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Uncle Pipeline’s Corner

Uncle Pipeline has been a Financial Pipeline contributor since 1996. An expert in investing in bonds to managing your personal finances, he’s the kindly uncle who is always there for you with great financial advice. Always opinionated but never boring, Uncle Pipeline’s insightful anecdotes and simple explanations will help you to make better decisions about your money. He’s like a stiff pull of hard liquor – a little hard to swallow, but remarkably warming and helpful in the end.

You can trust him to curate the financial news you need to know about.

Hawkish Norges Bank raises rates for a third time in 12 months*

Publication: Financial Times
Norway’s central bank indicated more rate rises to come and at a “slightly faster” pace than earlier projected after it increased borrowing costs for a third time within 12 months, moving counter to fellow policy setters of other major economies, as the Scandinavian nation enjoys robust growth. [Read more]
Why you have to read this
Norway is bucking the trend of the other petrified central banks with strong growth and increasing overnight rates. These increases put them in a lonely place when compared to expectations in the other “developed” economies.

The Fed may give Trump his rate cut. The question is when.

Publication: New York Times
President Trump might get what he wants from the Federal Reserve, which kept interest rates steady on Wednesday but indicated that it could soon cut them as economic risks mounted and inflation remained stuck below target. [Read more]
Why you have to read this
Growing political pressure on the Fed is being supported by a heavy push from the treasury market to lower rates to deal with, well, nothing. While some economic readings are softer, the employment market continues to be strong while inflation remains near target.

Private-equity firms are raising bigger and bigger funds. They often don’t deliver.*

Publication: Wall Street Journal
The private-equity giant has capped its latest fund at around $25 billion amid strong demand, according to people familiar with the matter. Collecting that would take the fund past the $24.6 billion record set by Apollo Global Management LLC in 2017. Others also are raising big funds: Advent International said earlier this month it had raised a $17.5 billion fund, and software-focused Vista Equity Partners is raising a $16 billion vehicle. [Read more]
Why you have to read this
Private equity poses the risk of higher leverage and no liquidity, with the same returns as public equities. As the demand for private equity grows, we can’t help but think “there is an asset class sucker born every day!”

*While we’re doing our best to deliver the latest and greatest industry news to you, sometimes our delivery can only take it so far. Please note this particular article is behind a paywall and will require a subscription for you to read it.