Jun

24

MUB has dropped from 4% return in 2013 (as of may 1) to Negative 4% as of yesterday. This is creating a liquidity issue as ETF can't return cash as quickly as ETFs are being redeemed, and so in kind redemptions are occurring. We had been warned that mispriced debt was going to reverse quickly once the FED gave indications they weren't about to keep up their manipulations, and of course, China, which also needs cash might be selling a few treasuries to deal with the need for cash. When the rich man in Brazil has to sell equity for pennies on the dollar in private transactions, it's time to pay attention.


Comments

Name

Email

Website

Speak your mind

Archives

Resources & Links

Search