Snookered
Did Jerome Powell, Chairman of the Federal Reserve, get himself into a pickle? With bond yields still on the rise, it´s starting to look that way. The markets seem to […]
Category Archives: BONDS
Bond issues
What to do about government bonds? The yield on government bonds is historically low, while the risk is high. In the event of rising inflation, they offer little or no buffer. Nevertheless, we shouldn’t ban them completely from multi-asset portfolios just yet.
The Yieldless Society
Central banks worldwide – with the Fed and the ECB at the forefront – are on the brink of implementing their historically rapid policy reversal, yet interest rates are already […]
Equity v Bond Returns
Charts showing massive divergence are interesting to look at most of the time. And the ‘gap’ chart between US equity and bond returns is no exception. Since the start of […]
The era of extraordinary monetary policy continues
Few investors anticipated that Federal Reserve Chairman Jerome Powell could sound even more dovish than he has in recent months. But, at the last FOMC meeting, he managed to do […]
The Void?
Just recently, bond investor PIMCO published the chart shown above. It’s one of many charts hitting headlines in recent weeks, revealing that the end of an era of unprecedented monetary […]
Rational Exuberance?
Here is a ‘surprise’ for you. The number of news stories stating that irrational exuberance is back on the stock markets is growing rapidly. In addition, irrational exuberance was mentioned […]
Have bond investors really gone mad this time?
Just recently, the following graph hit my Twitter timeline (courtesy @TihoBrkan). It shows that the yield on Eurozone high yield bonds is now equal to the yield on the 10-year […]
Taper Time!
Inflation in the Eurozone spiked to 1.8% in January, the highest level in almost four years! More importantly, 1.8% is also extremely close to the ECB’s inflation target of ‘below, […]
Oil will quickly change the inflation landscape
The Eurozone risks getting stuck in a deflationary trap. Well, at least that’s what the President of the European Central Bank, Mr. Draghi, keeps telling us. Eurozone inflation numbers, which […]
