As if it could possibly get any better after the ChartGrid earlier (yep, we gotta get out more often) we wanted to add a couple of things to the weekend reading list. Given all the (lack of?) attention to Reuters earlier on about Treasuries possibly being exmempt from the small bank fee to be imposed WE thought the first story from Investmentnews.com is worth a look.
“But the Moms and Pops are now gone from retail money market funds, making the institutionladen funds a ticking time bomb. Stretching themselves out on the yield curve to offer a bit bigger return than pancake-flat Treasuries, money market funds have extended the weighted average maturity of their portfolios. One large fund, for example, recently had a WAM of 55 days. When the Fed raises rates (I say “when,” and not “if,” because rates can’t stay near zero forever and there’s nowhere to go but up), money will come pouring out of money market funds. And as money funds sell their holdings to redeem shares, we will see a liquidity freeze in the commercial-paper markets comparable to the Primary Reserve Fund crisis that sent shockwaves throughout the world.”
NEXT… a couple of stories come from the NYTimes DealBook. First one we missed earlier on and with stocks continuing to throw up on themselves here – something we find very curious given all the good news – we think money flows is pretty easy to see – outta stocks into bonds – and NYTimes DealBook just puts that into perspective.
“Overall, investors pulled over $9 billion out of EPFR global-tracked equity funds while committing $4.8 billion to all bond funds tracked. Bond funds have now received net inflows every week since March 11, 2009,” EPFR said, Reuters reported.”
And finally, given it IS Friday, we figured we’d need to leave you with some GOOD NEWS. Used Home Sales actually UP in 2009! Break out the champagne and party like its, well, 1999? Or not.
Have you extended your duration yet today? Here is the Scribd versions of all of the above: