Front Page (continued)

Advertisement

Recent Tweets

Follow capflowwatch on Twitter
Page 70 of 72« First...102030676869707172
Q3 2005

Life insurers still favor bonds

Life Insurers' Assets

Life insurance companies invest pension and life insurance reserves primarily in bonds, according to Federal Reserve Flow of Funds Table F 117 for Q3 2005. Although favoring agency securities and treasuries in 2002, life insurers quickly returned to their traditional investment behavior of buying mostly corporate bonds.

Since 1997, pension funds have become the principal business of life insurance companies, as indicated by the relative size of life insurance and pension funds reserves.

US Bond Market

Rate sensitivity and bond issuance

Interconnected markets

This article describes the factors that influence the four primary US bond markets: Treasuries, Agencies, Municipals, and Corporates.

The analysis indicates that a high percentage of the supply side of the bond market is opportunistic and sensitive to interest rates, which explains why long-term interest rates have been relatively stable, despite increasing demand.

This analysis also suggests that should the flow of funds from the trade deficit suddenly dry up, the first impact would be a rapid reduction in the size of the residential mortgage market, rather than a sharp increase in interest rates.

World Economy

What is ‘international liquidity’?

Hotel Mount Washington, Bretton Woods, 1944

It used to be that the term ‘international liquidity’ meant the relative amount of resources available to a nation’s monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation’s currency held by foreigners.

After Bretton Woods and the advent of the dollar-gold exchange standard, liquidity came to mean access to dollars, either held as reserves or as credit lines, or the SDR system maintained by the International Monetary Fund.

Page 70 of 72« First...102030676869707172

Featured articles on inside pages

Stock buybacks

Stock buybacks dry up

Since 1982, US equities have been driven upwards by stock buybacks. Federal Reserve statistics show corresponding sales of stocks as executives exercised options to take advantage of manipulated prices. More ...

Securities Analysis

Can index funds protect you against inflation?

Historical evidence suggests that equities do not offer fool-proof protection against inflation. Inflation brings high interest rates, confounds accounting practices, and is associated with bad government. More ...

US Politics

What is the future of private pension plans?

Between 1999 and 2002, US private pension funds lost US$ 1.2 trillion in value. It would almost seem that pension fund managers had been speculating with retirement money, attempting to beat each others' short-term performance statistics, with little interest in safeguarding the assets of plan beneficiaries. More ...

US equities

Sarbanes-Oxley and the shortage of equities

The Sarbanes-Oxley Act of 2002, by discouraging companies to go public, will exacerbate the shortage of equities, with a negative effect on the US stock market, although this was not the intent of its authors. Poorly drafted, ill-conceived, and unfair this law does little to protect investors.
More ...

US Bonds

Bond demand exceeds supply for a decade

Over the decade, 1995-2004, the demand for US bonds of all types has surpassed new bond issues in eight of the last ten years. This is the reason that bond prices have held firm, even in 2003, when net new issues reached almost $1.8 trillion. More ...

World Economy

What Is ‘International Liquidity’?

It used to be that the term 'international liquidity' meant the relative amount of resources available to a nation's monetary authorities that could be used to settle a balance of payments deficit. In the days of the gold standard, this would mean access to gold that could be used to redeem a nation's currency held by foreigners. More ...

Custom Search

Subscribe / Follow

Subscribe via RSS

Site navigation

Capital Flow Watch has hundreds of articles on economics and investments.

Articles have excerpts on the front pages, and on tag, category, search and archive pages.


Review capital-flow-watch.net on alexa.com

» Blog Guide

Excerpts by Category

Article Calendar

March 2012
MTWTFSS
« Sep  
 1234
567891011
12131415161718
19202122232425
262728293031 

Stock Quotes

Indu0.00  chartN/A
NASDAQ3067.92  chart +0.15%
S&P 5001397.11  chart +0.31%

Ftse 1005854.89  chart +0.16%
Dax6995.62  chart +0.21%
Cac 403476.18  chart +0.11%

Nikkei 22510011.47  chart -1.14%
Hang Seng Index20668.801  chart -1.11%
Sti2990.08  chart +0.36%

Eur To Usd1.3271  chartN/A
Usd To Jpy82.345  chartN/A
Gbp To Usd1.587  chartN/A

1969-12-31 19:00