CWC Financial Newsletter

CWC Financial

1505 Bridgeway, Suite 121
Sausalito, CA 94965
Local: 415-331-3744
Toll-free: 888 711-5454

U.S. Treasury Bonds

Maturity

Yield

Last
Week

Last
Month

5 Year	3.81	3.94	4.02
10 Year	4.11	4.25	4.36
30 Year	4.48	4.62	4.67

Treasury Market Summary:

Treasury Market Higher, Lowest Yields Since Mid-Feb: The market stalked higher throughout the session, supported by the continued uncertainty, stocks and commodities continue to unravel and feed the markets' nervous appetite. The week-ending activity helped boost the market while economic data was virtually ignored. The short-maturities led the markets move, with the 2-yrs pushing out an 8.3 basis point range while 10-yrs got out just under 7 bps as the curve slanted well steeper. The dollar's strong move helped weigh on over-bought commodity markets, which got a beat down fueled with the idea that the hedge funds are being forced out of positions for liquidity (as they continue to suffer from the hedgie-wedgie). Gold futures declined 2% from its weekly high of $429.30, copper futures down by 4% from its weekly high of $149.20, and crude prices fell over 8% on the week. The graph below details the movements in GM's 8.375% bond maturing in 2033 on a closing yield basis. The graph details the movements since GM lowered its guidance on March 16, with the other important even being the May 4 cut to junk by S&P. The second graph details the action in the 10-year since during the same time frame. Although the market seems to be uninterested in recent economic data, the high-tier data next week may provide some action. The highlights next week include PPI, CPI, industrial production, capacity utilization, Empire Manufacturing and Philly Fed. The markets will also have to contend with a significant amount of Fed-speakers including an appearance from the Chairman himself next Friday.

Economic Indicators for this week that could impact the mortgage or real estate markets include...

Building Permits	May 17
Housing Starts	May 17
Capacity Utilization	May 17
Industrial Production	May 17
CPI	May 18
Initial Claims	May 19
Leading Indicators	May 19

How to Save Money on Homeowner's Insurance

The price you pay for your homeowners insurance can vary by hundreds of dollars, depending on the size of your house and the insurance company you buy your policy from. Here are some ways to save money.

Shop around.

Prices vary from company to company, so it pays to shop around. Get at least three price quotes. You can call companies directly or access information on the Internet. You buy insurance to protect you financially and provide peace of mind. Get quotes from different types of insurance companies. But don't shop price alone. You want a company that answers your questions and handles claims fairly and efficiently. Ask friends and relatives for their recommendations. Select an agent or company representative that takes the time to answer your questions. Remember, you'll be dealing with this company if you have an accident or other emergency.

Raise your deductible.

A deductible is the amount of money you have to pay toward a loss before your insurance company starts to pay a claim. The higher your deductible, the more money you save on your premium. If you live in a disaster-prone area, your insurance policy may have a separate deductible for damage from major disasters.

Buy your home and auto policies from the same insurer.
Most companies that sell homeowners insurance also sell auto and umbrella liability insurance. (An umbrella liability policy will give you extra liability coverage.)

Make your home more disaster-resistant.
Find out from your insurance agent or company representative what you can do to make your home more resistant to windstorms and other natural disasters.

Ask about discounts for home security devices.
You can usually get discounts for a smoke detector, burglar alarm or dead-bolt locks. Some companies may cut your premiums if you install a sophisticated sprinkler system and a fire and burglar alarm that rings at the police, fire or other monitoring stations.

Seek out other discounts.

Many companies offer discounts, but they don't all offer the same discount or the same amount of discount in all states. Ask your agent or company representative about discounts available to you.

Stay with the same insurer.

If you've been insured with the same company for several years, you may receive a discount for being a long-term policyholder. To ensure you're getting a good deal, periodically compare this price with the prices of policies from other insurers.

Review policy limits and the value of your possessions annually.
You want your policy to cover any major purchases or additions to your home. But you don't want to spend money for coverage you don't need.

One should consult with a qualified insurance professional prior to implementing any insurance strategies.

If you are a tax, insurance, financial or real estate planning professional receiving this newsletter, please call our office and introduce yourself to us. We are always seeking to grow our referral network and expose more service professionals to our client base.