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U.S. Treasuries will benefit from Euro Zone downgrade: adviser

Friday, January 13, 2012 - 03:35

Jan. 13 - Tom Bradley, President of TD Ameritrade Institutional, says the impact of S&P's possible downgrade of several Euro Zone countries will drive flight to safety in U.S. Treasuries.

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Which could spread and -- About the crisis in Europe. Joining us now is Tom Bradley president at TD Ameritrade institutional good to -- here Tom thanks for just how concerned are the advisors about the latest headlines Europe. Well that advisors are concerned about Europe in general and certainly latest headlines and on to their concerns and the concern of their clients. But the good news is that the advisors have opportunities and have ways to deal with the uncertainty in Europe -- allow the other uncertainties that we're seeing globally today. If the S&P downgrade does happen what financial instruments would be most affected what are they waiting for when you see these sort of headlines in terms of where to move money. So when it whenever you see downgrades and other areas I think you see. -- -- -- a flight of money to what they -- to be the safest investment and that is typically US treasuries so. I think that this will continue to drive capital Ford's. Safety and that's the United States. Some other instruments they can get -- obviously the Euro but are there other. Items within the financial market that perhaps clients might not think about that puts them more vulnerable or -- as well I think that. Essentially what Clancy to do today and what what's happening today which is very interesting right. And it's it's been like this for awhile how's that everything is correlated. So what whenever you have a problem today it's everything seems to go down together and when you have good news everything seems to love -- That's been a challenge for investment managers and investment advisors. And what you're seeing is you're seeing managers utilized different types of strategies and techniques to trying -- that. Specifically around but we're seeing it -- America are wise it is an increase usage in. Options. -- in hedge a portfolio portfolio generate more income. Or trying to help them be. There benchmarks and options across the board and every asset class for the most part yes it's it's I mean it depends on what they're trying to accomplish with a particular class for fall. And you can flat out just buy insurance by -- it's expensive to do that today the more volatile markets are. The more expensive options are. What we're seeing more often. The simple strategies like -- chlorine. And the writing of credit spreads. And generating come. There's been a lot of concern about money market funds exposure to Europe what are you hearing from your advisors about that again you might -- -- -- Place and perhaps. Turns out -- I think that there are dramatic changes it have occurred and we'll continue occurrence in the money market space. Actually we were waiting came TV Ameritrade and most of the cash held. TD Ameritrade was moved out of our money market funds in -- aren't insured deposit to bank accounts there. Held with -- 45% shareholder. TD bank. So I think it money market industry will become much more challenged. Going forward as they've had the poll that maturities and in the portfolios. And I think it's a good chance that they'll be required to put capital. Against. Their portfolios. Future Tom Bradley president TD Ameritrade institutional thanks for your time thanks. I'm Rhonda -- this is.

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U.S. Treasuries will benefit from Euro Zone downgrade: adviser

Friday, January 13, 2012 - 03:35