Markets News Regulators 

The ECB’s bond-buying program could have masked major risks

“She was talking about the effects of the ECB’s bond buying program as part of a broader warning that investors are no longer seeing risks” writes Wolf Street for businessinsider.com. When credit risk is not being priced at all – when it’s free – this most important gauge of the credit market is worthless.Credit risk wasn’t priced in at all.That’s when investors will begin to discover, as Erdoes put it so elegantly, that they have “a bunch of walking-zombie companies.”.  Source: businessinsider.com Share This:

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Markets News 

Contrarian Edge: Why my firm sold short-term bond ETFs and bought U.S. Treasury bills

“As a side note, since we are on the topic of ETFs, today investors look at ETFs as a panacea and a way to get around active management” writes Vitaliy Katsenelson for marketwatch.com. Treasury bills are the safest securities in existence today, and they are yielding 2%, so we gain safety and increase yield at the same time.Liquidity is measured on two dimensions, time and price — it is the degree to which an asset can be bought or sold without impacting its price. Source: marketwatch.com Share This:

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GBP Markets News Regulators 

Treasury yields turns lower as long-dated bonds stay anchored

“Treasury yields fell Friday as simmering trade tensions and speeches from the Federal Reserve helped to buoy demand for long-dated bonds” writes Sunny Oh for marketwatch.com. The 10-year Treasury note yield TMUBMUSD10Y, -0.13%   was down 0.9 basis point to 2.844%, on pace to end slightly higher than last week’s close at 2.831%.The 2-year note yield TMUBMUSD02Y, -0.62%   fell 0.8 basis point to 2.586%, while the 30-year bond yield TMUBMUSD30Y, -0.25%   slipped 0.8 basis point to 2.942%.The yield gap between the 2-year note and the 10-year note has…

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Markets News 

China Clears Deutsche Bank To Underwrite Corporate Bonds

“Deutsche Bank secured approval to underwrite corporate bonds in China as the market continues to open up to foreign investors and financial services players” reports pymnts.com. Reports said foreign investors increased China onshore bond holdings by $24.3 billion in the first quarter of the year.China is looking to stem capital outflows and heighten the yuan’s stance in the global markets, reports added.Reports in The Business Times on Thursday (July 12) said the Germany-based bank was cleared by the National Association of Financial Market Institutional Investors (NAFMII) to underwrite corporate bonds…

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RAICES is also calling for President Trump’s full cooperation.

“The staggering $20 million raised via Facebook to support immigrant families separated at the border will be used to post bail bonds for mothers, recipient organization Refugee and Immigrant Center for Education and Legal Services announced Tuesday” writes unknown author for huffingtonpost.com. The Willners’ Facebook campaign is now the largest the social network has seen. “RAICES is dedicated, and uniquely positioned to take on the task of paying bonds for parents separated from their children, one by one.Their campaign quickly picked up steam as the full impact of the Trump…

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Markets News 

White House ‘forced us into this position’

“The staggering $20 million raised via Facebook to support immigrant families separated at the border will be used to post bail bonds for mothers, recipient organization Refugee and Immigrant Center for Education and Legal Services announced Tuesday” writes Aol Staff for aol.com. The Willners’ Facebook campaign is now the largest the social network has seen. “RAICES is dedicated, and uniquely positioned to take on the task of paying bonds for parents separated from their children, one by one. Source: aol.com Share This:

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Sea of red in the Treasury market may signal the bond-buying boom is over 

“This time, there are signs the sea of red in Treasury bonds could signal a bear market rather than offer a chance to scoop up bargains” writes unknown author for cnbc.com. Welcome to the new U.S. Treasury market, where 75 percent of existing government bonds are now trading below par.Such a spike in supply of new debt could mean that off-the-run securities, despite hefty discounts, could struggle to find buyers.A widening of spreads between yields offered by off-the-run bonds and the newest securities already suggest growing concerns about the market’s…

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Markets News 

Sea of red in Treasury market may signal bond boom is over

“This time, there are signs the sea of red in Treasury bonds could signal a bear market rather than offer a chance to scoop up bargains” writes Midwest Communications Inc for 95kqds.com. Welcome to the new U.S. Treasury market, where 75 percent of existing government bonds are now trading below par.Such a spike in supply of new debt could mean that off-the-run securities, despite hefty discounts, could struggle to find buyers. “It is getting harder to transact, even in the most liquid market in the world, relative to past experiences,”…

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Markets News Regulators 

Cramer translates what US bonds are saying, and it’s not good for the economy

“One ongoing trend that could “send us over the edge” and into recession is the Federal Reserve’s agenda for hiking interest rates, Cramer said” writes Elizabeth Gurdus for cnbc.com. They’re saying that with the two-year Treasury so close in yield to the 10-year Treasury, … we’re almost experiencing a flat yield curve,” the “Mad Money” host said.Specifically, the two-year U.S. Treasury note currently yields 2.56 percent, while the 10-year U.S. Treasury yields 2.83 percent. Source: cnbc.com Share This:

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