PIMCO was already scary big, but now the fund has even more power.
The bond king has signed on with the New York Fed as a Term Asset-Backed Securities Loan Facility (TALF) "collateral monitor." That means that PIMCO will have say in valuating assets that affect its own portfolio.
"These collateral monitors have an important job: if PIMCO or Trepp determines that an asset posted as collateral will perform poorly under certain economic conditions, the New York Fed might decide to decrease its loan to that borrower. So you’d think that the New York Fed would want to pick a collateral monitor that could provide independent, unbiased advice on the valuation of these assets, right?
Now, as POGO notes, PIMCO isn’t accused of any blatant misconduct — the NY Fed prevents TALF collateral monitors from decision-making — and hiring them makes sense given their asset management prowess. But like BlackRock, PIMCO is another example of groups with skin in the game helping run the government’s bailouts.
As the barbeque-bonanza and shopping-fest, that Memorial Day has become for many, takes shape, we thought a little reflection was necessary on the deeper meaning behind this important celebration honoring those who fell in the armed services of America during its wars.
Memorial Day Quotes
“Ask not what your country can do for you – ask what you can do for your country.”
— John F. Kennedy
“I have long believed that sacrifice is the pinnacle of patriotism.”...
By Jacob Wolinsky. Originally published at ValueWalk.
George Soros is Lucifer? Yes, according to Russian Insider in a new article titled “George Soros: The Ugly Face Behind Many Protest Movements” A photo of an evil looking Soros with a black hood who appears to be casting a spell in the story. Since I am not sure who has rights to the photo I cannot repost it here but you can view it here.
In the piece George Soros is blamed for funding the black lives matter movement, The Arab Spring (which long ago I coined the Qatari winter), Occupy Wall Street, and the...
If Australia is an economic miracle -- the so-called Lucky Country, beneficiary of more than a quarter century of uninterrupted growth -- then its banks are its most visible sign of strength. After a near-death experience in the 1990s, they’ve reformed and bounced ...
Semiconductors were the star of the week. The index cleared Match/April congestion and posted six consecutive winning days in a row. Technicals are all in the green and the index is above all key moving averages. Weakness will be a buying opportunity; a test of the 50-day MA would be a good start.
The Russell 2000 managed to regain the prior rising channel. Technicals are positive although it still has to make up relative ground against the Nasdaq. The index hasn't yet cracked new highs but one more days gain may be en...
The rally in mining stocks since the first of the year has been very impressive.
The rally has taken Gold Miners ETF GDX up to test the 23% retracement of the collapse over the past 5-years. At the same time it is hitting the 23% level, two other resistance lines are being put to a test, with momentum at the highest levels in the past 5-years.
Graham Media Group, Inc., a Graham Holdings Company (NYSE: GHC) subsidiary, said it struck a deal with Nexstar Broadcasting Group, Inc. and Media General, Inc. to purchase WCWJ, a CW affiliate television station in Jacksonville, Florida and WSLS, an NBC affiliate television station in Roanoke, Virginia for $60 million in cash and the assumption of certain liabilities.
The agreement to acquire Nextar Broadcasting included pension obligations. Graham Media Group, Inc. would continue to operate both stations under their current network affiliations.
Graham Media said the acquisition is subject to approval by the FCC, other regulatory appr...
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Do you remember when you were growing up and all your friends were allowed Atari game consoles but you weren’t?
Well, I do and the things seemed as foreign to me as Venus. Mostly because the little time I managed to spend on the gaming consoles when my friends weren’t hogging them I found it all a bit silly. I never “got” computer games, and to this day still have poor comprehension of things like Angry Birds.
I suspect that many people around the world view Bitcoin in the same way as I view Angry Birds: with mild amusement and a general lack of understanding as to what the hell all the fuss is about.
I was thinking of this since a buddy of mine recently started ...
After a three-year bull run that more than quadrupled its value by its peak last July, IBD’s Medical-Biomed/Biotech Industry Group plunged 50% by early February, hurt by backlashes against high drug prices and mergers that seek to lower corporate taxes.
Although we try to stay focused on finding and managing promising trade ideas, the comments in the comment section sometimes take a political turn (for access, try PSW — click here!). So today, Jean Luc writes,
The GOP debate last night was just unreal – are these people running to be president of the US or to lead a college fraternity! Comparing tool size? The only guy that looks semi-sane is Kasich. The other guys are just like 3 jackals right now.
And something else – if Trump is the candidate, that little Romney speech yesterday is probably already being made into a commercial. And all these little snippets from the debate will also make some nice ads! If you are a conservative, you have to be scared now.
Phil writes back,
I was expecting them to start throwing poop at each other &n...
This is a non-trading topic, but I wanted to post it during trading hours so as many eyes can see it as possible. Feel free to contact me directly at email@example.com with any questions.
Last fall there was some discussion on the PSW board regarding setting up a YouCaring donation page for a PSW member, Shadowfax. Since then, we have been looking into ways to help get him additional medical services and to pay down his medical debts. After following those leads, we are ready to move ahead with the YouCaring site. (Link is posted below.) Any help you can give will be greatly appreciated; not only to help aid in his medical bill debt, but to also show what a great community this group is.
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