We see US corporate bonds as a safe investment because since the financial crisis, a large number of corporations have bolstered their cash holdings making them a relatively safe investment with a larger return than Treasuries. Domestic companies that do not rely heavily on foreign demand like JetBlue present a very attractive upside for investors.
All posts for the month January, 2012
The Fed To Keep Interest Rates at Record Lows Through Late 2014
Posted by bryantanalysts on January 29, 2012
http://www.bryantanalysts.com/2012/01/29/the-fed-to-keep-interest-rates-at-record-lows-through-late-2014/
January 11, 2012 Treasury Auction Makes History
Despite Standard & Poor’s recent downgrade of United States debt, from AAA to AA+, demand for Treasuries has skyrocketed. Yesterday, the attractiveness of U.S. government debt was reaffirmed. At the second of three auctions this week the Treasury sold $21 billion of 10- year notes at 1.90 percent, a record low yield. Recently, Fitch Ratings announced that it would not downgrade France’s AAA credit standing. (News, 2012) However, speculation of a downgrade and the expectation of a worsening sovereign debt crisis in Europe strengthened the appeal of U.S. debt. (Walker, 2012) Fitch said yesterday that there is a significant chance that Italy’s credit rating will be downgraded and that Spain’s credit will be reviewed, contributing to the appeal of stable U.S. debt comparatively.
Posted by bryantanalysts on January 12, 2012
http://www.bryantanalysts.com/2012/01/12/january-11-2012-treasury-auction-makes-history/
Don’t Forget About Greece
Every time Greece receives its next installment of bailout funds, the markets take a deep sigh of relief and return to business as normal. The principle “out of sight, out of mind” may appease the financial markets, but Greece’s debt isn’t disappearing anytime soon.
Posted by bryantanalysts on January 8, 2012
http://www.bryantanalysts.com/2012/01/08/greek-default-inevitable/
Dollar Strengthens
Despite what you may have heard, U.S. gross domestic product will expand 2.1% next year, compared with 1.25% for all G-10 nations, the ten countries that agreed to make funds available to the IMF for drawing by members, according to Bloomberg’s survey of economists. This shows that the domestic economy is not as bad as the media and the general public perceives it to be.
Posted by bryantanalysts on January 4, 2012
http://www.bryantanalysts.com/2012/01/04/dollar-strengthens/