Riskless Return Ranking

Indian Funds Best Gold Deal as Producers Trail: Riskless Return - Bloomberg

As investors from George Soros to John Paulson snapped up bullion amid a decade-long rally, the best gold investment of the past two years was found in India, where funds tracking the metal surged while avoiding the stock market swings that hurt mining companies.  The BLOOMBERG RISKLESS RETURN RANKING shows India’s Reliance Gold fund returned 4 percent in the two years ended yesterday when adjusting for price swings, leading a group of exchange-traded products from the country that top a list of 44 gold-related investments, data compiled by Bloomberg show. Globally, ETFs provided the best risk-adjusted returns and company shares the worst.

ADP Makes an Expensive Turkish Landing

HEARD ON THE STREET: ADP Makes an Expensive Turkish Landing - WSJ.com

What price growth? European companies like Aéroports de Paris are keen to expand into vibrant emerging markets, as domestic economies stutter. The airport operator is paying $874 million for a 38% stake in Turkey-listed TAV Havalimanlari, whose airports have more than doubled passenger volumes in the last five years. But investors should question why ADP is paying a 32% premium for a deal that doesn't give it a seat at the controls.

The Bond Yield Conundrum

HEARD ON THE STREET: Explaining the Bond Yield Conundrum - WSJ.com

Are safe-haven bond markets on another planet? Risk appetite has come roaring back in 2012 as central banks have provided huge amounts of liquidity, economic data have been better than expected and the euro-zone crisis has receded—with Greece avoiding a disorderly default. But there has been no corresponding selloff in German bunds, U.S. Treasurys and U.K. gilts.

Falling Off the Commodity Supercycle

HEARD ON THE STREET: Falling Off the Commodity Supercycle - WSJ.com

Discussion of the supposed commodity "supercycle" tends to focus more on the "super" and less on the "cycle." But all true cycles eventually head down. This one could turn in 2014.
The current commodity supercycle can be dated to 1999. The major commodity indexes all hit their lows for the last 20 years early that year or in late 1998. Since then, the S&P GSCI index has risen fivefold, albeit with some wild swings.

The U.S. corn market got the sale it was looking for Tuesday

China Believed to Make Corn Purchase - WSJ.com

The U.S. Department of Agriculture reported private exporters sold 240,000 metric tons of U.S. corn for delivery to unknown destinations. Commodity traders widely believed the buyer was China. If so, it would be the nation's largest corn purchase this year amid surging demand and rising domestic prices.

No Surprise in Fed’s Statement; Gold Stays Put

Fed’s Statement Just As Expected; Gold Stays Glum - Focus on Funds - Barrons.com

With U.S. Federal Reserve officials staying the course in Tuesday’s Federal Open Market Committee statement, stocks have kept their gains and mostly shrugged. But the same isn’t true for gold.  In an increasingly familiar pattern, gold futures are at session lows and the SPDR Gold Trust (GLD) is down 1% at $163.36 after the FOMC gave no hint of its thoughts, neither “pro” nor “con,” on a third round of so-called quantitative easing, or any potential follow-up for last year’s “Operation Twist.” As we wrote this morning, gold appears increasingly vulnerable to signs that central banks are backing off the easy-money spigot. No news is, apparently, bad news for gold bugs. Eventually, when central bankers start turning the spigot off, gold buyers who piled in seeking refuge from the threat of runaway inflation will need to make a decision. That bout of inflation, so far, has come nowhere near materializing.

Italian-Law International Bonds Interest Paid By Greece

Greece Says It Paid Interest Due on 1999 Italian-Law International Bonds - Bloomberg

Greece, which last week carried out the biggest sovereign debt restructuring, said it paid the interest due on one of its international bonds yesterday.  The nation has 183 million euros ($240 million) of 5 percent bonds due March 2019 outstanding, that were issued in 1999 and pay interest on March 11. The payment date for the 9.1 million euros of interest fell on a Sunday, so the coupons were paid “the next good business day,” Petros Christodoulou, director general of the Athens-based Greek Debt Management Office, said in an e-mailed statement.

Europe's emissions trading scheme torn apart by critics

EU Emissions Trading Scheme Assailed at FAA Conference 

Critics vented frustration with Europe’s emissions trading scheme (ETS) during the FAA Forecast Conference March 8 in Washington, D.C. Leading the chorus of criticism, U.S. Transportation Secretary Ray LaHood hinted that the U.S. government is considering “enforcement measures” to counter the European Union regulation.

The stock market posted it's best day of the year

Wall Street rallies in best day this year as banks fly | Reuters

(Reuters) - The stock market posted its best day this year, with Tuesday's late spark coming from JPMorgan Chase & Co after the bank announced it will raise its dividend. Stocks gained throughout the session, helped by stronger-than-expected retail sales and benign comments from the Federal Reserve, which said recent strains on financial markets were easing. 

FCStone and IB Commodity Operations fined $260,000

FCStone and IB Commodity Operations fined for supervision violations

Washington, DC -- The U.S. Commodity Futures Trading Commission (CFTC) today announced the filing and simultaneous settlement of charges against FCStone, LLC, a Chicago-based registered futures commission merchant, and Commodity Operations Inc., formerly a registered introducing broker in New York, for failing to diligently supervise the account of a floor broker.  The CFTC order requires FCStone and Commodity Operations jointly and severally to pay a $260,000 civil monetary penalty and to cease and desist from violating CFTC regulations governing diligent supervision.

MBF Clearing sued by CFTC

MBF clearing sued by CFTC, accused of not segregating funds

March 13 (Bloomberg) -- MBF Clearing Corp. was sued by the Commodity Futures Trading Commission and accused of failing properly to segregate customer accounts from its own and of violating the Commodity Exchange Act.  MBF employees from September 2008 to March 2010 deposited $30 million to $60 million in customer funds into a U.S. government money market fund at JPMorgan Chase & Co. without properly segregating them, the CFTC alleged today in a complaint in federal court in New York.

CFTC Orders Goldman Sachs to pay $7 million

Goldman Sachs Execution & Clearing to pay $7 million for supervision failures

Washington, DC – The U.S. Commodity Futures Trading Commission (CFTC) today announced that Goldman Sachs Execution & Clearing, L.P. (GSEC), a registered futures commission merchant based in New York, N.Y., agreed to pay a $5.5 million civil monetary penalty and $1.5 million in disgorgement to settle CFTC charges that it failed to diligently supervise accounts that it carried from about May 2007 to December 2009.  The CFTC order also requires GSEC to cease and desist from violating CFTC regulations requiring diligent supervision.  Additionally, the order states that GSEC represented in its settlement offer that it has made changes in light of the events discussed in the order, including implementing enhanced supervision policies, procedures, and training.

Greece upgraded

Greece upgraded as Fitch says debt swap reduces default risk

March 13 (Bloomberg) -- Greece’s credit rating was lifted out of the default category by Fitch Ratings on optimism that a debt swap will reduce the risk that the country eventually reneges on its obligations.
Greece was raised four levels to B- from restricted default and given a stable outlook by Fitch, according to an e-mailed statement today in London. New government bonds have a B-rating, while debt that is not governed by Greek law has a C rating pending settlement on April 11, Fitch said.

Is the Harm Caused by MF Global Permanent?

US futures group: unclear if MF Global harm permanent | Reuters

(Reuters) - The head of the U.S. Futures Industry Association said on Tuesday it was difficult to tell whether the sector had been permanently damaged by the failure of broker MF Global, which shook traders' confidence in the markets.