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 […]
Tag Archives: high yield bonds
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 […]
Week End Blog – ECB & OPEC Non-events
I don’t know what to make of this week in financial markets. I guess some major events were on the agenda, but nothing to get really excited about. As expected […]
The Current High Yield Spread – What to make of it?
Hit by a sharp downturn in investor sentiment, US high yield spreads have widened to levels last seen since 2011. Back then, slowing (even negative in Q1) growth and the […]
Five Charts revealing the Losers of Lower Oil Prices
Update Jan 7 2015. The price of a barrel of crude oil fell below $48 yesterday. This means the oil price has collapsed 57% since the peak in June of […]
Week End Blog – Tumbling Stocks, Growth Spikes and Yield Reversals
Coincidence or credible warning signal? Whatever it was, the fact is that high yield bonds sold off way before equities got crushed this week. This week is no done yet, […]
Week End Blog – High Yield Shivers, Rate Conundrums and Poker Profits
It long seemed endless, the powerful rally in high yield bonds. But investors grew more cautious in recent weeks, pushing the prices of high yield bonds down. The positive correlation […]
Week End Blog – US inflation, the low volatility saga and Chinese house prices
Ms. Yellen took center stage this week as the Fed again trimmed its bond buying program. The Fed cut its estimate for this year’s US economic growth, after a dismal […]
The Low Volatility Saga Continues…
This week, I posted a tweet about the extremely low levels of volatility in the bond markets. The main message of that tweet was that we are experiencing a rare […]
