Analysis Topic: Interest Rates and the Bond Market
The analysis published under this topic are as follows.
Wednesday, September 29, 2010
U.S. Debt Options of Default or Hyperinflation / Interest-Rates / US Debt
By: Graham_Summers
The big financial myth-buster of the week is that the alleged deleveraging of the US consumer has in fact been a giant myth. According to the Wall Street Journal, if you account for defaults, US consumers have only pared down their debts by an annual rate of 0.8% since mid-2008.
Tuesday, September 28, 2010
Could Debtflation Cause Gold's Big Sell Off? / Interest-Rates / US Debt
By: David_Galland
David Galland, Managing Editor, The Casey Report writes: We recently received the following comment in our Q&A Knowledge Base.
Read full article... Read full article...Investors should be prepared to sell gold as either increased inflation expectations or doubts around debt sustainability force a sharp increase in US Treasury bond yields. Simply put, in an environment of high real interest rates, the allure of gold could disappear as quickly as it did in the early 1980s when Paul Volcker took control of the Federal Reserve.
Tuesday, September 28, 2010
The Risks of Buying U.S. Treasury Bond Funds / Interest-Rates / US Bonds
By: Nilus_Mattive
A number of us here at Weiss have been warning you about the dangers of buying bonds in this ultra-low-interest-rate environment, especially longer-dated U.S. Treasuries.
But as I recently told my Dad’s Income Portfolio subscribers, I think mainstream investors are still ignoring the risks they’re taking with bonds, particularly when it comes to fixed-income mutual funds and exchange-traded funds.
Read full article... Read full article...
Monday, September 27, 2010
Bank of England Confirms Policy of Stealing Savers Wealth via Negative Real Interest Rates / Interest-Rates / Savings Accounts
By: Nadeem_Walayat
The Deputy Governor of the Bank of England Charlie Bean effectively told savers to forget about receiving inflation beating interest rates and therefore should seek to spend their savings to boost the economy. The BoE's strategy continues to transfer wealth from savers to borrowers, with more than £20 billion transferred to date by means of negative real interest rates which typically pay savers half the rate of inflation CPI (3.1%) and 1/3rd the rate of the more recognised RPI inflation rate (4.7%) with the trend not relenting as rates continue to be cut all the way towards the bank base rate of just 0.5%.
Monday, September 27, 2010
Are German Bunds Recovering? / Interest-Rates / International Bond Market
By: Seven_Days_Ahead
The story of the Bund throughout much of September was one of decline as traders first took profits and then went short. The Bund had enjoyed a long rally as traders fretted over the global economy and more specifically the US economic recovery, but sentiment changed early in September. Why was that?
Saturday, September 25, 2010
Leveraging Junk Debt Off the Charts / Interest-Rates / US Debt
By: Richard_Daughty
The massive door of the Mogambo Bug-Out Bunker (MBOB) was locked, and I was taking a little break, leisurely looking through the periscope/range finder/fire-control module, calmly reconnoitering the perimeter and keeping an eye on the neighbors, watching them acting like they are innocently mowing their lawns and washing their stupid cars, but who are actually spying on me, like I am too stupid to notice their treachery and perfidy.
Friday, September 24, 2010
Fed Money Printing a Definition of Insanity, Doing the Same Thing and Expecting a Different Result / Interest-Rates / Quantitative Easing
By: Mike_Larson
This week, Federal Reserve officials did it. They jumped the shark. Crossed the Rubicon. Bought a ticket on the express train to financial Never Never Land. Whatever you want to call it.
I say that because Fed Chairman Ben Bernanke and the rest of the members of the Federal Open Market Committee opened the door to a new round of quantitative easing, or “QE2.” Specifically, they said (with the important passages bolded by me):
Read full article... Read full article...
Friday, September 24, 2010
U.S. Money Printing Presses at Warp Speed, Stealth Monetization of U.S. Debt / Interest-Rates / US Debt
By: LewRockwell
Gonzalo Lira writes: Insofar as money is concerned, governments and central banks should be kept as far away from one another as a pedophile from Dakota Fanning. If ever the twain should meet, very bad things would happen. This is because of the disparate natures of government, on the one hand, and the central bank, on the other.
Friday, September 24, 2010
Long Term Bonds, Inflation and Deflation / Interest-Rates / US Bonds
By: Tony_Caldaro
Been thinking about Bonds, inflation, deflation, etc recently. Everyone seems to have a different opinion these days. Checking around all I could find on long term Gov't Bond rates was at the St. Louis FED. Could not find anything elsewhere. After reviewing the charts of Long Term Gov'ts since 1925, Moody's AAA since 1919, and Moody's BAA since 1919 ... I found a pattern.
Thursday, September 23, 2010
Have You Considered International Bond ETFs For Income and Diversification? / Interest-Rates / International Bond Market
By: Ron_Rowland
In these turbulent times, plenty of investors just want steady income. Others realize they need to look outside the U.S. as they ride out the storm. Yet in a world where some once-stable economies are starting to look like emerging markets, they also see the need for diversification.
Wednesday, September 22, 2010
PIMCO's Bill Gross' $8.1 Billion Bet on Inflation / Interest-Rates / US Bonds
By: DailyWealth
Dr. Steve Sjuggerud writes: "Bill Gross's PIMCO made an $8.1 billion wager," Bloomberg news reported last week.
Bill's bet is simple: He's betting inflation will return to the U.S. in the next 10 years. And he's willing to risk billions on the idea.
Wednesday, September 22, 2010
FOMC Policy Statement, Fed's Level of Uneasiness Up Several Notches, Postpones Action / Interest-Rates / US Interest Rates
By: Asha_Bangalore
As expected, the target federal funds rate was left unchanged. President Hoenig of Kansas City cast the lone dissenting vote; he has taken the opposing stance in all meetings year-to-date.
Wednesday, September 22, 2010
UK Debt Interest Spiral Time Bomb Explodes in August / Interest-Rates / UK Debt
By: Nadeem_Walayat
The UK government borrowed a record amount of £13.3 / £15.9 billion in August (public sector net borrowing requirement), which brings total public sector net debt to £823 billion, 56% of GDP (excluding financial interventions - bank capital injections) / £935 billion (including financial interventions) 64% of GDP, which puts the economy within touching distance of breaking above £1 trillion for December 2010.
Tuesday, September 21, 2010
Don’t Get Bullied out of U.S. Bonds / Interest-Rates / US Bonds
By: Money_Morning
Jon D. Markman writes:
Bonds have provided a welcome safe-haven for investors seeking shelter from the financial maelstrom of the past two years, offering steady returns while stocks bounce up and down.
Now some analysts are afraid that once the selling of bonds begins it will be indiscriminate, and there will be a bloodbath. But that fear totally ignores the new investment reality in which we're living.
Read full article... Read full article...
Sunday, September 19, 2010
Was Stagflation Really Hyperinflation? / Interest-Rates / HyperInflation
By: LewRockwell
Gonsalvo Lira writes: In his new post, Gonzalo Lira analyzes the Oil Shock of '79, and the subsequent run up in inflation. He comes to some interesting conclusions about 1979, and how those conclusions might apply to today, if and when there is a run on Treasuries. He writes: "In both 1979 and today, dollars were poised to chase after commodities, following a triggering event. In '79, it was the fall of the Shah of Iran. In 2010, we are waiting for our moment to exit the Treasuries bubble. Therefore, one can look at the events of '79–'82 as a dress rehearsal for what I think will happen today, and in the immediate future – if and when the Treasury bond bubble pops."
Thursday, September 16, 2010
U.S. Treasury TLT ETF Downmove Nearing Completion? / Interest-Rates / US Bonds
By: Mike_Paulenoff
Let's have a look at the pattern that continues to unfold in the iShares 20+ Year Treasury Bond ETF (TLT). Very interesting and tricky set-up in the TLTs now. Let's notice that it plunged to new lows at 100.85 for the decline off of the 8/25 high at 109.50 and in so doing has broken the Apr-Sep up trendline at 102.15 (for a second consecutive session).
Read full article... Read full article...
Thursday, September 16, 2010
Jim Rogers Warns, United States Biggest Debtor Nation in History / Interest-Rates / US Debt
By: Videos
United States is now the largest debtor nation , not in the world , in the history of the world...no country has ever run up so much debt as we have in the US , this is not just a problem for our children and grand children judge , this is a problem for you for me and our parents , you know this is a problem that is hitting all of us in the face right now , those guys in Washington just worry about the next election , they worry to make sure they'll stick around , they do not care about you , they do not care about me , they care about getting their next pay check and not whether the country survives....etc...
Wednesday, September 15, 2010
If You Own These Popular Income Investments, Watch Out / Interest-Rates / US Bonds
By: DailyWealth
Income investments are on fire right now...
Take the MLP sector as an example. MLP stands for "master limited partnership." It's a special corporate structure used by about 100 small companies – mostly natural gas pipelines. MLPs can make excellent dividend investments. You can usually expect to earn around 9% a year in dividends from them.
Wednesday, September 15, 2010
Covered Bonds Hybrid Debt Securitization: The Solution to America’s Economic Ills? / Interest-Rates / Credit Crisis 2010
By: Money_Morning
Shah Gilani writes: When it comes to the global financial crisis and the Great Recession that followed, this could well be the ultimate irony: The Wall Street invention that got us into this mess may well be the only thing that can get us out.
I'm talking about securitization, a masterstroke of financial engineering in which assets are aggregated in order to reduce risk. Once heralded as the greatest financial innovation of modern times, abusive securitization practices instead generated a feeding frenzy of gross excesses that exponentially multiplied risk and drove the world to the brink of financial Armageddon.
Read full article... Read full article...
Tuesday, September 14, 2010
The Curse of Fiat Money, Preventing the Banking Industry from Shrinking / Interest-Rates / Fiat Currency
By: Thorsten_Polleit
It may come as a surprise to many, but the relative size of the US commercial-banking industry has not declined following the so-called credit-market crisis, which developed in the second half of 2007. On the contrary, it has increased since then. While nominal GDP rose 4.2% from the second quarter of 2007 to the second quarter of 2010, banks' total assets rose 18.4%.