Bonds

Wild Rides, Who should be scared?

Submitted by Chris Ducret on Thu, 03/05/2020 - 18:30

+/- 1000 point swings. Once day, we are back, next day we are sunk, rinse and repeat.  Repo rates are over subscribed. Nearly $300B in the last few days issued. Why the liquidity problem.  The Feds not QE4 will have pumped nearly $1T in 6 months. And still not stabilizing.  Bonds heading to zero and catching up with friends in Japan & Europe when the US hits negative yields. 

Virus Induced Frozen Credit Market

Submitted by Chris Ducret on Thu, 02/27/2020 - 02:24

The impact of Coronavirus continues to expose interesting scenarios.  One that pops out is the corporate bond market is now frozen. 

Chris DucretThe first 3 weeks of February bonds in the US and Europe combined for $150B+ in new bonds.  These bonds fund everything from M&A to factories to paying off other high interest rate debt.