Recommendation: Float, but float with caution!
Contact me for a rate quote!
So what's going on in the credit markets? If you've been following Stocks, you know that we had a volatile week last week; from Ana Connell's Burbank Market Report:
"The Dow plunged 224 points after a volatile session, the S&P was down 21.07 or 1.4% and Nasdaq was down 68.06 or 2.5%. Financial stocks are under pressure again, and they are bringing down most stocks."
Well today, Bonds were under some pressure as Financial bellwether WalMart seemed poised to open up strong with a positive earnings and future outlook!
Let's not forget that WalMart is a giant in the retail sector. Speaking of which, on tomorrow's Economic Calendar we have the important Retail Sales Report. If we see a strong Retail Sales number, it would be good for Stocks but bad for Bonds which means deteriorated pricing on our Rate Sheets!
As we maintain our position to cautiously float, check back for a reversal in strategy to lock-in those rates!
On September Pending Home Sales: We'll see the report later this afternoon! Now we all know the housing sector is struggling but we're not expecting a sales rate as bad as August's -6.5%. Economists are estimating a -2% sales rate.
Articles of Interest:
Morgan Stanley's Total Net Subprime Exposure At $12.7 Billion, Up From $6 Billion - READ FULL REPORT
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