April 2013 In April, the stock market continued to climb “a wall of worry,” as investors feared that earnings would disappoint despite better than expected economic activity in the first quarter. Compounding that fear was the 2-day 9.40% slide in the price of gold, which reminded investors that market panics occur from time to […]
Michael Kastner, principal at Halyard Asset management in New York said bond buyers were usually wary of buying debt from companies seeking to buy back shares but that because Apple was sitting on so much cash, this was likely to be a very popular sale. Kastner said it was part of a larger trend as […]
“Corporations are really coming out of the woodwork after earnings season to sell debt and buy back stock,” says Michael Kastner, principal at Halyard Asset Management. Crowds line up for a bite of Apple’s big bond
“As a bond investor you don’t want to buy debt which is being used to fund share buybacks, but in the case of Apple, it’s a drop in the ocean compared to the size of their overall cash holdings,” said Michael Kastner, principal at Halyard Asset Management. Apple cleans up with $17bn US bond issue
March 2013 For the month of March, the bond market was as volatile as the weather in the Northeast, with prices plunging with the falling late winter snow and rising into month end as the mercury began to rise. During the month, economic activity was decidedly upbeat, surprising investors who were prepared for a […]
Michael Kastner, a principal at Halyard Asset Management, said US Treasury yields look vulnerable if economic data surprises positively. “Traders and real money investors are looking to lessen their interest rate sensitivity, and are looking at floating rate notes and short dated bonds,” he said. More bond investors bet on US rate rise
Could it happen here? The recent news that the government of Cyprus is considering a one-time tax on the saving deposits held at Cyprus based banks is yet another example of the riskiness of holding more than a nominal amount of cash in a bank account. While Cyprus if far different from the United States, […]
February witnessed a reversal in market sentiment as the bond market stabilized and equities continued their upward trajectory. Performance of the capital markets in February reminds us of the memorable line from the 1978 college frat-party movie, Animal House, in which Dean Wormer advises “Flounder” that “…fat, drunk, and stupid is no way to go […]
“The equity market looks a little bit expensive, with some blue-chips trading at frothy levels, especially as earnings expectations continue coming down for this year,” says Michael Kastner, principal at Halyard Asset Management. “I am sceptical about some of the bullish analysts’ earnings forecasts, and there is a big question over the profits outlook for […]
“If we focus back on the sequester, we could actually see yields fall a little more before getting to higher levels,” said Michael Kastner, principal at Halyard Asset Management. Mediocre Sale Sets Treasurys Back for Third-Straight Session