WSJ: Barton Biggs: ‘Charming Man of Deep Intellect’

By Simon Constable

Sad news. Famed hedge fund investor Barton Biggs died over the weekend after a distinguished financial career.

It was particularly meaningful to me as I’d had the opportunity to meet or speak with him a number of times over the years both here at WSJ and at my previous employer, TheStreet TV. Most recently I spoke with him about his father and last year he invited me to his home in Greenwich Connecticut where we taped The Big Interview. There were other occasions also.

While some people found him to be somewhat crabby, I found a charming man of deep intellect. There are many people who throw back sound bites during interviews. Not so with Biggs. He pondered each question, thought it through and called on his many years of experience.

He was also modest. Once he proclaimed that he wasn’t very good at timing his investments. That’s something small investors might want to consider. If even a veteran of markets and investing found it tricky to jump in or out of a stock, what chance do the rest of us stand?

He will be missed. See original post here.

WSJ: What Are Covered Bonds

By SIMON CONSTABLE

Is there a path to higher yield and lower risk in the bond market? Apparently there is, if you believe the promises of so-called covered bonds.

These are a type of mortgage security, issued mainly by financial institutions in Europe, that offers fixed-income investors a double layer of protection against default.

Covered bonds differ from typical mortgage-backed securities in the U.S. in that the issuing bank retains ownership of the underlying mortgages. "The fact that it's on [the] balance sheet means that the issuer has skin in the game," says Kristion Mierau, a portfolio manager and covered-bond expert at Pacific Investment Management Co., or Pimco. See original post here.

Barrons: Why Commodities Are Set to Tank

By SIMON CONSTABLE

Investors in commodities need to watch out.

Fresh data show the U.S. economy is weakening. The economy added a paltry 80,000 jobs in June, not enough to keep up with population growth. Earlier last week, we learned the manufacturing sector contracted in June for the first time since July 2009. Other indicators have been equally uninspiring. 

Why does this matter to commodities? The raw-materials sector tends to get hit harder than the rest of the economy in a recession. See original post here.