빚을 내서 무리하게 집을 사던 과거와 달리, 요즘은 집값을 전액 현금으로 지불하며 부동산을 사들이는 투자자들이 눈에 띄게 늘었습니다. 마이애미 같은 곳에서는 절반 이상의 거래가 현금으로 이루어졌을 정도입니다. 이는 영리한 투자자들이 지금이 집을 사기 가장 좋은 타이밍이라고 판단했음을 보여줍니다.

다만, 전문가들은 당장 집값이 예전처럼 껑충 뛸 것이라는 헛된 기대는 버려야 한다고 조언합니다. 최소 10년 이상 길게 보고 집을 사야 하며, 빚을 너무 많이 지는 것은 피해야 합니다. 만약 직접 집을 사고 관리하는 것이 부담스럽다면, 집을 짓거나 집수리 용품을 파는 회사들에 투자하는 상장지수펀드(ETF)나 펀드를 활용하는 것도 아주 좋은 방법입니다.

위 내용은 월스트리트저널의 "Why 2011 May Be the End of the Housing Crash"를 읽기 쉽게 요약한 자료입니다.
오리지널 기사 링크

The Caution Flag Is Out For The Revitalized U.S. CMBS Market (S&P)

The Caution Flag Is Out For The Revitalized U.S. CMBS Market (00:05:57 min)

The revitalized U.S. CMBS market is dealing with larger and more complex transactions. CMBS 2.0, after a very conservative start, has quickly moved toward higher leverage, lower debt service coverage ratios, and somewhat looser underwriting. In this podcast, Standard & Poor's Managing Director Howard Esaki and Senior Director James Manzi discuss overall market trends with an eye on these recent transactions.

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Tesco reviews property strategy

http://www.ft.com/cms/s/0/d2828764-4105-11e0-bf62-00144feabdc0.html

February 25, 2011 11:06 pm
Tesco reviews property strategy
By Andrea Felsted, Senior Retail Correspondent

Philip Clarke, the incoming chief executive of Tesco, is examining the group’s property strategy in a move that some analysts believe could herald a further multibillion-pound disposal programme.

AB: Ratings Agencies Criticized for Going Easy on Mortgage Servicers

Ratings Agencies Criticized for Going Easy on Mortgage Servicers
By Jeff Horwitz
FEB 25, 2011 5:23pm EDT

Investors and analysts have howled over specific mortgage servicers' handling of delinquent loans for years. The ratings industry generally has not.

Frankfurt’s ‘Mainhattan’ Reaches for the Skies

February 25, 2011, 10:59 AM
Frankfurt’s ‘Mainhattan’ Reaches for the Skies

By Tom Fairless

Frankfurt’s landmark towers are gleaming anew. This week, the last of 2,800 staff moved back into Deutsche Bank’s 155-meter towers, nicknamed “debit” and “credit,” after a three-year refurbishment. Everything bar the concrete skeleton is new. The pair will be formally launched at a party on Thursday.

http://blogs.wsj.com/source/2011/02/25/frankfurts-mainhattan-reaches-for-the-skies/

AB: A Servicer's Alleged Conflict Raises Doubts About 'Skin in the Game' Reforms

A Servicer's Alleged Conflict Raises Doubts About 'Skin in the Game' Reforms
By Jeff Horwitz
FEB 24, 2011 3:12pm EDT

Carrington Capital Management, a former subprime securitization specialist, salvaged an impressive amount of money from its low-ranked residential mortgage-backed securities, thanks to the unusual strategies of its servicing affiliate.

2011 Outlook For The U.S. Trucking Sector (S&P)

The Road Ahead: Standard & Poor's 2011 Outlook For The U.S. Trucking Sector (00:04:14 min)

Despite volatile fuel prices due to Middle East instability and increased costs from rising wages and recruitment, the U.S. trucking sector's outlook for 2011 should continue to improve. As industry demand correlates well with overall GDP -- which should rise this year -- we expect overall industry tonnage to increase. In this CreditMatters TV segment, Standard & Poor's Director Anita Ogbara discusses our expectations for the sector in 2011.

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Winters, Lord Rothschild to launch Renshaw Bay

http://www.ftadviser.com/2011/10/25/investments/winters-lord-rothschild-to-launch-renshaw-bay-uRZXrGyFDRZVIg6LbxBiPO/article.html

Winters, Lord Rothschild to launch Renshaw Bay

Former JP Morgan co-chief executive Bill Winters has unveiled an alternative asset management and advice venture with Lord Rothschild, targeting the UK's wealthy investors.

By Marc Shoffman | Published Feb 24, 2011