The Irish Bailout: Germany Blinks on Bondholders
The news that European governments have banded together again in an attempt to plug the expanding hole in Europe’s debt dike has done little to stem the tidal wave of speculation.
Home » Fixed Income
Fixed Income
Fed Policy: Zombie-nomics and Lethal Injections
It’s hard to way what the U.S. government has put more desperate effort into since the credit crunch and the fall of Lehman
Behind the August Surge in Foreign T-Bond Purchases
Recent data from the Federal Reserve and U.S. Treasury Department show that August experienced the second-largest monthly purchase of U.S. Treasurys by foreigners in history
Short Report: Who’s Unloading What?
Short selling’s ugly loss potential is a bit more palatable in times of low volatility, and there’s plenty of short selling going on these days.
Global Bondage: Rates, Sovereign Issuers Get Flogged
It is becoming more and more nerve-wracking to know what “safe” really means these days as fixed-income returns in anything remotely safe continue to wallow. Worries are hitting big players and retail buyers alike. The Motley Fool notes that Morningstar has lowered ratings of many bond mutual funds, even as investors terrified of stocks cram [...]
Fixed Income Is Broken in More Ways Than One
While at least some fixed-income securities seem like they were designed to provide security to investors, the world of bonds is bigger than that of equities in terms of dollars — and at least as full of fraudsters at every turn.
Muni Massacre Continues: Payoff in Pennsylvania
As a municipal finance sewer system debacle continues to percolate in Alabama’s Jefferson County, elsewhere the fires are burning hotter under a $282 million muni bond financed incinerator in Pennsylvania. Harrisburg, Pennsylvania has been having problems paying off a general obligation bond the city sold in 1997 to fund a new trash burner. The situation [...]
Municipal Finance: A Market Takes the Plunger
By Paul Springer On Aug. 18, the Securities and Exchange Commission settled a municipal suit against the State of New Jersey. It appears to be the first time the commission took on an entire state, at least in a matter involving muni investors. It’s worth wondering what revelations lie in store for California, which in terms [...]
Tactical Perspective Sept. 7th: Fixed Income
We continue to hold a small tactical short position in 10 Year Treasury Note futures with a stop just above 125’00. On one hand, recent price action is the first serious challenge to the long trendline (extending to the April lows), and could be the very beginning of a larger trend change. We have a [...]
Tactical Perspective, Fixed Income: Aug 18
We are monitoring interest rates at various points along the curve, and are showing the weekly chart of 10 Year Treasury Note Futures to highlight the recent strength in bond prices. Clearly a primary driver of market action at these levels is speculation on the Fed’s purchase program. From a pure tactical perspective, there is nothing [...]
