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Keyword: bonds

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  • Saudi Arabia Approves Economic Reform Program

    04/25/2016 6:40:41 AM PDT · by Tolerance Sucks Rocks · 15 replies
    The Wall Street Journal ^ | April 25, 2016 | Margherita Stancati and Dahlia Kholaif
    RIYADH—Saudi Arabia, crimped by low crude prices, approved Monday a long-term blueprint for the kingdom’s economic transformation aimed at reducing its dependence on oil. The multiyear plan, dubbed “Saudi Vision 2030,” was approved by the cabinet, according to Saudi Arabia’s monarch, King Salman. The Saudi cabinet, in a statement carried by the official Saudi Press Agency, said the government’s economic council would be in charge of overseeing the vision’s implementation. Saudi officials later Monday were to present a broad overview of the country’s most extensive economic shake-up in decades. The steep drop in oil prices has given new urgency to...
  • Chicago Debt Downgraded to Near ‘Junk Bonds’

    03/30/2016 5:42:15 AM PDT · by detective · 5 replies
    Breitbart ^ | March 29, 2016
    Fitch Ratings downgraded the City of Chicago’s credit rating to just one step above “junk bonds” on March 28.
  • Bond Guru Says Trump Nomination Could Bring Down World Economy

    03/22/2016 12:51:57 PM PDT · by Innovative · 71 replies
    Fortune ^ | March 21, 2016 | Reuters
    Jeffrey Gundlach, the widely followed investor who runs DoubleLine Capital, foresees a “global growth scare” between now and the end of the summer, triggered by a presidential nomination of Donald Trump. “That is where I see the vulnerabilities,” Gundlach said in a telephone interview on Monday. Trump’s protectionist policies could mean negative global growth, Gundlach warned. “As he gets the nomination, the markets and investors are going to worry about it more. You will see a downgrading of global growth based on geopolitical risks. You must factor this into your risk-management.”
  • Foreign governments dump U.S. debt at record rate

    03/16/2016 4:26:38 PM PDT · by SkyPilot · 18 replies
    CNN ^ | 16 March 16 | Matt Egan
    In a bid to raise cash, foreign central banks and government institutions sold $57.2 billion of U.S. Treasury debt and other notes in January, according to figures released on Tuesday. That is up from $48 billion in December and the highest monthly tally on record going back to 1978. It's part of a broader trend that gathered steam last year when central banks sold a record $225 billion of U.S. debt. "Foreigners have no longer been our BFF when it comes to buying U.S. Treasuries," Peter Boockvar, chief market analyst at The Lindsey Group, wrote in a client note. So...
  • China to sack SIX MILLION state workers from its hugely inefficient state sector

    03/02/2016 4:07:30 PM PST · by Olog-hai · 12 replies
    Daily Mail (UK) ^ | 03:07 EST, 2 March 2016 | Tom Wyke for Mail Online and Reuters
    China aims to lay off 5 to 6 million state workers over the next two to three years as part of efforts to curb industrial overcapacity and pollution. The move is being seen as Beijing's boldest retrenchment program in almost two decades. China's leadership, obsessed with maintaining stability and making sure redundancies do not lead to unrest, will spend nearly 150 billion yuan ($23 billion) to cover layoffs in just the coal and steel sectors in the next 2-3 years. [...] The hugely inefficient state sector employed around 37 million people in 2013, and accounts for about 40 percent of...
  • After Original Bondholders Stiffed, GM Issues New Debt

    02/25/2016 1:08:22 PM PST · by jazusamo · 30 replies
    NLPC ^ | February 25, 2016 | Mark Modica
    "Fool me once, shame on you; fool me twice shame on me." That is a clichĂŠ that investors should keep in mind if they are considering buying into General Motors' latest debt offering. In fact, holders of GM common stock should also assess the growing similarity that New GM has with the bankrupted Old GM. GM announced last week that it will be offering an estimated $2 billion of unsecured debt to help prop up underfunded pensions with additional proceeds used for general business purposes. The move follows a contradictory continuing dialogue that proclaims the company is so cash...
  • This is How Financial Chaos Begins

    02/14/2016 8:13:53 AM PST · by Lorianne · 16 replies
    Wolf Street ^ | 12 February 2016 | Wolf Richter
    It’s not contained. There are over $1.8 trillion of US junk bonds outstanding. It’s the lifeblood of over-indebted corporate America. When yields began to soar over a year ago, and liquidity began to dry up at the bottom of the scale, it was “contained.” Yet contagion has spread from energy, metals, and mining to other industries and up the scale. According to UBS, about $1 trillion of these junk bonds are now “stressed” or “distressed.” And the entire corporate bond market, which is far larger than the stock market, is getting antsy. The average yield of CCC or lower-rated junk...
  • The Growing Public Pension and Muni Bond Bubble

    02/04/2016 6:11:39 AM PST · by artichokegrower · 18 replies
    American Thinker ^ | February 4, 2016 | Michael Bargo, Jr.
    A credit bubble is created when the amount of money borrowed exceeds the capacity of the borrower to pay it back. This concept is easy to understand, but the financial foundation of borrowing has been manipulated to an historic extreme by government. Not just through the national debt but through the agreements to create debt through public sector union contracts and municipal bond issuance.
  • In shocking move, Japan adopts negative interest rate as deflation fight falters

    01/29/2016 3:27:36 AM PST · by TigerLikesRooster · 52 replies
    Japan Times ^ | Jan 29, 2016
    In shocking move, Japan adopts negative interest rate as deflation fight falters The Bank of Japan unexpectedly adopted a negative interest rate policy Friday, stunning investors with a move aimed at shielding the country's sluggish economy from volatile markets and slowing global growth. The BOJ said it would use a three-tiered system to charge for excess reserves parked with the institution, an aggressive policy pioneered by the European Central Bank that penalizes banks for holding cash and encourages them to loan it out. "The BOJ will cut the interest rate further into negative territory if judged as necessary," the central...
  • Behold Unintended Consequences: Japan Cancels 10Y Auction For First Time Ever Due To Sub-Zero Rates

    02/02/2016 11:55:43 AM PST · by Former Proud Canadian · 31 replies
    Zerohedge ^ | February 2, 2016 | Tyler Durden
    Dear Bank of Japan, how do you spell unintended consequences: •PLANNED MARCH SALE OF 10-YEAR JAPANESE GOVERNMENT BONDS THROUGH BANKS TO BE CANCELED AMID EXPECTED BELOW-ZERO YIELDS - NIKKEI •JAPAN'S MINISTRY OF FINANCE IS EXPECTED TO ANNOUNCE WEDNESDAY THE FIRST-EVER DECISION TO CALL OFF SALES OF 10-YEAR JGBS- NIKKEI Here is the full Nikkei report on this absolute stunner of a development: The planned March sale of 10-year Japanese government bonds through banks to retail investors, municipalities and others will be canceled amid expected below-zero yields following the Bank of Japan's recent move to adopt negative interest rates. The Ministry...
  • Bill Gross on CNBC says investors should stay with U.S. Treasuries

    01/25/2016 10:26:30 AM PST · by Citizen Zed · 9 replies
    Reuters ^ | 1-19-2016
    Gross also recommended investors should consider Build America Bonds, which are taxable municipal bonds that carry special tax credits and federal subsidies for either the bond issuer or the bondholder. "There are a lot of closed-end funds that are selling 10-15 percent discounts to net asset values. That means you are buying something at 80-95 cents on the dollar," Gross said. "Some of these closed-end funds deal in, yes, relatively high-quality municipal bonds." Last year, the Janus Global Unconstrained Bond Fund outperformed a comparable fund at Gross's former employer, Pimco.
  • 2016 A BIRTHING of Unity and Oneness [Charismatic Caucus]

    01/04/2016 9:21:05 AM PST · by Jedediah · 1 replies
    bible , The Joshua Chronicles ^ | 1-4-16 | Holy Spirit, bible
    I am birthing a new thing in you my children that you may bear forth great multitudes of fruit for my glory for I am expanding my tent pegs so that my Tapestry covers the earth and so now as my spirit rises up in you "Truly" you shall bud, blossom and bear fruit ripe for the picking and I shall use you as Aaron's Rod for I carry you in my hand for you know me as your divine authority and God. I am your inheritance for you are my priest and I am your pleasure and delight and...
  • Federal Reserve will pay banks $12 billion in 2016

    12/24/2015 10:30:21 AM PST · by Toddsterpatriot · 15 replies
    Yahoo! Finance ^ | Dec 24, 2015 | Jared Blikre
    In 2016, the Federal Reserve will pay at least $12.2 billion to U.S. and foreign banks to keep the money created via its quantitative easing programs out of the economy. If the Fed raises rates as expected next year, the amount nearly doubles to $23.1 billion. From 2008 to 2015, the Fed purchased over $4 trillion worth of bonds to stimulate growth in the economy. Risk markets responded, as is demonstrated by the close correlation between the S&P 500 and growth of the Fed's balance sheet through its bond purchases.
  • Warning: Half of oil junk bonds could default

    12/11/2015 3:30:25 PM PST · by Lorianne · 10 replies
    CNN ^ | 10 December 2015 | Matt Egan
    Brace for a wave of defaults in the oil patch. Energy companies that loaded up on debt during the oil boom are likely to have trouble paying back those loans. Oil prices have collapsed over 65% since the middle of last year to below $37 a barrel this week and there's no recovery in sight. It's fueling financial turmoil on Wall Street with Standard & Poor's Ratings Service recently warning that a stunning 50% of energy junk bonds are "distressed," meaning they are at risk of default. Overall, about $180 billion of debt is distressed. It's the highest level since...
  • Bill Gross’ Janus bond fund suffers highest monthly outflow in November

    12/08/2015 3:24:44 PM PST · by sparklite2 · 11 replies
    One America News Network ^ | December 8, 2015 | Jennifer Ablan
    In November, Soros Fund Management LLC, which billionaire investor George Soros chairs, pulled its roughly $500 million from an account run by Gross at Denver-based Janus Capital Group Inc . The cash withdrawals are particularly significant for Gross as his Janus Global Unconstrained Bond Fund, which Gross began managing in October 2014, holds more than $700 million of Gross' personal money. So far this year, the Janus Global Unconstrained Bond Fund is posting negative returns of 2.01 percent and lagging 72 percent of its peer category, according to Morningstar.
  • Moody's moves Illinois closer to junk-bond status

    10/22/2015 4:26:27 PM PDT · by george76 · 6 replies
    Crain's Chicago Business ^ | October 22, 2015 | GREG HINZ
    Illinois' budget war took another whack out of the state's credit rating today as Moody's Investors Service lowered its review of state debt, moving it to Baa1 from A3. And the firm said its outlook on the state is negative—often a sign that another downgrade is coming in a few months. "The downgrades reflect weakening of the state's financial position during 2015 and our expectation that an ongoing budget stalemate will lead to further deterioration," Moody's said in a statement. ... In bumping Illinois' debt to three levels above junk, Moody's followed the lead of Fitch Ratings, which took a...
  • Treasury Sells 3-Month Bills At 0% Yield For First Time Ever

    10/10/2015 4:16:27 PM PDT · by Lorianne · 77 replies
    Zero Hedge ^ | 06 October 2015 | Tyler Durden
    "Investors" are so desperate to hold on to short-term paper that they paid $100 for a 3-month Treasury-bill at today's auction. That is a 0% yield - for the first time ever - lower even than the auction right after Lehman's bankruptcy in Nov 2008. It is probably safe to say that NIRP is next, followed by more negative yields further to the right of the curve, as the US gradually becomes Europe. But don't worry: as Yellen admitted during her healthcare-scare speech, "nominal interest rates cannot go much below zero", just a little.
  • Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

    10/07/2015 8:36:10 AM PDT · by Enlightened1 · 13 replies
    The Wall Street Journal ^ | 10/07/15 | Min Zeng And Lingling Wei
    Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis. Sales by China, Russia, Brazil and Taiwan are the latest sign of an emerging-markets slowdown that is threatening to spill over into the U.S. economy. Previously, all four were large purchasers of U.S. debt. Few analysts expect much higher yields in the Treasury market as a result. Foreign private purchases of U.S. debt have increased amid pessimism about the world economic outlook. U.S. firms and financial institutions continue to buy...
  • The Numbers Are In: China Dumps A Record $94 Billion In US Treasurys In One Month

    09/07/2015 10:25:51 AM PDT · by SeekAndFind · 17 replies
    Zero Hedge ^ | 09/06/2015 | Tyler Durden
    Shortly after the PBoC’s move to devalue the yuan, we noted with some alarm that it looked as though China may have drawn down its reserves by more than $100 billion in the space of just two weeks. That, we went on the point out, would represent a stunning increase over the previous pace of the country’s reserve draw down, which we began documenting months ahead of the devaluation (see here, for instance). We went on to estimate, based on the projected size of the RMB carry trade unwind, how large the FX reserve liquidation might need to be to...
  • UBS backs away from its Puerto Rico funds after downgrades

    07/28/2015 4:13:10 PM PDT · by jimbo123 · 10 replies
    Reuters ^ | 7/23/15 | SUZANNE BARLYN
    UBS AG is backing away from its own Puerto Rico bond funds, warning clients that they can no longer use them as collateral for certain loans after the island's financial troubles resulted in downgrades by major credit rating agencies. In a July 13 letter to clients, reviewed by Reuters, UBS’ Puerto Rico arm said it would contact investors to discuss alternatives. “The firm will also reduce to zero the collateral value assigned to all Puerto Rico closed-end funds shares,” UBS wrote to investors. Puerto Rico’s Governor Alejandro Garcia Padilla dropped a bombshell on holders of its $72 billion debt in...
  • The Greeks should vote “no!”

    07/04/2015 10:27:15 AM PDT · by Tolerance Sucks Rocks · 61 replies
    The Washington Times ^ | July 2, 2015 | Peter Morici
    Sunday, Greeks should vote “no”!Hellenic voters are being asked whether they accept the terms offered by the European Union, European Central Bank and International Monetary Fund to extend the bailout for Athens‘ troubled finances or give Prime Minister Tsipras a mandate to insist on a better deal.Those conditions include more cuts in government supported pensions, higher taxes and labor market reforms other European governments’ are often not inclined to accept in the conduct of their own affairs.Urging a Yes vote, European leaders and their supporters in private institutions claim more austerity would reinvigorate the Greek economy and permit Greeks to...
  • US stocks to keep eye on rising bond yields

    06/10/2015 8:23:35 AM PDT · by Citizen Zed · 1 replies
    cnbc ^ | 6-10-2015 | Dhara Ranasinghe
    Trade in U.S. stock futures pointed to a slightly higher open for Wall Street shares on Wednesday, as focus once again turned to rising yields in government bond markets. The yield on the benchmark 10-year Treasury climbed to a new eight-month peak of around 2.47 percent in the European session, pulled higher as the German Bund yield pushed above the 1-percent psychological barrier. In morning London trade, stock futures for the Dow Jones industrial average, S&P 500 and Nasdaq all traded in positive territory. There is no significant economic data due this session.Total weekly mortgage application volume jumped 8.4 percent...
  • The Gathering Bond Storm in Chicago

    05/19/2015 11:00:58 AM PDT · by SeekAndFind · 15 replies
    Economy and Markets ^ | 05/19/2015 | Rodney Johnson
    Recently the bond rating company Moody’s Investor Service cut their ranking of Chicago to junk status. The move ticked off a lot of people in the Windy City who think Moody’s overstated the case. I agree that Moody’s is wrong… not because they went too far, but because they didn’t go far enough. Chicago is not close to bankrupt. It’s completely bankrupt. People are just afraid to say this out loud. The city’s pensions are underfunded by $20 billion. Moody’s gave a rating that reflects how the city is performing. City officials are just angry Moody’s called them out. The...
  • Chicago credit rating plummets to junk status following pension ruling

    05/12/2015 4:07:05 PM PDT · by NRx · 30 replies
    Chicago Tribune ^ | 05-12-2015 | Hal Dardick
    A major rating agency downgraded the city of Chicago's creditworthiness two notches to junk status, a move likely to increase the city's borrowing costs and make investors skittish as the financial world reacts to last week's Illinois Supreme Court ruling that bodes ill for city efforts to resolve its massive pension fund shortfall. Moody's Investors Service downgraded the city's debt rating on bond issues backed by property, sales and fuel tax revenue to Ba1, one notch below investment grade, from Baa2, specifically citing last week's Supreme Court ruling on an attempt to cut state pension costs. Moody's calls the Ba1...
  • Negative interest rates put world on course for biggest mass default in history

    04/29/2015 5:13:17 AM PDT · by MeneMeneTekelUpharsin · 46 replies
    The Telegraph ^ | 28 April 2015 | Jeremy Warner
    Here’s an astonishing statistic; more than 30pc of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate. With the advent of European Central Bank quantitative easing, what began four months ago when 10-year Swiss yields turned negative for the first time has snowballed into a veritable avalanche of negative rates across European government bond markets. In the hunt for apparently “safe assets”, investors have thrown caution to the wind, and collectively determined to pay governments for the privilege of lending to them. On a country by country...
  • UK Jeremy Warner: <img src= ></img>

    04/28/2015 4:17:53 PM PDT · by concernedcitizen76 · 4 replies
    UK Telegraph | April 28, 2015 | Jeremy Warner
    John Maynard Keynes obit 21 April 1946 Franz Kafka obit 03 June 1924 Here’s an astonishing statistic; more than 30pc of all government debt in the eurozone – around €2 trillion of securities in total – is trading on a negative interest rate. With the advent of European Central Bank quantitative easing, what began four months ago when 10-year Swiss yields turned negative for the first time has snowballed into a veritable avalanche of negative rates across European government bond markets. In the hunt for apparently “safe assets”, investors have thrown caution to the wind, and collectively determined to pay...
  • Expert: Billions in Chicago Bonds Pay for Literally Nothing

    03/31/2015 7:40:04 AM PDT · by Kaslin · 20 replies
    Townhall.com ^ | March 30, 2015 | John Ransom
    In masterful article by Kristi Culpepper, a muni-bond expert who works for the state of Kentucky, Chicago’s bond financing scheme is exposed as a house of cards that postpone debt payments in return for higher interest payments over time. Amongst the questionable strategies exposed by Culpepper include using long-term financing to cover day-to-day expenses, using bonds to pay pension obligations and misappropriating returns from the interest rate swap portfolio as an “ATM” for the city. And the winners are: Chicago city employees—union employees, for whose paychecks and benefit the scheme of providing short term-cash in return for high interest payments...
  • US Taxpayers To Fund Ukraine Bailout With Bond Guarantee

    03/20/2015 12:25:34 PM PDT · by tcrlaf · 3 replies
    Zerohedge ^ | 3-20-2015 | Durden
    <p>Last week we reported that as part of the latest "check kiting" bailout scheme, Greek pensioners (and now utility companies) are being raided by the Greek government so that it can repay its debts to the IMF, which in turn would go ahead and fund a part of the recently approved $17.5 billion bailout of Ukraine, which then would have the money to pay its debts to Russia... and the IMF. And, as we also noted, "The only question is how long will it take the current puppet government to syphon off enough funds into various illegal ventures and offshore accounts before the IMF has to step back in a la Greece with bailout #2."</p>
  • Billionaires Dumping Stocks, Economist Knows Why

    02/26/2015 12:18:13 PM PST · by Citizen Zed · 52 replies
    newsmax ^ | 2-26-2015
    A handful of billionaires are quietly dumping their American stocks . . . and fast. Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods. Buffett’s holding company, Berkshire Hathaway, has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced its overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold...
  • US Treasury to sell US$64 billion in notes, bonds next week

    02/04/2015 7:24:27 AM PST · by Citizen Zed · 10 replies
    Business Times ^ | 2-4-2015
    Complicating the debt-management outlook is possible political wrangling over the debt ceiling after its suspension ends in mid-March. That will require the Treasury to use so- called extraordinary measures to avoid going over the limit until Congress raises it. The department today said it will give clarity at a later date on how long it can go after March 15 before the limit is breached. "Extraordinary measures will allow the government to continue to meet its obligations for a period of time after March 15," Seth Carpenter, acting assistant secretary for financial markets, said in a statement today. "That said,...
  • ECB Pulls The Trigger: Blocks Funding To Greece - Full Statement

    02/04/2015 1:17:23 PM PST · by tcrlaf · 22 replies
    Zerohedge ^ | 1-4-2015 | Durden
    Just what the market had hoped would not happen... *ECB SAYS IT LIFTS WAIVER ON GREEK GOVERNMENT DEBT AS COLLATERAL *ECB SAYS IT CAN'T ASSUME SUCCESSFUL CONCLUSION OF GREECE REVIEW What this means simply is that since Greek banks are now unable to pledge Greek bonds as collateral and fund themselves, and liquidity is about to evaporate, the ECB has just given a green light for Greek bank runs... and all the worst parts of the bible (or merely a negotiating move to let Greece see just what kind of chaos this will create). And now finally, after many years...
  • "World Running Out of Positive-Yield Bonds"

    01/24/2015 8:58:19 AM PST · by Kaslin · 9 replies
    Townhall.com ^ | January 24, 2015 | Mike Shedlock
    In the wake of ECB's €60 billion a month QE madness (see "QE already Working" Says IMF Lagarde; Ho-Hum Details Announced; Gold the Place to Be), one might be wondering what it may do to European bond yields. German 10-Year Bond Yield image: http://3.bp.blogspot.com/-of_KecAryfU/VMKLTNvRyfI/AAAAAAAAcFk/6Kswiqag_hg/s400/German%2B10-Year%2Bbond%2Byield.png click on chart for sharper image Since September of 2013, yield on the German 10-year bond has plunged from around 2% to 0.367%. ECB Risks German Bonds Mismatch Exceeding 100 Billion Euros With €720 billion annual asset purchases, a huge portion of the bonds the ECB buys will be German. Bloomberg explains ECB Risks German Bonds...
  • All Swiss government bond yields out to nine years go negative

    01/15/2015 7:42:16 PM PST · by Signalman · 10 replies
    Reuters ^ | 1/15/2015 | Jamie McGeever
    Jan 15 (Reuters) - All Swiss government bill rates and bond yields out to nine- year maturities traded below zero on Thursday, after the Swiss National Bank stunned markets by scrapping its exchange rate cap on the franc and lowered interest rates to -0.75 percent. This was unprecedented in modern times, and analysts said it was only a matter of time before the benchmark 10-year yield dropped below zero too. Swiss rates and yields out to five years had already been trading below zero, but the SNB's bombshell turned the yield on nine-year bonds negative for the first time as...
  • Warning: Bond rates are going negative

    01/15/2015 6:38:42 PM PST · by MeneMeneTekelUpharsin · 57 replies
    CNN Money ^ | 15 January 2015 | Matt Egan
    Investors are so nervous that they are basically willing to lose money when they buy some government bonds. It's part of the latest fad in finance that's all the rage: "going negative." The yields on government bonds in Europe and Japan have dipped into the uncharted waters of negative territory. That means buyers of those bonds are essentially taking a loss just to hold onto those assets. They think their money is better off losing a few cents than putting it elsewhere. "It's basically a fee for fear," said Nicholas Colas, chief market strategist at ConvergEx. "Fear of deflation, fear...
  • 10 Key Events That Preceded The Last Financial Crisis That Are Happening Again RIGHT NOW

    01/08/2015 2:11:17 PM PST · by SeekAndFind · 26 replies
    TEC ^ | 01/06/2015 | Michael Snyder
    If you do not believe that we are heading directly toward another major financial crisis, you need to read this article. So many of the exact same patterns that preceded the great financial collapse of 2008 are happening again right before our very eyes. History literally appears to be repeating, but most Americans seem absolutely oblivious to what is going on. The mainstream media and our politicians are promising them that everything is going to be okay somehow, and that seems to be good enough for most people. But the signs that another massive financial crisis is on the horizon...
  • It's Like We're In The Panic Phase Of A Financial Crisis

    01/06/2015 5:41:10 AM PST · by blam · 23 replies
    BI ^ | 1-6-2015 | Sam Ro
    Sam Ro January 6, 2015Over the past few days, we've seen stocks plummet and oil prices crash. But the most interesting moves have been occurring in the global bond markets where government bond yields have been plunging to historic lows. "2015 starts off with the average of G3 10 year government yields below 1%," wrote Steven Englander, Citi's global head of G10 FX Strategy. The G3 currency group consists of the US dollar, the euro, and the yen. On Tuesday, the US 10-year yield got as low as 1.959% and Japan's 10-year yield fell to as low as 0.288%. In...
  • How the Swaps Market is Preparing for a Venezuelan Default

    12/10/2014 9:58:43 AM PST · by george76 · 4 replies
    wsj ^ | Dec 4, 2014 | Christopher Whittall
    Venezuela is really feeling the pinch from sliding oil prices. Now its bonds are in such bad shape that some investors are treating the country’s default as a near certainty. And they are taking action. How? Well certain banks have started to offer swap contracts that allow investors to fix the amount they can recover on insurance bought against a restructuring of the country’s debt, according to investors. If CDS contracts are triggered, the cheapest Venezuelan bonds trading in the market at that time will be used to determine payouts to protection holders. Those not wanting to take any chances...
  • Billions fly out the door at Pimco (Bill Gross)

    09/29/2014 4:48:27 AM PDT · by MeneMeneTekelUpharsin · 13 replies
    Market Watch ^ | 29 September 2014 | Kirsten Grind, Gregory Zuckerman and Min Zeng
    Pacific Investment Management Co. suffered roughly $10 billion of withdrawals following the Friday departure of co-founder Bill Gross, a person familiar with the matter said, a sign of how quickly Mr. Gross’s surprise move is reshaping the bond-investing landscape. Pimco is bracing for more outflows on the heels of the veteran investor’s departure after months of internal strife over his leadership. At the same time, some managers say they remain committed to the firm. Some within the Newport Beach, Calif., investment firm are projecting it will lose at least $100 billion or more in assets due to withdrawals, the person...
  • About That Friday Bounce

    09/27/2014 9:01:51 AM PDT · by Seizethecarp · 11 replies
    Seeking Alpha ^ | September 27, 2014 | Eric Parnell, CFA
    First, the late Friday rally did manage to break the large-cap index back out above the downward sloping trading channel that has dominated the month, but only barely. Moreover, stocks quickly encountered heavy resistance at around 3PM at a shorter-term and much steeper downward sloping trading channel that has formed since the market peak on September 19. In short, it was a good bounce on Friday, but U.S. large-cap stocks still have a long way to go before they are even remotely in the clear to stage the next advance to new highs. For the rest of the U.S. stock...
  • Pimco Founder and Bond Guru, Bill Gross Quits Firm for Janus Capital

    09/26/2014 6:13:02 AM PDT · by SeekAndFind · 16 replies
    TIME ^ | 09/26/2014 | Laura Lorenzetti
    Bill Gross, who co-founded Pacific Investment Management, or Pimco, in 1971, will leave his own firm to join competitor Janus Capital. Gross served as the firm’s chief investment officer and managed the Pimco Total Return fund — one of the world’s largest bond funds with more than $1.9 trillion in securities, according to the company’s website. The fund has not done well for years, though, and has been plagued by huge outflows. “I look forward to returning my full focus to the fixed income markets and investing, giving up many of the complexities that go with managing a large, complicated...
  • Argentina Is Going Rogue

    08/20/2014 9:47:09 PM PDT · by blam · 18 replies
    BI ^ | 8-21-2014 | Linette Lopez
    Linette LopezAugust 20, 2014Muted headlines about bond swaps aren't doing justice to the announcement Argentina's president made last night. With her attempt to pass a law nullifying a U.S. Court's ruling that the country pay all its creditors, Argentina is effectively turning its back on the rules governing international finance. If Argentina's congress passes this law, the country could enter a place where rules no longer matter and negotiation with the hedge funds to which it owes over $1.3 billion in sovereign debt are all but impossible. What this law does is put debt that was once legally governed by...
  • Moody's pushes Puerto Rico debt deep into junk status

    07/01/2014 2:58:11 PM PDT · by george76 · 13 replies
    AFP ^ | 01 July 2014
    Ratings company Moody's on Tuesday slashed Puerto Rico's debt rating by three notches into even deeper junk status after the US territory passed a debt-restructuring law. Moody's Investors Service cut the rating to "B2" from "Ba2" and said the outlook was negative, indicating further downgrades were possible. Now dubbed the "Greece of the Caribbean," the archipelago is, like Greece, reeling under massive debt. Over the past decade, the commonwealth's debt has doubled to nearly $70 billion and investors are growing increasingly worried the government is running out of cash. In a bid for debt relief, the Puerto Rican authorities recently...
  • Argentine Default Looms; Refuses To Negotiate; Admits Next Bond Payment "Impossible"

    06/19/2014 8:12:51 AM PDT · by SeekAndFind · 15 replies
    Zero Hedge ^ | 06/19/2014 | Tyler Durden
    Argentina's attempt to work around SCOTUS decision in favor of the 'holdouts' was rejected (under anti-evasion orders) last night leaving Argentina no alternative but to threaten to default on its debt. The government called it "impossible" to pay bond service due on June 30, because payment to holders of restructured bonds could not be made unless the 'holdouts' were paid $1.33 billion at the same time (and Argentina's economy minister argues could be up to $15 bn) which the distressed country clearly does not have. For the first time in 12 years, Argentina has agreed to negotiate with the...
  • Russia Dumps 20% Of Treasury Holdings, Mystery "Belgium" Buyer Adds Another $40 Billion

    05/15/2014 10:02:41 AM PDT · by tcrlaf · 22 replies
    Zerohedge ^ | 5-15-2014 | Tyler Durden
    Back in mid-March, there was a brief scare after the start of the Ukraine conflict, when Fed custody holdings plunged by a record $104.5 billion (if promptly bouncing back the following week), leading many to believe that Russia may have dumped its Treasurys, or at least change its bond custodian. We noted that we wouldn't have a definitive answer until the May TIC number came out to know for sure how much Russia had sold, or if indeed, anything. Moments ago the May TIC numbers did come out, and as expected, Russia indeed dumped a record $26 billion, or some...
  • Ukraine Just Issued $1 Billion Bonds Backed By The US Taxpayer

    05/14/2014 12:22:37 PM PDT · by Nachum · 14 replies
    zero hedge ^ | 5/14/14 | tyler durden
    The bailout floodgates are open and the US taxpayer is footing the bill once again - whether through IMF loans or more directly. Today saw Ukraine issue $1 Billion 5-Year Notes at a stunningly low risk of only 28bps above US Treasuries and dramatically cheaper than the cost of capital in the public markets (and from the IMF) which yield over 10%. The reason for the 1) low cost, and 2) actual ability to raise debt... the bond is guaranteed by the US Agency for International Development and "assures full repayment of principal and interest" based on the full faith...
  • Interest Rates Jump After Weak Bond Auction

    05/08/2014 11:15:21 AM PDT · by PoloSec · 7 replies
    Business Insider ^ | May 8 2014 | Sam Ro
    Long-term bonds are tumbling and interest rates are spiking after a 30-year Treasury bond auction saw weak demand. According to Bloomberg, 30-year Treasury bonds sold at a yield of 3.440%, which was much higher than the 3.392% expected by analysts. The bid-to-cover ratio, a measure of demand, was low at 2.09. Analysts were looking for a ratio of closer to 2.36. The results of the auction came out at 1:01 p.m. ET, which was when prices plunged.
  • Furious Russia, Downgraded Just Above Junk By S&P, Proposes "Scorched Earth" Retaliation on NATO

    04/25/2014 7:30:37 AM PDT · by SeekAndFind · 19 replies
    Zero Hedge ^ | 04/25/2014 | Tyler Durden
    Cyprus and Russia - what's the difference (aside from the fact that the former was a money laundering offshore center of the latter until last year of course)? If you said one is a lackey to statist, selfish banker interests, and after having its economy thoroughly destroyed by the great doomed European sociopolitical (and pathological) experiment, came crawling back to its Eurozone masters, while the other couldn't care one bit about Pax Petrodollariana and the global central bank cabal, you are right. In which case it will also be clear why a few hours ago that joke of a...
  • Santelli Slams "Don't Ignore The Long-End... Recessionary Pressures Are Building"

    04/10/2014 7:36:05 PM PDT · by Nachum · 2 replies
    Zero Hedge ^ | 4/10/14 | tyler durden
    With 30 year bond yields set to close their lowest in 10 months, CNBC's Rick Santelli is concerned at the signals that the Treasury yield curve is sending.If yesterday's minutes from the Fed were supposed to walk back their 'hawkish' tone, then Santelli slams they are "gonna need a really big billboard" because the term structure is still flattening. "When 'flattening' is the theme, that is not painting a rosy outlook for the long-term economy," and as Santelli warns, this is when the Fed is pulling out of its extraordinary policies. Santelli screams, "the entire monetary policy side has to...
  • New doomsday poll: 99.9% risk of 2014 crash

    03/15/2014 2:47:50 PM PDT · by Oldeconomybuyer · 22 replies
    Market Watch ^ | March 15, 2014 | by PAUL B. FARRELL
    Commentary: Black-swan crisis warning for now through mid-April. SAN LUIS OBISPO, Calif. — Global risks are accelerating. This is our fourth major poll update of industry leaders: A critical review of their warnings from early last year when we first predicted a 87% risk of a crash: Bernanke’s Fed saw an “unsustainable bubble” ... Gross: “credit supernova” ... Gundlach: “kaboom ahead” ... Ellis: “Don’t own bonds” ... Shilling: “shocker” ... Roubini: “Prepare for perfect storm” ... Shiller: “Irrational exuberance is back” ... Schiff: “Doubling down” on “doomsday” prediction ... InvestmentNews’ warning 90,000 advisers: “tick, tick ... boom!”
  • Citing Growth, Fed Again Cuts Monthly Bond Purchases

    01/29/2014 11:36:50 AM PST · by John W · 8 replies
    The New York Times ^ | January 29, 2014 | BINYAMIN APPELBAUM
    WASHINGTON — The Federal Reserve announced Wednesday another $10 billion cut in its monthly bond purchases in a statement that attributed the decision to “growing underlying strength in the broader economy.” The statement, published after a two-day meeting of the Fed’s policy-making committee, reflected the optimism of Fed officials that the economy is finally poised for faster growth after years of false starts and setbacks. It was the committee’s first unanimous decision since 2011. The Fed said it would expand its holdings of Treasury and mortgage-backed securities by $65 billion in February, down from $75 billion in January and $85...