NEW YORK, Aug. 22, 2013 /PRNewswire/ -- The free Summer E-Issue of Grant's Interest Rate Observer, a journal of the financial markets, is posted and available for download at articles.grantspub.com/summer-e-issue. This issue is an anthology of articles hand-picked for you to share with our compliments.
To subscribe please visit: www.grantspub.com/subscribe or call John D'Alberto: (646) 312-8890.
The free Summer E-Issue has nine articles including:
Demobilizing the reserves
(July 26, 2013) One day soon, banks will have on deposit at the Federal Reserve $2 trillion more than the rules require them to hold, a mountain of excess reserves that could, at the outer limit of what is theoretically possible in money and banking, support $20 trillion of new lending. Now under way is a speculation on the meaning of this imminent fact.
If accountants ruled the world
(June 28, 2013) In the second quarter, the net asset value of the portfolio that Ben S. Bernanke manages declined by one-third of 1%. In contrast, the net asset value of the portfolio that Bill Gross manages declined by 5.2%. How did the chairman, a non-moneymaker, outperform Gross, a storied moneybags? Especially how did Bernanke achieve this distinction with a portfolio leveraged 63:1? Footnotes to the Fed's H.4.1 report reveal Bernanke's secret: the Fed refrains from marking its securities to market.
(May 3, 2013) Before Babcock & Wilcox Co. (BWC on the Big Board) got into the nuclear power business, it was in the coal-fired power business, and before it became the Navy's virtual nuclear power monopolist, it was outfitting the engine rooms of President Teddy Roosevelt's Great White Fleet. Now unfolding is a bullish analysis of an underachieving stock.
Shot clock for capitalism
(March 8, 2013) Matthew Klecker, a paid-up subscriber from Chicago, was watching a basketball game when he got the big idea. It came to him in a flash that the Fed's toy interest rates give economic actors too much time to stall and dither. Zero-percent rates institutionalize delay in everyday business and investment transactions. They lead to postponement of needed adjustments. It's as if, he said to himself - and subsequently to the editor of Grant's - that basketball never got the shot clock.
Rain of grain
(March 8, 2013) Do you happen to know when the nation's farmers planted more acres to corn than the consensus of informed opinion expects them to plant in 2013? The year was 1936. Or when farmland values in the five state Seventh Federal Reserve District (the headquarters of which are in Chicago) appreciated as much over a three-year period as they did in the ZIRP-facilitated boom of 2010-12? It was in 1974-76. Now unspooling is the Grant's farm report. Cropland values, money printing and wheat are on the agenda.
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