Here Comes The Student Loan Forgiveness (Jun 2014)

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Source: Forbes – Here Comes The Student Loan Forgiveness

President Obama is in the process of expanding a student loan forgiveness program through his executive power (the infamous pen). Whether constitutional or not, he appears to believe that he can add more students to the eligibility list for a program he created by regulation in November 2013. This “Pay-As-You-Earn” program is partly about lowering the monthly payments to make student loans more affordable for graduates, but mostly it is the foot in the door to student loan forgiveness.

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Unstoppable $100 Trillion Bond Market Renders Models Useless (Jun 2014)

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Source: Bloomberg – Unstoppable $100 Trillion Bond Market Renders Models Useless

Notable excerpts:

If the insatiable demand for bonds has upended the models you use to value them, you’re not alone.

Just last month, researchers at the Federal Reserve Bank of New York retooled a gauge of relative yields on Treasuries, casting aside three decades of data that incorporated estimates for market rates from professional forecasters. Priya Misra, the head of U.S. rates strategy at Bank of America Corp., says a risk metric she’s relied on hasn’t worked since March.

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Foreign Grip Loosens on Treasuries as U.S. Investors Buy (Mar 2014)

 

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Source: Bloomberg – Foreign Grip Loosens on Treasuries as U.S. Investors Buy

Notable excerpts:

Overseas creditors such as China and Japan enabled the U.S. to spend its way out of the recession as they gobbled up 80 percent of the nation’s Treasuries. Now, their holdings are dropping toward the lowest level in a decade, while homegrown investors have picked up the slack.

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