Category: International Bond Market
The analysis published under this category are as follows.
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.
Thursday, August 29, 2013
Higher Interest Rates - Bond Vigilantes Hold Upper Hand Over Central Banks / Interest-Rates / International Bond Market
By: Gary_Dorsch
Whenever former Fed chief Alan Greenspan was praised for delivering a clear message on US- monetary policy, he used to reply, "I guess I should warn you. If I turn out to be particularly clear, you've probably misunderstood what I've said." On June 7th, Greenspan set off the alarm bells on Wall Street by telling viewers of CNBC that the time had arrived for the Fed to begin tapering its $85-billion a month bond buying binge, even if the US-economy isn't ready for it. "The sooner we come to grips with this excessive level of assets on the balance sheet of the Federal Reserve, - that everybody agrees is excessive, - the better," he said in a "Squawk Box" interview. "There is a general presumption that we can wait indefinitely and make judgments on when we're going to move. I'm not sure the market will allow us to do that."
Tuesday, August 13, 2013
How to Play the Coming Bond Market Crash / Interest-Rates / International Bond Market
By: Investment_U
Alexander Green writes: You know it’s coming. Every experienced investor who is paying attention knows it’s coming. I’m talking about the upending of bonds that will take place in the months and years ahead. However, there is a smart, low-risk way to play it… and earn a decent return.
Let’s start with the basics. Picture a seesaw with interest rates on one side and bond prices on the other. When interest rates go down, investment-grade corporates and Treasuries go up. When interest rates go up, these same bonds go down.
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Thursday, July 04, 2013
How to Make Money in Bull or Bear Bond Markets / Interest-Rates / International Bond Market
By: Investment_U
Steve McDonald writes: Though painful, the recent sell-off in bonds has had three positive effects on the bond market:
First, it reinforced the fact that the bond market’s movements are mechanical and predictable.
Second, it drove up rates on all bonds to more reasonable levels.
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Saturday, June 29, 2013
The Critical Trend Towards Higher Interest Rates Has Begun / Interest-Rates / International Bond Market
By: DeepCaster_LLC
“’The Fed can continue to spew out QE until the bond market says it can’t.’ - Richard Russell. PS: The bond market has said that ‘it can’t.’”
Richard Russell, dowtheoryletters, 06/21/2013
“The real menace of our Republic is the invisible government which like a giant octopus sprawls its slimy legs over our cities, states and nation. At the head is a small group of banking houses…This little coterie…runs our government for their own selfish ends. It operates under cover of a self-created screen…seizes…our executive officers… legislative bodies…schools…courts…newspapers and every agency created for the public protection.”
John F. Hylan, Mayor of New York, 1918-1925
via lemetrepolecafe.com
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Thursday, June 27, 2013
BIS Warning of Bond Market Crisis on the Way! / Interest-Rates / International Bond Market
By: Julian_DW_Phillips
From 2007 the crises have grown - Central Banks can't fix it alone!
Whether it is Bill Gross of Pimco, Marc Faber, ourselves or so very many competent analysts in the financial world, to a man, are warning of the destructive power of rising interest rates. Now in addition to all of us, we have the central banker of central bankers, the Bank of International Settlements, giving a serious warning to developed world governments that it is perhaps too late to rely on growth to rescue the global economy from deflation.
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Friday, May 10, 2013
Global Interest Rates From An Austrian Economics Viewpoint / Interest-Rates / International Bond Market
By: GoldSilverWorlds
Interest rates all over the world are at historic lows or even negative in some instances.The recent interest rate cut by the European Central Bank brought the interest in Europe to its lowest level ever. The US is going through its fifth consecutive year of almost zero interest rates, which is the longest period ever in times of “peace.” People should question what the longer-term implications are for our economies and for society as a whole. An answer to this question is given by Claudio Grass who wrote about the matter in his latest outlook report (Global Gold Outlook Report)
Thursday, April 11, 2013
Short Japan Bonds to Profit From the End of the Monetary System / Interest-Rates / International Bond Market
By: Jeff_Berwick
While most people will lose their shirts as The End Of The Monetary System As We Know It (TEOTMSAWKI) continues down its predictable path there are some who will make fortunes.
At The Dollar Vigilante we’ve already been ahead of the curve on many profitable ventures related to TEOTMSAWKI. TDV Senior Editor, Ed Bugos, has been a proponent of owning gold since 2000 when it was at $200 and upon TDV’s founding in 2010 we immediately added gold as the largest part of our portfolio while it was trading near $1,200 and quickly saw that rise to nearly $2,000.
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Tuesday, April 09, 2013
Global Sovereign Debt Skyrockets, Bubble to Burst / Interest-Rates / International Bond Market
By: DailyGainsLetter
Mitchell Clark writes: “Risk” is a four-letter word.
It’s the kind of thing you wish you spent a lot more time thinking about before a shock actually happens.
Right now, the Federal Reserve is re-inflating assets while sovereign debt skyrockets. It’s been doing so for a number of years now, and the stock market is moving.
Wednesday, February 13, 2013
Dim Sum Bonds: A New Way to Play the Yuan and Chinese Debt / Interest-Rates / International Bond Market
By: Investment_U
Jason Jenkins writes: For about the last four months, investors have been throwing money into funds that focus on a relatively new instrument called “dim-sum” bonds. In fact, EPFR Global reported there were $81 million of inflows in the week ended January 16.
The big question: Is there a solid basis behind this movement, or are people out there just chasing yields?
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Monday, August 13, 2012
Time for the "Widowmaker Trade" to Finally Pay Off? / Interest-Rates / International Bond Market
By: DailyWealth
I GUARANTEE someone will get rich on the "Widowmaker Trade" someday...
The question is... is today the day?
Let me explain this guaranteed trade...