CEF Weekly Review: Cracks in the Fixed-Income Foundation
Sunday, April 4th, 2010Joe Eqcome submits:
Outlook: The holiday shortened week produced further evidence ranging from improved consumer sentiment, the U.S. manufacturing index and payrolls of a slowly improving economy. Cracks in the fixed-income markets are becoming palpable with rising rates, sloppy auctions and concerns regarding the US mortgage markets—ranging from the Fed’s withdrawal to the resolution of its GSE’s. The “sucking sounds” you’re hearing will not be coming from Mexico but from the fixed-income markets as they gush towards equities.
CEF Weekly Review: The 13 closed-end fund (CEF) types on average posted a 0.8% increase for the week ending 4/2/10. The high-low spread was 2.7% vs. 2.0% last week. On an aggregate, unweighted basis the weekly average price change for the 500 plus CEFs was up 0.8%.
