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With so much growth coming from outside the U.S., getting global tax and treasury strategy right matters a lot.
"The Treasury market was another sea of yawns," wrote Bill O'Donnell, head of U.S. Treasury strategy at RBS Securities, in his market wrap after Moody's warning.
In a note to clients, William O'Donnell, head of U.S. Treasury strategy at RBS, said this "mostly removes a big near-term Treasury market risk:" a shift to a more hawkish tone when Ben Bernanke, the Federal Reserve chairman, appears before Congress's Joint Economic Committee on April 14.
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The Economist is part of The Economist Group, which includes the Economist Intelligence Unit, which provides industry analysis, and EuroFinance, which organizes conferences on treasury strategies; it also publishes analysis of European news through European Voice and U.S. news and politics through Roll Call and CQ Weekly (a Congressional Quarterly publication).
If this scenario plays out, owning mid- or long-term Treasurys is a losing strategy.
In a little-noticed speech filled with patriotic themes, the treasury minister, Wojciech Jasinski, outlined a strategy last month to sell 49percentt of the government's holdings to "Polish investors" in blocks of 5percentto10percentcent.
Most people who bought Treasuries were abandoning their investment strategy, and wealth advisers say that is more troubling than paltry returns.
And those countries, like China, which peg their currencies against the dollar, are forced to buy large amounts of Treasuries as part of that strategy.In this section Dangerous froth The not-so-little guy Leaning experience Subcrime High-speed slide Paper promises, golden hordes Divided and overruled?
So-so retail sales make it difficult to predict whether the Federal Reserve will move in the near future to taper its monthly purchases of Treasuries and mortgage debt, a strategy to boost borrowing.
Many of the facts are in dispute but the warring parties appear to agree that a charitable fund set-up by Cincinnati's David Parlin is owed some $4 million it sunk last year into a purported high-yielding investment strategy involving U.S. Treasuries that was pitched by New York financier Vassilis Morfopoulous.
Mr. Moynihan has quickly moved up Bank of America's corporate ranks, overseeing its strategy, commercial lending and treasury functions before taking charge of wealth management.
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