Junk-Fund Outflows Reach Highest Since August Amid Europe Unease By Lisa Abramowicz - 2012-05-25T14:40:46Z Investors pulled $3.05 billion from junk-bond funds globally in the week ended May 23, the most since August, as a worsening political crisis in Greece roiled credit markets. U.S. funds recorded the most outflows, with $1.97 billion pulled from funds that buy speculative-grade debt, according to Cambridge, Massachusetts-based EPFR Global. That included $856 million of redemptions from exchange-traded funds that hold the securities. High-yield bond funds reported $1.26 billion of redemptions on May 21, the biggest daily withdrawal this year, amid mounting concern that a Greek exit from Europe’s shared currency would disrupt the financial system. Speculative-grade debt, rated below Baa3 by Moody’s Investors Service and lower than BBB- by Standard ... Continue reading →

Dell Said to Weigh Buying Quest to Add Computer-Management Tools By Serena Saitto and Aaron Ricadela - 2012-05-25T04:01:01Z Enlarge image Dell Said to Weigh Buying Quest to Add Computer-Management Tools Quest Software makes tools that help companies manage their computer systems. Quest Software makes tools that help companies manage their computer systems. Photographer: Brent Lewin/Bloomberg May 22 (Bloomberg) -- Shaw Wu, an analyst at Sterne Agee & Leach Inc., Scott Bauer, senior market strategist at Trading Advantage, and Andrew Keene, president of KeeneOnTheMarket.com, talk about Dell Inc.'s first-quarter profit, outlook and their investment strategies for the shares. Dell forecast fiscal second-quarter revenue that missed analysts’ estimates. Wu, Bauer and Keene speak with Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." Gary Shilling, president ... Continue reading →

Enlarge image Lacrosse Party-Boy Image Worries Coaches Who See Slower Growth People walk by Duke Chapel on the campus of Duke University in Durham, North Carolina. People walk by Duke Chapel on the campus of Duke University in Durham, North Carolina. Photographer: Jim R. Bounds/Bloomberg Duke University men’s lacrosse coach John Danowski still talks to recruits’ parents about the stripper party that led to false rape allegations six years ago. University of Virginia coach Dom Starsia won’t grant interview requests about a former player who beat his girlfriend to death two years ago. Johns Hopkins coach Dave Pietramala says a survey that showed lacrosse players are the biggest users of illicit drugs among college athletes was “deeply concerning.” As the sport grows from pockets of ... Continue reading →

Buffett Says Free News Is Unsustainable, May Buy More Papers By Zachary Tracer - 2012-05-24T16:15:45Z Enlarge image Buffett Says Free News Is Unsustainable, May Buy More Pape Warren Buffett, Chairman and CEO of Berkshire Hathaway, in Omaha, Neb., on Nov. 14, 2011. Warren Buffett, Chairman and CEO of Berkshire Hathaway, in Omaha, Neb., on Nov. 14, 2011. Photographer: Nati Harnik/AP Photo Warren Buffett, whose Berkshire Hathaway Inc. (BRK/A) struck a deal this month to acquire 63 newspapers, said he may buy more publications as the industry rethinks whether to offer free content on the Internet. “This is an unsustainable model and certain of our papers are already making progress in moving to something that makes more sense,” Buffett wrote in a letter to editors and ... Continue reading →

Buffett Says Free News Is Unsustainable, May Buy More Papers By Zachary Tracer - 2012-05-24T16:15:45Z Enlarge image Buffett Says Free News Is Unsustainable, May Buy More Pape Warren Buffett, Chairman and CEO of Berkshire Hathaway, in Omaha, Neb., on Nov. 14, 2011. Warren Buffett, Chairman and CEO of Berkshire Hathaway, in Omaha, Neb., on Nov. 14, 2011. Photographer: Nati Harnik/AP Photo Warren Buffett, whose Berkshire Hathaway Inc. (BRK/A) struck a deal this month to acquire 63 newspapers, said he may buy more publications as the industry rethinks whether to offer free content on the Internet. “This is an unsustainable model and certain of our papers are already making progress in moving to something that makes more sense,” Buffett wrote in a letter to editors and ... Continue reading →

Enlarge image ETFs Lure Bearish Bets as JPMorgan Spoils Swaps The offices of JPMorgan Chase & Co. in the business and financial district of Canary Wharf in London. The offices of JPMorgan Chase & Co. in the business and financial district of Canary Wharf in London. Photographer: Simon Dawson/Bloomberg Distortions in credit-default swaps prices fueled by JPMorgan Chase & Co. trader Bruno Iksil are pushing investors to exchange-traded funds to make bearish bets on junk bonds. Traders sold short an unprecedented 6.86 million shares of BlackRock Inc.’s $15.1 billion iShares iBoxx High Yield Corporate Bond Fund at the end of April, about 4 percent of the biggest junk-bond ETF’s outstanding shares, according to data compiled by Bloomberg. That’s up more than three-fold from the low ... Continue reading →

Enlarge image Morgan Stanley’s Gorman Said to Join Facebook Call on IPO Price Facebook shares tumbled 16 percent through yesterday. Facebook shares tumbled 16 percent through yesterday. Photographer: Scott Eells/Bloomberg May 23 (Bloomberg) -- Robert Prongay, an attorney at Glancy Binkow & Goldberg, talks about the lawsuit the firm has filed with a California court over Facebook Inc.'s initial public offering. He speaks with Cory Johnson on Bloomberg Television's "Bloomberg West." Bloomberg's Emily Chang also speaks. (Source: Bloomberg) Ryan Cefalu, who lives with his wife and two kids in Baton Rouge, Louisiana, saw in Facebook Inc. (FB)’s much-anticipated initial public offering a chance to buffer his retirement fund. His expectations fizzled along with the stock within the first minutes of trading. “It’s disheartening to know ... Continue reading →

Slim Family Sees European Crisis as Good Time to Invest By Crayton Harrison - 2012-05-23T16:06:09Z Carlos Slim in New York. Photographer: Chris Goodney/Bloomberg Enlarge image Carlos Slim Domit Susana Gonzalez/Bloomberg Carlos Slim Domit, chairman of Telefonos de Mexico SAB de CV. Carlos Slim Domit, chairman of Telefonos de Mexico SAB de CV. Photographer: Susana Gonzalez/Bloomberg Europe’s debt crisis is providing a “good moment” for Carlos Slim to apply his strategy of investing in times of turmoil, said the billionaire’s son, America Movil SAB (AMXL) Co-Chairman Carlos Slim Domit. America Movil, controlled by the elder Slim, announced a $3.4 billion bid to increase its stake in former Dutch phone monopoly Royal KPN NV earlier this month. While the acquisition would be Slim’s first major European foray, ... Continue reading →

Morgan Stanley’s Gorman Said to Join Facebook Call on IPO Price By Serena Saitto and Douglas MacMillan - 2012-05-24T00:31:56Z Enlarge image Morgan Stanley CEO James Gorman James Gorman, chief executive officer of Morgan Stanley. James Gorman, chief executive officer of Morgan Stanley. Photographer: Scott Eells/Bloomberg May 23 (Bloomberg) -- Ken Polcari, a managing director at ICAP Plc's equities unit, talks about Facebook Inc.'s initial public offering and its listing with Nasdaq OMX Group Inc. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg) Enlarge image Morgan Stanley’s Gorman Said to Join Facebook Call on IPO Price Facebook shares tumbled 16 percent through yesterday. Facebook shares tumbled 16 percent through yesterday. Photographer: Scott Eells/Bloomberg As Facebook Inc. (FB) and Morgan Stanley (MS) executives ... Continue reading →

Bank of America Corp. (BAC), the second- biggest U.S. lender, will buy back $330 million of home loans from Freddie Mac, the mortgage company seized by the government, after flaws were found in how they were created. Payments on the “vast majority” of the loans are current, according to Dan Frahm, a spokesman for the Charlotte, North Carolina-based bank. McLean, Virginia-based Freddie Mac disclosed the buybacks in a statement yesterday, without directly citing the lender. Bank of America agreed to the refunds “because the valuation method used at origination did not meet the investor’s technical requirements,” Frahm said in an e-mail, adding that the flaws have been fixed. Chief Executive Officer Brian T. Moynihan is seeking to limit further losses at the bank after booking ... Continue reading →