Friday, November 14, 2008

Told you about the long bond...

30-year Treasury up 2 1/2 points this morning. Told ya so. Wouldn't be surprised to see it get down to 4.15% but there is resistance there.

Meanwhile, Assured Guaranty, the insurer I pronounced dead a few months ago, is buying FSA. Might be more accurate to say Dexia is dumping FSA. More on this as I get more info on the transaction. Anyone who is hearing anything about this should e-mail me: accruedint AT


Anonymous_1 said...

What do you think about the Philadelphia pension system losing more than $650 million in the first nine months of the year? What is the Black Swan scenario, for systemic pension fund losses across the entire public and private sector? Doomsday!

kristof said...

Regarding the securities of mortgage-finance companies Fannie Mae and Freddie Mac...

``We provide a very strong implicit support,'' Kashkari said. ``It's darn close, but it's not quite full faith and credit.''


So if you are a pension fund or selling annuities, the long bond is pretty much your only bet at this point.

The sad thing though is that by having everyone stick their wealth into treasuries or the fed, and having expecting them turn around and efficiently stimulate the economy, gosh, it starting to sound like central planning is back in fashion.

Andrew said...

Hi Accrued Interest,

I'm emailing you in regards to a followup email I sent you a month ago in response to a partnership, have you had a chance to think about it?

If you have any questions or would more information, please advise me and we can go from there.

Kind Regards,
Andrew Knight