US Savings Bonds

From their introduction, U.S. savings bonds have been one of the most well-used  investments, largely due to the government’s iron-clad guarantee that you won’t lose your money.  You may think of savings bonds as being overly conservative investment vehicles, mostly given to you as a kid by Aunts, Uncles, and Granparents on your birthday, or some other holiday.  That latter part is true, but they are actually less conservative, and more flexible that you might think. Over the last 10 years, savings bonds have handily outperformed both stocks and real estate, with none of the associated risk.

Investing in Series I Savings Bonds

Series I savings bonds are an interesting setup. They offer both a fixed rate of return, that’s guaranteed, as well as an inflationtionary adjustment that protects your investment should prices go up. Additionally, the US Government guarantees their value and unlike your stockbroker, doesn’t charge any fees for buying.

Series EE Savings Bonds

These are the savings bonds you have probably received as a birthday gift. They have some of the same benefits of  Series I bonds but the current face value is calculated, and investment potential, are different.  These bonds are very unique in that by investing in them, you are bascially loaning money to the US Treasury, at a  predetermined, and fixed rate of return. The bonds don’t fluctuate in earnings or value, so you can cash them in for their printed face value plus the predetermined interest at any time, with little or no penalty.

NEW YORK, NY —
Private equity firms had a successful first half of 2011 as asset prices appreciated. On the downside, as The Wall Street Journal reported this week, these companies may face headwinds in the second half of the year as prices of stocks have fallen, “making it harder to monetize gains by selling portfolio companies.” The Bedford Report examines the outlook for companies in the Asset Management Industry and provides investment research on American Capital Ltd. (NASDAQ: ACAS) and Fortress Investment Group LLC (NYSE: FIG). Access to the full company reports can be found at:

www.bedfordreport.com/ACAS

www.bedfordreport.com/FIG

The state of the global economy is making it harder for asset managers to boost profits. Regarding the most recent quarter, Michael Novogratz, one of Fortress Investment Group’s principals, explains that there was “a breakdown in both consumer confidence and corporate confidence” because of Europe’s inability to solve its debt problems and “the political gridlock that we saw in D.C. and the perceived inability to really deal with the fiscal issues.”

In the company’s fiscal second quarter, Fortress Investment said that Assets under management rose to $43.8 billion at June 30 from $43.1 billion as of March 31 and $41.7 billion a year earlier.

The Bedford Report releases market research on the Asset Management Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

Fortress Investment also reinstated its dividend. The company’s directors approved a quarterly dividend of 5 cents a share in the fourth quarter. Its last payout, in the second quarter of 2008, was 22.5 cents per share. For the second quarter FIG’s pretax distributable earnings were $46 million, or 9 cents per share, down from $73 million, or 14 cents a share, a year earlier.

American Capital Ltd. is one of the very few asset managers that does not pay a dividend, although the company said it strengthened its balance sheet in the recent quarter, paying down $100 million of securitization debt, and improving its asset coverage ratio to 376%.

The Bedford Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above-mentioned publicly traded companies. The Bedford Report is compensated by other third party organizations for advertising services. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at http://www.bedfordreport.com/disclaimer.

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SymbolPriceChangeCRZBF.PK2.90-0.10MCO29.15-2.52{“s” : “CRZBF.PK,MCO”,”k” : “a00,a50,b00,b60,c10,g00,h00,l10,p20,t10,v00″,”o” : “”,”j” : “”}

* Japan (NYSE: MCO – news) sold 1 trillion yen to weaken currency

* Analysts expect safe-haven yen, franc to remain strong

* ECB says would buy Portuguese, Irish bonds
(Updates prices, adds quotes, changes byline)

NEW YORK (Xetra: A0DKRK – news) , Aug 4 (Reuters) – The yen fell sharply on
Thursday after Japan intervened to curb its strength to support
the country’s export-led economy, but analysts did not expect
any lasting impact given concerns about the global economy.

Official yen-selling pushed the dollar roughly 4 percent
higher to 80.25 yen on trading platform EBS, well off a low of
76.29 set on Monday. On Wednesday, the Swiss National Bank had
unexpectedly cut interest rates to cap a soaring Swiss franc.

The Japanese currency trimmed losses during New York
trading, however, while the franc gained broadly as investors’
strong demand for safe-haven assets persisted on fears a
recovery in the global economy is losing momentum.

“The fact that our equity, bond and FX indicators reveal a
good number of real-money investors are seeking safety in
respective asset markets and it’s not just speculative activity
driving the Swiss franc and yen higher suggests risk appetite
is firmly on the back foot,” said Samarjit Shankar, managing
director of global FX strategy at BNY Mellon in Boston.

The dollar last traded at 78.83 yen , up 2.3 percent
on the day. The euro gained 1 percent to 111.43 yen .

Japan sold one trillion yen ($12.6 billion). Finance
Minister Yoshihiko Noda said Japan had consulted its
international partners but acted on its own. The intervention
in Asia and London pushed the yen to a three-week low against
the dollar. For more see [ID:nL3E7J409F].

To support those efforts to weaken the yen, the Bank of
Japan eased monetary policy by boosting asset purchases.

Japan’s yen selling was its first since March 18 when the
Bank of Japan and other major central banks jointly intervened
after the yen surged to a record high versus the greenback.

Commerzbank (Other OTC: CRZBF.PK – news) analyst Lutz Karpowitz said, however, that
efforts by both Japan and Switzerland to weaken their
currencies were unlikely to spark a trend reversal.

“There are hardly any alternatives for investors looking
for a safe haven within the G10 universe,” Karpowitz wrote in a
note. “This fact is likely to prevent a stronger upward
correction in dollar/yen. In the end we are therefore likely to
see a sideways move.”

Japan tries to tame yen: [ID:nL3E7J409F]

Timeline on yen intervention: [ID:nL3E7J20DQ]

Japan faces uphill battle on yen: [ID:nL3E7J408Y]

Past Japan FX intervention: http://link.reuters.com/tyf82s

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

The euro was last down 1.3 percent at $1.4137 ,
having hit a two-week low of $1.4111 on EBS.

Traders noted more automatic sell orders under the $1.4100
area, with a break likely opening the way for a move lower to
around $1.4068, the July 19 low.

The European Central Bank resumed buying government bonds
after a four-month break and offered a new round of funding to
commercial banks in response to a worsening euro zone debt
crisis.

The ECB said after leaving interest rates unchanged at 1.5
percent that it would broaden its liquidity operations as it
revived its bond buying program in the secondary market by
buying Portuguese and Irish bonds.

But the Italian government bond yield premium over Bunds
rose to euro era peaks as the ECB had no immediate plans for
buying Italian and Spanish bonds. [ID:nL6E7J42I6]

“The main takeaway from today’s announcement is the limited
prospects for further ECB tightening, which should weigh on the
euro,” said Vassili Serebriakov, currency strategist at Wells
Fargo in New York.
(Additional reporting by Julie Haviv; Editing by James
Dalgleish)

Take a look at the graph below, which shows the Dow since the end of WWII. Bearing in mind that in real terms, a thousand points on the Dow was worth more in the past than today, where do you think we ought to be, if the market was “normal”, or better yet “sane”?

Adjusting for inflation (CPI-U), and looking at the Dow’s progress from August 1945 to August 1980 (around when the Great Inflation really started), then extrapolating, I figure the Dow should be a shade under 3,000 points today.

The rest is, effectively, monetary bubble – which is not to say it can’t continue.

INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.

DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content, whether incorporated in or linked to this blog.

When it comes to investing, you cannot settle for anything less than the fastest and most efficient news feed. That is why we created Benzinga Pro. Sign up for a free trial today!

Post office schemes managed by city-headquartered National Savings Institute (NSI) offer an average rate of 7.5% to 8%, with 1% more for the senior citizen deposits. Bank deposits are now offering interest rates from 9.5 to 10%. This has led to a large-scale diversion of funds from post office schemes to banks. This can be gauged from the phenomenon of withdrawals exceeding the deposits, said sources in the government.

The gross collections in the first quarter of current fiscal stood at Rs 45,859.95 crore. However, the account holders also withdrew Rs 47,121.17 resulting in a net reduction in corpus of Rs 1261.22 crore. The gross collections went down by 24% compared to same period last year.

Earlier the collections had slipped into the negative zone during the financial years 2007-08 and 2008-09 with the net collections down by Rs 10,000 crore and Rs 9,000 crore respectively. Those days funds were diverted to the equity markets that were on a bull run. With the slump in the bourses, small savings collections saw a rebound, only to come down again during the current year. A similar situation had occurred in 1990s too, say sources.

However, there was also a time during 2009-10 when the interest rates in banks were lower than small savings, with the latter demanding a level-playing field. The net collections stood at Rs 37,000 crore during the year 2009-10 and Rs 35,000 crore during 2010-11.

Experts say it is a cyclical phenomenon, with the small savings collections seeing ups and downs from time to time. There was also a time when the collection grew due to the low bank rates. Rates in these schemes have remained constant, so whenever the returns from other agencies go up, the funds flow out and vice-versa.

“The bank deposits terms range for a year or two, there are chances that the bank rates may come down or those on small savings go up during the coming days. If that happens, funds will return to the post office plans,” said Ranjit Dani, a chartered financial consultant.

Sources in the ministry of finance say that over the years the government too has changed its stance and is projecting post office savings as one of the many saving options. Two decades ago, there was a stress mobilising maximum funds. Even as the government has fixed target of net collections to the tune of Rs 65,000 crore for this fiscal, a lesser mop up into these scheme would benefit the government.

The schemes are incurring a deficit. Last year, the government had to chip in Rs 9,200 crore to plug the gap between the earnings and interest liabilities on them. This year the deficit is expected to be at Rs 6,500 crore, said a source.

Press Releases

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August 8, 2011 8:30 AM EDT

ROCKVILLE, Md.–(BUSINESS WIRE)–
Washington Real Estate Investment Trust (WRIT) (NYSE: WRE) has entered
into several contracts with a single buyer to dispose of its entire
industrial portfolio as well as two office assets. The assets to be sold
comprise a total of approximately 3.1 million square feet. The sales
prices under the contracts aggregate to $350,000,000.

The assets to be sold consist of 16 industrial assets (comprising the
entirety of WRIT’s industrial division) along with the Crescent and
Albemarle office buildings. The contracts consist of five separate
purchase and sale agreements, each covering one or more separate assets.
Three of the contracts (which aggregate to $235.7 million of assets) are
expected to close on or about September 1, 2011. An additional contract
(representing $44.6 million of assets) is expected to close on or about
October 3, 2011. The final contract (representing $69.7 million of
assets) is expected to close on or about November 1, 2011. Each of the
contracts represents a separate binding obligation to purchase the
associated assets. The escrow deposits under the contracts aggregate to
$20 million.

“In initiating these sale transactions, WRIT has taken a major step
towards executing on a strategic goal we set for ourselves at the
beginning of the year. Having our industrial portfolio under these
contracts enables us to focus our attention on redeploying expected
sales proceeds in assets that better fit our long term strategy of
acquiring properties inside the Beltway, near major transportation nodes
and in areas with strong employment drivers and superior growth
demographics,” stated George F. “Skipâ€� McKenzie, President and Chief
Executive Officer of WRIT. “We’re delighted to be moving forward with
our strategic plan at this current pace.�

WRIT is a self-administered, self-managed, equity real estate investment
trust investing in income-producing properties in the greater Washington
metro region. WRIT owns a diversified portfolio of 86 properties
totaling approximately 11 million square feet of commercial space and
2,540 residential units, and land held for development. These 86
properties consist of 26 office properties, 16 industrial/flex
properties, 18 medical office properties, 15 retail centers and 11
multifamily properties. WRIT shares are publicly traded on the New York
Stock Exchange (NYSE: WRE).

Certain statements in this press release are “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements involve known and unknown risks,
uncertainties, and other factors that may cause actual results to differ
materially. Such risks, uncertainties and other factors include, but are
not limited to, the potential for federal government budget reductions,
changes in general and local economic and real estate market conditions,
the timing and pricing of lease transactions, the effect of the current
credit and financial market conditions, the availability and cost of
capital, fluctuations in interest rates, tenants’ financial conditions,
levels of competition, the effect of government regulation, the impact
of newly adopted accounting principles, and other risks and
uncertainties detailed from time to time in our filings with the SEC,
including our 2010 Form 10-K and first quarter 2011 Form 10-Q. We assume
no obligation to update or supplement forward-looking statements that
become untrue because of subsequent events.

Washington Real Estate Investment Trust (WRIT)William T. CampExecutive
Vice President and Chief Financial OfficerTel: 301-984-9400Fax:
301-984-9610bcamp@writ.comwww.writ.com

Source: Washington Real Estate Investment Trust (WRIT)

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The banks are Allied Banking Corp., Banco de Oro Unibank, Inc., Bank of the Philippine Islands, ChinaBank Savings, Developmental Bank of the Philippines, East West Banking Corp., Maybank Philippines, Inc., Philippine National Bank, Philippine Veterans Bank, RCBC Savings Bank, and Security Bank Corp.

The 12 banks have a combined network of about 3,000 branches.

“[These banks] speak well of their long-term commitment to develop an inclusive Philippine financial system and a new generation of Filipinos who are regular savers,� BSP Governor Amando M. Tetangco, Jr. said in a speech during the program’s launch.

“Together, [the banks’] Kiddie Account Program makes the opening of savings account affordable and convenient in many parts of the country,� he added.

The savings campaign will run in tandem with the BSP’s joint program with the Department of Education that incorporates lessons on money and management in public elementary schools from in Grades 1 to 4, Mr. Tetangco said.

“Financial education is an advocacy we should all work on,� he said, noting that the national savings rate “remain(s) low.�

Latest BSP data show 36.3 million deposit accounts with combined deposits worth nearly P5 trillion.

“However, the reality is that 23.3 million of these accounts or 64% of the total have balances of only P5,000 and below,� Mr. Tetangco said.

“We have the opportunity through this Kiddie Account Program to improve these numbers. Our public elementary school pupils number at least 12 million or 92% of ‘grade-schoolers’ in the country. There is so much potential here,â€� he added. — A. S. O. Alegado

Demand for the certificates has helped boost inflows to the government-backed savings provider by £1bn in the three months to June, compared with the sums deposited in the same period last year. But their popularity has not been without problems.

Savers eager to take advantage of the reissued certificates – which pay 0.5 percentage points above the rise in the Retail Prices Index (RPI) – have reported difficulties in using the online application forms, and waiting times of up to an hour to speak to an assistant by phone.

Potential customers have also written to the FT to complain that the online process is not, in fact, a complete online experience. Applications made are not immediately confirmed, nor can accounts opened be viewed online.

Dug Falby, an e-commerce consultant, wanted to put money into NSI’s certificates but found the process frustrating. “The website moves between interactive and static pages and, in the end, I gave up,” he said. “It’s a less clean process than that of other online banking products and I think it should be available at the Post Office.”

NSI said that it had expected to see a high demand for the certificates when they were released and had hired extra help to man the phones.

Regarding the online application process, a spokesperson confirmed that the Index-Linked Certificates are not available to view online. Customers can complete the application process via a computer, entering their details and the account from which they wish to transfer the funds. But they must then wait for three days for a letter to be sent from NSI confirming their application and requesting a handwritten signature.

Savers cannot view their balances online but they can access an online calculator to work out how much interest they have earned so far. However, it is not, admitted the spokesperson, a “full” online experience.

NSI’s certificates are not being made available at the Post Office. Instead, the Post Office is offering its own inflation-pegged bond paying 1.5 percentage points over RPI on savings held for five years. However, as this is not an NSI product, the return is not tax free or guaranteed by the government.

Last week, the Post Office, which offers accounts run by Bank of Ireland, came under fire when a computer problem left millions of customers unable to access their money. The Post Office said the problem was resolved within the same day.

NSI enquiries can be made via 0500 007 007. Post Office 08457 22 33 44.