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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 […]