BONDS » Current Rates, News & Information

JPMorgan Chase & Co. and Ally Bank are among financial institution blamed in lawsuits over misrepresented mortgage bonds. German lender HSH Nordbank AG is suing the banks involved in hopes of recouping $293 million in losses.

Photo: allyrose18

Starting Jan. 1, paper savings bonds will no longer be available for purchase, according to a recent announcement from the Treasury Department’s Bureau of Public Debt. In what is known as an “all-electronic initiative,” the government is making an attempt to reduce costs by switching to a digital format.

Paper Savings Bonds End in 2012

By Casey Bond

It may not be the stuff lively cocktail party banter is made of, but the often overlooked savings bond is making a name for itself as one of the best places to park your cash these days.

Civil fraud charges could be filed against several major credit rating agencies for their role in developing mortgage bond deals that helped bring about the financial crisis in 2008. The Wall Street Journal reported on Friday that the U.S. Securities Exchange Commission (SEC) is currently looking at the role these companies played in the crisis and exploring the possibility of holding them accountable.

SEC Reviewing Conduct of Companies

Government bonds have stood as a reliable long-term investment for decades, but the idea of “long-term” investing may be taken to a new extreme soon. In early February 2010, the Treasury Borrowing Advisory Committee (TBAC) announced the Fed is considering issuing bonds that mature as far out as 100 years. Well, it isn’t hard to figure out that the odds of outliving a maturity date that far off are slim-to-none.

Why would the Fed consider issuing a bond with a 100-year maturation date and why would anyone even consider purchasing this type of bond?

Have you ever turned over a couch cushion and found a couple dollars in change or pulled a $10 bill out of the pocket of your jeans while doing laundry? Remember the spark of joy you felt, however small, at finding missing money you didn’t even realize existed? Well, just imagine how you’d feel if you found out the government has been sitting on unclaimed money of yours, too, and all you have to do go get it.

That’s the position thousands of people are in and most don’t even know it. In fact, the government has over $33 billion in missing funds that is waiting on owners to claim. Maybe some of it belongs to you.

Major stocks are expected to see an average increase of 10 percent in 2011, according to a recent Barron’s report. The study found big-cap shares like Exxon Mobil Corp, Wal-Mart Stores Inc. and Pfizer Inc. will be among those leading the way in increases this year.

2011 to Mark Another Year of Gains

Treasury bond rates are increasing as the Fed attempts to stimulate the economy with multi-billion dollar bond buys. Unfortunately, ever since its decision to take part in the stimulative quantitative easing program, which involves buying $600 billion worth of Treasury bonds, investors have been pushed toward stocks.

Why the Fed is Buying Bonds

What is it about Harry Potter that makes preteen girls and grown men alike squeal with delight when a new book or movie is released? Maybe it’s the adventurous plots or just a really aggressive marketing plan, but I think it has a lot to do with the powerful insight Rowling’s characters share through their dialogue, both in print and onscreen.

Take Dumbledore–he’s meant to be a source of wisdom and guidance for the Hogwarts kids, yet his words often transcend the realm of wizardry and magic to be just as applicable to our reality as well. Apparently, this character has some pretty good investment advice, too.

It seems that banks are making a habit of using their free capital to lend money to the government via bond buys, which means that business and personal loans are not being distributed. Fed Reserve Chairman Ben Bernanke is not happy about this action because it means credit is not being extended when it could. But he believes new global banking rules could turn things around.

Banks Take Advantage of Low Interest Rates