Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (13866)	5/13/2004 5:55:51 PM
From: ild	Read Replies (1) \| Respond to of 110194

From Fleck's reader: Here are some points of reference on pricing out there. I head a division of one of the largest consultancies in the world. In my job, I touch not only our industry but a variety of others. Here are several data points from the past week: - We have been able to raise price points ~10% due to a rapid increase in demand in Q1; we and our competitors are refusing significant work if they won't pay the rates we're asking - Off-shore competitor rates are heading up for two reasons: general increase in the rates of service professionals in India/China, and the realization that they are less productive and quality variance is higher (need to pay for the best) - Retail clients are having tremendous difficulty with the cost of store fixtures skyrocketing, and the dollar store types are concerned that their format may have to break the $1 barrier due to the accelerating price of goods (even those bought on distressed terms) - Procurement program contracts are having to be rewritten or turned down completely if they commit to savings vs. last year's spend; our new policy is that we commit to savings vs. projected future spend using sophisticated (non-CPI) indices - The automotive parts companies are looking at a major price hike in the next 60 days to cover the fact that steel is rising astronomically, even post the Chinese announcement (they had not passed through increase previously) - The mix of the offerings our clients ask of us is rapidly changing from those that are cost-oriented to those that are about improving availability, capacity, service-levels, and pricing... all higher margin offers in our business To top it off, one of my relatives has a small manufacturing business out West, and he has a different, but related problem: it's not the price of steel, he can't even GET delivery of sufficient quantities of steel regardless of price. The suppliers are hoarding to keep their biggest customers satisfied. Not sure I believe the CPI...

To: russwinter who wrote (13866)	5/13/2004 9:45:56 PM
From: ild	Read Replies (1) \| Respond to of 110194

Flows: May 12 Equity funds report net cash outflows of -$2.4 billion in the week ended May 12 with 88% coming from Domestic funds; International Equity funds report redemptions -($278 Mil) from all developed and emerging regions; Emerging Markets Equity funds report outflows totaling -$464 million, the largest outflow on record; Taxable Bond funds report net cash outflows totaling -$2.5 billion, the largest outflow since 8/6/03; High Yield Corporate Bond funds report outflows totaling -$2.15 billion, the largest outflows from the sector since 8/6/03 and the second largest on record. The number of funds reporting inflows to the sector (70) is the smallest number reporting inflows since 12/21/94; Government Bond funds investing in Mortgage-backed securities report outflows totaling -$738 million while Government Bond funds investing in Treasuries, primarily TIPS, report inflows totaling $224 million; Money Market funds report inflows totaling $16.7 billion; Municipal Bond funds report net cash outflows of -$1.3 billion, the largest outflow since 11/9/94. amgdata.com