(Bloomberg) — Cathie Wood flagged the risk of “serious losses” in the trillion-dollar auto debt market, after statistics showed US used vehicle prices decreased in September.
The Ark Investment Management LLC founder and chief executive officer cited a shift in consumer taste toward electric cars as leading to a drop in the price of gasoline-powered vehicles, according to a tweet that referenced data released by Manheim Auctions, the world’s largest reseller of used vehicles.
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The Wall Street heavyweight is in talks to buy Palmer Square Capital Management, the husband-and-wife-run firm that has grown to become one of the biggest issuers of collateralized loan obligations.
Economists in a recent Bloomberg survey expected policymakers to hold their outlooks for unemployment and inflation largely unchanged.
Palmer Square engaged bankers who have been fielding offers and whittling down a list of potential bidders.
With Treasury yields out to the 10-year trading well above 4% and longer maturities sitting above 5%, investors are getting better compensated for holding bonds.
From Capital Group to Insight Investment, Natixis and Pacific Investment Management Co., the message is the same: The sweet spot is the "belly," or the five-year area of the Treasury curve.
