Category: International Bond Market
The analysis published under this category are as follows.
Thursday, July 02, 2015
The Fuse of the Global Debt Bomb Has Been Lit / Interest-Rates / International Bond Market
By: Graham_Summers
Greece defaulted on a debt payment to the IMF last night at midnight.
Regardless of anything else, we have now seen a developed country “go over the cliff” in terms of negotiating debt payments. This will have global implications for other indebted countries in terms of negotiating tactics going forward.
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Thursday, June 25, 2015
When a Bond Is Not a Bond / Interest-Rates / International Bond Market
By: John_Mauldin
By Jared Dillian
I don’t know anything about Greece. I actually make it a point not to.
What I’ve found over the course of my career is that the closer people get to an issue, the worse their predictive power is. The forest-for-the-trees phenomenon. Like all the economists who do nothing but watch the Fed, every piece of data, every speech. Their track record in predicting interest rate moves is worse than everyone else’s!
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Thursday, June 11, 2015
Is The Age Of Negative Interest Rates Ending Already? / Interest-Rates / International Bond Market
By: John_Rubino
History teaches that long trends end only when everyone is finally convinced that they’ll keep going.
Maybe no trend in modern times has been as convincing as interest rates. The yield on long-term Treasury bonds, for instance, has been falling for as long as most people have been alive:
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Wednesday, June 10, 2015
How to Play the Bond Market Crash / Interest-Rates / International Bond Market
By: ...
MoneyMorning.com Shah Gilani writes: A week ago, in a strategy piece detailing ways to handle the looming bond-market crash, I recommended shorting the iShares PLC Markit iBoxx Euro High Yield Bond ETF (LON: IHYG).
Several readers wrote in to say that “not every brokerage lets you buy this.” Some do, in fact: In this day and age, many brokerages let you buy any shares, anywhere. But for those of you whose brokerages won’t let you, I wanted to give you an alternative.
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Monday, June 08, 2015
Get Ready for the Greatest Trade in History / Interest-Rates / International Bond Market
By: ...
MoneyMorning.com William Patalon writes: In Wall Street lore, it's known as the "Greatest Trade Ever."
It's also known as "The Big Short."
In 2006, John Paulson was a relatively unknown hedge-fund manager – just another face in the crowd.
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Thursday, June 04, 2015
Global Bond Market Rout - Draghi Says 'Get Used to Higher Volatility' / Interest-Rates / International Bond Market
By: Mike_Shedlock
Bond Rout in Pictures
German 10-year bonds hit a yield low of .048% on April 16. Since then it's been a pretty steep uphill climb in yield (down in price).
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Monday, June 01, 2015
Bikers, Bonds, and Black Swans / Interest-Rates / International Bond Market
By: DeviantInvestor
A “black swan” event occurred at a gathering of outlaw bikers on Sunday, May 17 in Waco, Texas. According to news stories a fight broke out between several motorcycle gangs at the Twin Peaks restaurant. At least nine bikers are dead, another 17 were injured, and perhaps as many as 170 were detained or jailed.
Monday, May 18, 2015
Global Bond Bubble Will Explode Violently / Interest-Rates / International Bond Market
By: Michael_Pento
Central banks are incapable of saving economies or creating growth. The only thing a central bank can do is create inflation. These market manipulators set forth on a journey seven years ago to save the world by engaging in massive monetary manipulation, euphemistically called Quantitative Easing (QE), and a Zero interest rate policy known as (ZIRP).
As I could have told them before they started, all this easy money will fail to create viable growth. The economy, held back by massive debt levels, initially clocked in at 0.2% for the first quarter. This number is set to be revised down to negative territory due to a huge increase in the trade deficit during March. And the second half isn’t setting up to be much better either.
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Thursday, May 07, 2015
Global Bond Markets in Perspective / Interest-Rates / International Bond Market
By: Gary_Tanashian
The world is getting hyped up about bond yields lately with bonds of all stripes declining, as if we are in the midst of a debt Armageddon (we are and have been in the midst of a decades-long and still intact 'debt for growth' Ponzi operation). Here is some perspective...
Saturday, May 02, 2015
Everyone Piles Into Junk Bonds - The End Is Near? / Interest-Rates / International Bond Market
By: John_Rubino
Six years into a recovery, stocks at record levels, high-end real estate in the stratosphere and debt levels soaring in virtually every public and private sector. Time to scale back and protect those gains, right? Wrong, apparently, for a depressingly obvious reason: Huge sections of the investing public can’t afford to move into cash or even into conservative paper like short-term Treasuries.
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Saturday, April 25, 2015
Negative Interest Rates Financial Black Hole / Interest-Rates / International Bond Market
By: GoldSilverWorlds
It feels like not a single soul is worried about the increasing amount of negative interest rates. Ignorance or indifference? This could become a very expensive ordeal.
A black swan event is a metaphor for an enormous problem that develops underneath the surface and then suddenly puts the whole financial system at risk. The financial crisis of 2008 was a black swan event, for example, that slowly developed in the US real estate market where excess had ruled in the years before.
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Tuesday, March 17, 2015
Government Bonds - The Most Crowded Trades on Wall Street / Interest-Rates / International Bond Market
By: EconMatters
The most crowded trade on Wall Street, the globe, or a beach in Brazil is the Bond Yield Chasing/Price Appreciation trade. This sector or asset class is an absolute bubble, the magnitude of which has never been seen in a mainstream asset class, and one that is deemed conservative and safe by investors which makes the tail risk for these assets off the charts. We literally are looking at an 8 sigma event down the road in this asset class.
Friday, November 21, 2014
30 Year Bond Bull Market - I Had My Cake, Until I Ate It / Interest-Rates / International Bond Market
By: John_Mauldin
After 30 years of declining interest rates, bond investors are beginning to worry that rates will go higher—especially after the events of May 2013.
Back then, 10-year yields went from 2% to 3% on a frozen rope. Things got very dicey in fixed income. Some holders of corporate bonds (like the new Apple bond) were suddenly down 10% just on interest rates alone.
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Wednesday, November 19, 2014
What Blows Up First? Part 5: Shale Oil Junk Bonds / Interest-Rates / International Bond Market
By: John_Rubino
One of the surest signs that a bubble is about to burst is junk bonds behaving like respectable paper. That is, their yields drop to mid-single digits, they start appearing with liberal loan covenants that display a high degree of trust in the issuer, and they start reporting really low default rates that lead the gullible to view them as “safe”. So everyone from pension funds to retirees start loading up in the expectation of banking an extra few points of yield with minimal risk.
Monday, August 25, 2014
Why Global Bond Yields Are Tumbling / Interest-Rates / International Bond Market
By: Michael_Pento
Market pundits appear to be mostly dumbfounded as global bond yields continue to set record lows. For some examples; the 10 year German bund fell below 1%., the Italian 10 year note has dropped below 2.60%, Spanish bonds fell to 2.40 % and Japan is offering a shocking one half of one percent to borrow funds for ten years. Even Greece, whose bonds were on ECB life support just two years ago, has a 10 year note yielding below 6%. Worldwide bond yields are at all-time lows, leaving market commentators scrambling to come up with a creative array of explanations for this phenomenon. Tensions in Ukraine and escalating violence in the Middle East are some favorites. But at least in Europe and Japan, most are willing to attribute record-low bond yields to the real cause…that is no growth and deflation.
Friday, August 22, 2014
Negative Real Interest Rates Show Yield Trade in Bubble Territory / Interest-Rates / International Bond Market
By: EconMatters
No Financial Crisis
This is one of my main criticisms of central bank policy, especially the last three years when there was no financial crisis but all the central banks continued to keep interest rates at recession era levels which has incentivized inappropriate uses of capital allocation, and this money being used for yield arbitrage plays would be more beneficial to sustainable growth projects and overall growth in the economy if interest rates were normalized.
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Monday, July 21, 2014
The Municipal Bond World, / Interest-Rates / International Bond Market
By: Frank_Holmes
According to John Derrick
As we move into the second half of 2014, the Federal Reserve has continued to reduce its stimulus measures intended to boost the U.S. economy. Just last week we heard rumors from Fed officials that if the job market improves faster than expected, key interest rates may be increased sooner than expected.
Tuesday, July 08, 2014
This Could End Up as the Biggest Ponzi Finance Scheme in History / Interest-Rates / International Bond Market
By: Money_Morning
Michael E. Lewitt writes: The great economist Hyman Minsky coined the term "Ponzi finance" to describe the situation when borrowers use more borrowed money to pay their debts.
The U.S. government engages in Ponzi finance every day since it is incapable of repaying the more than $17 trillion it has borrowed.
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Tuesday, November 19, 2013
A Requiem for the Bond Market / Interest-Rates / International Bond Market
By: Michael_Pento
The central banks of Japan and the U.S. are killing the private market for government debt. The massive and unprecedented bon-buying programs for Japanese Government Bonds (JGBs) and Treasuries have driven yields so low that investors are now simply stepping aside from involvement in that market entirely.
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Wednesday, September 11, 2013
No Bond Market Vigilantes Or Vultures Need Apply / Interest-Rates / International Bond Market
By: Raul_I_Meijer
With media and technology becoming faster and more pervasive at a rapid clip, it shouldn't perhaps be a big surprise to see the ease with which war-mongering news flashes come to dominate the story of the day. But maybe this should be received with an increasing dose of skepticism, maybe we should today, even more than before, try to figure out who benefits from one story dominating all major headlines, as if all other things going on are only of secondary importance, especially since new technologies allow those headlines to become so much more pervasive, coming in at an ever faster rhythm, that they are today's true bombardments.