KTCCapital, Author at 12 Press Release

KTC Capital Management Reports Higher Markets Due to Easing Japan Fears

KTCCapital — Tue, 22 Mar 2011 03:13:39 +0000

(12PressRelease.com) World stock indices are sharply higher as indications of progress at the Fukushima nuclear plant in Japan counteract worries over the oil price impact of the westâ€˜s involvement in Libya reports KTC Management.

The FTSE global equity benchmark is up 1.57 per cent, and the S&P 500 is up 1.52 per cent, having over recent days recaptured half of its losses since dropping from the February 17 peak. A more positive mood in the markets is reducing the need for traditional havens such as high yield Treasuries, gold and the Swiss franc.

Growth-focused commodity currencies such as the Australian dollar are in demand as investors bet that the global economyâ€˜s fundamentals are strengthening further. The Global Steel Association has lent support to this trend by announcing on Monday that global steel production rose 9 per cent in the first two months of the year, bolstered by sharp rises in Asian production.

A rally in equities point to the fact that investors place greater weight on an improving Fukushima condition than the ongoing tensions in Libya. It is worth noting, however, that many commodities have shifted into negative territory as the US session has progressed. The Japanese government will be pleased to see that the Yen has settled below the Y81 mark to the dollar following last weekâ€˜s G7 intervention.

Investment Disclaimer: This release is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. Although the statements of fact in this release are obtained from sources that KTC Capital Management consider reliable, we do not guarantee their accuracy and any such information may be incomplete or condensed. Also views expressed in this release are based on research materials available from sources considered reliable. Views are subject to change on the basis of additional or new research, new facts or developments. The investment risks described herein are not purported to be exhaustive, any person considering an investment should seek independent advice on the suitability or otherwise of the particular investment. Investment products are not bank deposits or obligations or guaranteed by KTC Capital Management or any of its affiliates or subsidiaries unless specifically stated. Investment products are not insured by government or governmental agencies. Investment and Treasury products are subject to Investment risk, including possible loss of principal amount invested. Past performance is not indicative of future results: prices can go up or down. Investors investing in investments and/or treasury products denominated in foreign (non-local) currency should be aware of the risk of exchange rate fluctuations that may cause loss of principal when foreign currency is converted to the investorsâ€˜ home currency. Investment and treasury products are not available to U.S. persons. All applications for investments and treasury products are subject to Terms and Conditions of the individual investment and Treasury products. Customer understands that it is his/her responsibility to seek legal and/or tax advice regarding the legal and tax consequences of his/her investment transactions. If customer changes residence, citizenship, nationality, or place of work, it is his/her responsibility to understand how his/her investment transactions are affected by such change and comply with all applicable laws and regulations as and when such becomes applicable. Customer understands that KTC Capital Management does not provide legal and/or tax advice and are not responsible for advising him/her on the laws pertaining to his/her transaction.

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KTC Capital Management Signal Buy on US Municipal Bonds

KTCCapital — Sat, 26 Feb 2011 07:23:55 +0000

(12PressRelease.com) KTC Capital Management has a solution for battered investors have been abandoning the muni bond market at a fast pace for months over fears of a sustained recession and political havoc in state capitals across America.

The mass exodus from this fixed income security has caused an under-value condition for most major muni issuers, providing smart investors who have waited on the sidelines an opportunity to get some significant bargains.

Municipal bonds are predominantly popular among wealthy individual investors because the earnings derived from numerous classes of these debt securities are tax exempt. Nearly 42% of the $2.7 trillion muni-bond market is held by individuals, says the Federal Reserve.

Most of these investors have become deeply concerned by relentless accounts of state and local fiscal troubles. Demonstrations protesting efforts by a handful of Republican governors to reduce union influence at state houses and municipal complexes in Indiana, Ohio, and other states have only added to worries that state and local governments are weakened financially, potentially nearing default on their debt obligations in the near term.

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KTC Capital Management Mid-term Bonds Approaching 4%

KTCCapital — Tue, 08 Feb 2011 06:43:42 +0000

(12PressRelease.com) For the first time in nine months, KTC Capital fixed income traders are seeing the benchmark 10 year treasury yield nearing 3.7%, further indication of a strengthening U.S. economy and mounting concerns over inflation.

Since the fall of 2010, fixed income security prices have been falling as yields have crept higher. This will result in the 10 year yields passing 4% in the first half of the year, and conceivably 4.5% in the first quarter, according to KTC Capital economists. They go on to state that the 4% level would be reached sooner if it were not for the Fed's quantitative easing program. Once that program ends, it will allow the market to resume natural levels.

In the interim, bond investors will be monitoring Treasury sales this week, when $32 billion worth of three-year notes are due to be auctioned, followed by $24 billion worth of 10-year notes and $16 billion worth of 30-year notes. In advance of the auctions, Treasury prices were little changed early this week, as U.S. stocks got a boost from an onslaught of corporate mergers. Investors tend to shed bonds when they are more certain of an economic recovery.

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KTC Capital Management Reports Higher US Debt Levels

KTCCapital — Wed, 19 Jan 2011 07:24:07 +0000

(12PressRelease.com) The economics research department of KTC Capital Management issued a release today indicating a growing debt load for the United States. Foreign investors built their stake by purchasing $150 billion of long-term Treasuries in October and November alone according to the US Department of the Treasury.

Treasuries have always been considered low risk as they are backed by the U.S. government. The latest data indicate that their safe-haven standing has not deteriorated among the international investing community as of yet, despite the country's towering budget deficit.

While foreigners increased the U.S. debt holdings, U.S. nationals slowed their spending on foreign bonds. Americans bought $36 billion long-term foreign securities in the same period. That created an offset of $114 billion for the two months, a larger differential than has been the norm. Analysts explain this anomaly is due to the larger European debt crisis making the US a lesser of evils when investors look to the bond market.

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KTC Capital Management Bullish on Australian Fixed Income and Preferred Shares

KTCCapital — Wed, 05 Jan 2011 23:58:19 +0000

(12PressRelease.com) The bond market has had a great run, and according to the KTC Capital Fixed Management Income Desk, that trend will continue, as long as one does not count American bonds as a portfolio addition.

U.S. dollar bonds have done poorly due to higher interest rates and a weakened currency relative to the majors. In contrast, the Australian non-dollar bonds have done very well because they are dominated in Australian dollars. For the same rationale, Australian corporate preferred shares have become more attractive as they access real growth and dividend cash flow without US currency risk.

Currently many countries including Australia are recovering significantly faster than the United States. Looking at global investment as a whole, one can go all over the world and look at some very interesting companies that are approving significant dividends. It is a sector often overlooked by typical investment advisors to the detriment of their clients.

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2011 Forecast: KTC Capital Expects Massive Earnings in Emerging Markets

KTCCapital — Fri, 24 Dec 2010 00:02:51 +0000

(12PressRelease.com) KTC Capital revealed today they are expecting 2011 to be the year of the smaller economy, and savvy investors will have the opportunity to profit heavily.

The world recession has not only tarnished the status of the G20 member states, but everyone else as well. In many cases this is unfair as there are countries with a smaller GDP but resource heavy. The result is vastly undervalued equities, government issued securities and to a lesser extent, real estate. KTC Capital offers carefully selected hedge funds that are ideally positioned to take advantage of the inevitable rise of value when the broader market corrects.

Brazil, India and China have produced far greater returns than the traditional market. The cycle of capital investment, growth, and increased production and wealth have put these countries of the world stage. There are many profitable opportunities in these countries still to be had, but forward thinking investors are already looking to the next wave.

Last summer Africa, Latin America and the Caribbean saw nearly a billion dollars of capital influx from traditionally conservative players. This is double the amount from the year before. As with Brazil and China a decade ago, investor entrepreneurs are willing to look past the unfamiliarity in order to obtain returns unheard of in the first world. The key is partnerships with local firms and significant, quality research in order to reduce risk. KTC Capital has done this for its clients by packaging investments in the form of hedge funds to simplify participation in this sector.

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KTC Capital Management Focus on Precious Metals

KTCCapital — Thu, 25 Nov 2010 07:30:17 +0000

(12PressRelease.com) In spite of record breaking gold prices this year, KTC Capital continues to advise its top clients to increase their position in their gold hedge products in order to build wealth during sustained financial uncertainty worldwide.

The KTC Capital gold hedge fund is structured to benefit from the precious metalâ€˜s price fluctuations. Straight gold shares and exchange traded funds (ETFâ€˜s) are extremely risky in comparison as there is complete downside exposure if gold prices fall. This risk is increasingly likely as spot gold hit a record of $1,423 last week, without compensating for inflation.

During the first two quarters of 2010, hedge structures using financial institution equities did remarkably well. Now that sector has destabilized due in part to the Irish bailoutâ€˜s effect on the Euro. This leaves the KTC gold hedge product as the safest way to increase capital through the remainder of the global recession.

To diversify, representatives of larger portfolios also pick up selected underpriced technology stocks. In spite of volatility, this market segment has been depressed for many years and bargains can be found provided the investment is long term.

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KTC Capital Supports Asia Currency Measures by G20

KTCCapital — Tue, 16 Nov 2010 06:15:20 +0000

(12PressRelease.com) Senior management at London based KTC Capital strongly support the efforts by delegations to avoid the escalating devaluation of several Asian currencies, an initiative of the G20 group of major economies.

Of the several currencies in question, the continued false valuation of the Yuan against the US dollar is the largest threat to global trade and growth. State economists claim that China's currency is artificially weak and gives Chinese exporters an unfair advantage as well as leading to Beijing building huge foreign reserves.

Several finance ministers of the G20 countries have committed to avoid competitive devaluations, but for now it is voluntary instead of policy. The progress is slow, as is China's commitment to move to a market-driven exchange rate. Chinese officials claim that Beijing has an "unwavering" commitment to reform its currency system, but that global economic stability is needed to accomplish it.

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KTC Capital Short Yen Fund Climbs with Japanese Rate Cut

KTCCapital — Thu, 28 Oct 2010 05:04:49 +0000

(12PressRelease.com) With continuing concerns over the pace of the economic recovery, the Bank of Japan lowered its key interest rate Tuesday effectively to 0%, driving up the KTC Capital Short Yen Fund.

While the rate reduction seemed insignificant (the cut was a rate range between 0% and 0.1% from 0.1%), it signaled Japanâ€˜s loss of confidence in its monetary easing policy to date. This signal enacted traders to put pressure on the yen almost immediately. The Bank of Japan said the move was due to the slowdown in the pace of Japan's recovery.

The central bank also announced it would five trillion yen in T-bills and other fixed income government backed assets to shore up the economy. Japanese equities rallied on the announcement, with the Nikkei closing up nearly 1.6% within the day.

In its statement of policy, the Bank of Japan cited serious concerns regarding heightened uncertainty in the United States and the increased valuation of the yen, whose strength has been damaging to exports this year. In September, the Japanese central bank said it would intervene in the currency market, purchasing dollars to try and control the yen's runaway rise.

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KTC Capital Reports Fund Boost with Record Commodity Prices

KTCCapital — Mon, 18 Oct 2010 23:25:21 +0000

(12PressRelease.com) Most of KTC Capitaâ€˜s commodity backed funds have reached record earnings as prices from gold to cotton skyrocket.

While this is excellent news for fund holders, KTC analysts remind investors that high commodity prices will eventually cool the equity market. This effect will be amplified by the currency devaluations seen worldwide as countries pump billions into their economies as quantitative stimulus.

Another risk to be aware of is the increased speculative risk as the expectations of a second round of quantitative easing grows. The US Fed's policies could end up causing a commodity bubble in an environment with record high prices currently of gold, tin, copper, cotton, rubber, soybeans, wheat and corn.

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Fuel Demand Optimism Driving KTC Capital Energy Investment Strategy

KTCCapital — Mon, 27 Sep 2010 05:50:45 +0000

(12PressRelease.com) Energy analysts at London based KTC Capital are now bullish on oil as it traded near a two-week high in New York as Asian equities appreciated on signs of improved corporate equipment purchases, boosting the streetâ€˜s expectations of greater fuel demand.

Durable goods orders in the U.S., not including volatiles, increased more than two percent, higher than markets anticipated. The Commerce Department recently confirmed the positive shift by reporting a more than four percent increase in capital equipment purchases last month after a slower than usual summer.

November contracts for light sweet crude were $76.78 a barrel on the Mercantile Exchange in after hours trading as it was bid up nearly a third of a cent by Asia traders. Oil prices, along with all commodities in general, were further boosted by a continued weakening of the dollar against the Euro.

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KTC Capital Reports Lower Japanese Share Prices

KTCCapital — Tue, 14 Sep 2010 04:39:37 +0000

(12PressRelease.com) KTC Capital analysts reported today a decline in Japanese share prices due to an anticipated poor showing in exports due to a higher Yen. Commodities in the region, however, lifted on the renewed hopes of a global recovery.

It is expected that the Japanese central bank will likely intervene to stem the Yenâ€˜s rise in support of the vital export market. Until then, Japanâ€˜s exporters, along with most equities in that market will feel continued pressure.

Other indicators of easing concerns are rising bank stocks as balance sheets and lending practices continue to be cleaned up. Asian banks are well positioned relative to their European counterparts as they already have high capital ratios. This makes the new regulatory landscape less onerous for them.

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KTC Capital Issues Warning Against US Banks

KTCCapital — Wed, 01 Sep 2010 06:34:12 +0000

(12PressRelease.com) Following an FDIC report extending the list of troubled banks to a 17 year high, KTC Capital released an investor warning on shares, mutual funds and derivatives holding U.S. bank stocks.

The latest quarterly survey of the American banking system led the Federal Deposit Insurance Corp. (FDIC) to classify 829 at risk of failing. This is a nearly twofold increase over the 412 banks on the watch list a year ago and is up from 772 in the first quarter of this year.

Banks that find themselves on the watch list are considered the most likely to fail, but few of the lenders on the list actually reach the level of failure. Typically just 13% of banks on the FDIC's problem list have been forced to close by regulators. So far in 2010, 116 banks have failed, with 43 closings during the last three months.

The FDIC also reports that while the number of banks at risk is up, the total assets from this year's failures will probably be lower since banks have been strengthening their balance sheets. They reported a second consecutive increase in the deposit insurance fund, which covers customer deposits when a bank fails. The fund, which had been waning for two years, grew by $5.6 billion. The fund still operates, however, with a deficit of $15.5 billion.

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KTC Capital Currency Traders Expect Stronger Dollar

KTCCapital — Mon, 16 Aug 2010 05:24:39 +0000

(12PressRelease.com) In spite of the possibility of a continued recession in the states, KTC Capital Currency Traders are finding that investors worldwide are turning once again to the US dollar as safe haven amidst the global economic troubles.

The last few months saw a continually dropping dollar as hopes for global recovery strengthened. The positive indicators are now being outweighed by the negatives, causing the trend to reverse. To put it another way, the US is having troubles, but other regions are worse, making the dollar the lesser of the evils.

Troubling data from Europe and China have investors scrambling for low risk holdings for their portfolio, which leads them back to the greenback. The European central bank has acknowledged that announcements of recovery were premature. Industrial output in China has been contracting for nearly half a year, putting the brakes on the once stellar rise of the largest third world country.

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KTC Capital Cites Slow Job Growth as Threat to US Recovery

KTCCapital — Mon, 09 Aug 2010 04:47:12 +0000

(12PressRelease.com) Economists at London based KTC Capital identified that in spite of significant job creation attempts by the U.S. Government, job growth is at a historically low level considering the number of working age individuals.

Last month alone, the American economy lost more than a quarter of a million jobs according to industry reports, adding to the existing fifteen million unemployed currently living in the States. Without a regular income, spending is curtailed and further impacts the already weakened economy.

KTC Client representatives have been advising a diversification strategy on two levels. First is to have holdings internationally to reduce exposure to the weakened U.S. economy. The second is to diversify types of investments to take advantage of hedge funds and other alternative investments that can offset existing exposure and maximize yields regardless of the market directions.

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KTC Capital Appoints Jorgenson to Fixed Income Post

KTCCapital — Wed, 16 Jun 2010 22:03:38 +0000

KTC Capital announced today the appointment of Phil Jorgenson to the position of Head of Fixed Income Securities, a new position within the company.

Phil Jorgenson joins KTC after 13 years as Senior Vice President of Mortgage Backed Securities at a major Wall Street firm. He is widely known for identifying the potential damage of junk mortgages far ahead of the street. This foresight protected his clients and his firm from securities backed by defaulted mortgages. He went on to generate the largest returns in the sector for his clients in 2008.

Mr. Jorgenson commented; Ã¢â‚¬Å“It is great to be back in my hometown of London. More importantly, it is great to be amongst such successful innovators. KTC Capital Management has the talent and will to truly maximize returns for our clients.

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KTC Capital Analysts View Gold Trending Higher In Spite of Correction Fears

KTCCapital — Thu, 10 Jun 2010 03:58:45 +0000

As investors continue to buy gold to hedge against the European Financial crisis, analysts at KTC Capital call for higher target prices in the third quarter of 2010.

Historically a safe hedge against market volatility, Gold continued its unlikely climb into the price stratosphere. The global financial community has been dealt blow after blow, last year North America, this year Greece, and possibly next year Spain if not sooner. It all translates into upward trending of gold and gold derivative prices.

The largest groups of gold buyers last quarter were firms and high net worth individuals in Europe who have watched their worth plummet with the Euro. They have bought the precious metal heavily and continue to do so. Prior to the Europe crisis when gold was trading between $1,000 and $1,100 per ounce, the street was warning that a correction was likely due to overvaluing. That risk is currently limited as countries around the world boost their gold reserves to hedge against their own inflation and asset bubble risks.

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KTC Capital Sees Rise in Safe Haven Stocks as Europe Troubles Continue

KTCCapital — Wed, 26 May 2010 07:27:05 +0000

New fears of the Euro credit crisis spreading to Spain have put upward pressure on safety investments according to KTC Capital.

The seizure of CajaSur Bank in Spain last week renewed concerns that the Euro troubles are far from over. Instead, analysts are revising their downside estimates. Speculators have again shifted away from riskier assets in favor of less volatile options. This resulted in oil falling about 2.8% over the last two days.

The change in oil prices was tempered by reports that Gasoline stockpiles have risen over the last week. Refineries continue to operate at approximately 88.5% capacity. As well the dollar gained one cent against the Euro in overnight trading. This trend is expected to continue as the world watches for further failures in Spain.

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KTC Capital Anticipates Approval of EU Hedge Fund Rules

KTCCapital — Tue, 18 May 2010 04:02:09 +0000

Amid the challenges of the Euro zone bailout, the European Parliament is expected to approve stricter rules for hedge funds which according to KTC Capital will limit choice for European Investors.

Spearheaded by the finance ministers of the continental member states, this legislation has been challenged by the larger hedge fund players, mostly located in the UK. As a long-time industry member located in London, KTC Capital has and will continue to lobby for concessions allowing European investors continued access to investment options around the globe.

Ã¢â‚¬Å“Without these concessions, European Investors will have less choice and thus less opportunity to find the best fit for their portfolio strategy.Ã¢â‚¬ Said William Greenberg, Senior Account Executive for KTC. Ã¢â‚¬Å“We specialize in scouring the world for the best risk/return ratios for our clients. Restricting choice on a wholesale level would clearly put the European investor at a disadvantage versus their North American and Asian counterparts.Ã¢â‚¬

Although the approval is expected Tuesday, it will be followed by many months of debate before the legal language will be finalized.

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KTC Capital Initiates Profit-Taking on Oil Hedge Fund

KTCCapital — Thu, 13 May 2010 02:16:30 +0000

With crude stockpiles being up for more than three and a half months, KTC Capitalâ€˜s highly successful oil hedge fund is at an all time high.

The hedge fund, which is designed to benefit from reductions in crude oil prices, started when the value of a barrel of crude was in the triple digits. Prices are currently in the mid-seventies. Ã¢â‚¬Å“We now see prices approaching bottom.Ã¢â‚¬ Said William Greenberg, Senior Account Executive for KTC. Ã¢â‚¬Å“It has been a good run, and our clients have made tremendous profits. We are now advising our clients to limit their exposure to the fund or to conversely go long in oil.

The US Energy Information Administration recently announced that crude oil stockpiles were 1.87 million barrels higher last week. Distillates were also up by 1.41 million barrels, while Gas stocks reduced by 2.75 million barrels against an anticipated gain.

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