Category Archives: Debt

exploding inflation

Bonds: Negative yields say inflation is dead. Oh really….?

As more than 15% of the global government debt market enters negative yield territory we are truly living in extraordinary times. The corollary of those conditions is that the market is in effect pricing in no inflation. Oh really?

February 26th, 2015 by

Debt

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rates rocket

Bonds: The most important chart in the world today…

Lots to read on Greece, oil, corporate earnings and Apple but the critical driver of equities markets remains interest rates. Amid multiple headlines of central bank QE, rate cuts and record low yields you might want to watch this…..

February 11th, 2015 by

Debt

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flying party

ECB QEuphoria as 3 huge markets fly…….

Not unlike QE announcements in the US and Japan, the reaction of investors in 3 asset classes has been along predictable lines. Here’s the graphic tale from the coalface…..

January 23rd, 2015 by

Debt

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broker angst

Not just US energy debt causing angst in high yield markets…

The fall-out from the oil shock drop has quickly attracted commentary as to potential contagion in the US debt markets and its approximate $200 billion of high yield bonds. But contagion does not respect country borders….

January 14th, 2015 by

Debt

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athens

Greece is the word…..again!

Oh dear, another political crisis in Greece and an election due on January 25th. So far, markets are reasonably calm about the outcome. The question for WealthiFi readers might be “Will Greek bank deposits show similar inertia?”. 

December 30th, 2014 by

Debt

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oil pain

Financials: US high yield bond market cracking or fracking?

The majority of mainstream commentary has focused on the dramatic fall in the oil price, the share price carnage in energy stocks and a potential boost to consumers. However, the financial sector will be watching developments nervously.

December 1st, 2014 by

Debt

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herding

Europe: Is the herd bond trade unravelling?

Yesterday we wrote about our concerns re Europe and the optimistic view that all euro sovereign bond yields should trend down as if we were on the road to Japan. We didn’t have to wait long to witness investor pain…..

October 15th, 2014 by

Debt

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top trader

Is this the best trade of the year?

Ok, so we have been banging on about delusional prospects for the oil price for ages so a 20% fall in Brent pricing in recent months is no huge surprise. But who would have picked the following as the other … Continue reading

October 14th, 2014 by

Debt

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japan lab rat

Japan: The lab rat is experiencing confusion….

The Japanese stock market is hitting new highs as the Yen continues its slippage. However, the world’s most dangerous financial experiment is still struggling to deliver tangible reflation results.

September 19th, 2014 by

Debt

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china oil

Is the oil price confusion related to China…?

We have commented on these pages, and others have queried the strange fact of oil price slippage in the face of massive geopolitical headwinds in the Mid-East and Ukraine. But maybe the commodity price slippage is more demand driven?  

September 18th, 2014 by

Debt

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