When A 10-Year Treasury Yield Just Isn’t Enough

In a world of abnormally low interest rates, the search for yield has become a priority for many investors. The good news is that there are several opportunities for boosting your investment income relative to the usual suspects. The bad news is that higher yield tends to come with higher risk. That’s nothing new, of […]

A Few Notes on FX

The US dollar is trading heavily after yesterday’s mini-reversal, with a stronger than expected UK GDP report allowing sterling to lead the charge. The UK reported a 1% rise in Q3 GDP over Q4.  The consensus was for 0.6%-0.7% expansion after three quarters of contraction. The news, coupled with recent comments from BoE’s King, have dampened […]

Greece and Spain

European officials ability to reduce the tail risks appears to have been quite successful. And they have achieved this without spending a single penny. Yet the tension between the interests of the creditors and the interests of the debtors has not been resolved. This is clear the case in Greece. Officials, including senior German officials […]

Turner Is for Turning

Lord Adair Turner, chairman of the Financial Services Authority and candidate for the Bank of England governorship, has done a mea culpa on his earlier advocacy of euro membership for Britain. In a speech at the Mansion House, he said: “Ten years ago I argued in favour of the Eurozone project and for Britain’s eventual […]

Mr. Global Economy – Health Check

As requested, I have undertaken an extensive examination of Mr. Global Economy, both physical and psychological. Patient History… The patient’s history includes a seizure in 2007/ 2008 –financial losses, banking problems, a major recession etc. Liberal injections of tax payer cash avoided catastrophic multiple organ failure assisting a modest recovery. Governments ran large budget deficits in […]

Arguing for QEx . . .

Zero Interest Rate Policy (ZIRP) and Quantitative Easing (QEx) have been blamed for everything from the coming dollar apocalypse to imminent hyperinflation to troubles in the Middle East. I’ve spilled too many words on why Fed intervention is yet another backdoor bailout for banks’ ravaged balance sheets; propping up residential real estate merely delays the inevitable […]

Is the Fed Buying Up All the Treasury Debt?

No, according to the data provided by SIFMA.  The Fed actually holds a relatively small share of total marketable treasury securities:     The other big holders include foreigners, households, mutual funds, banks, and pensions.  So don’t blame the Fed for the low yields on Treasuries. This post was originally published at Macro and Other Market Musings and is […]

Review of Major Asset Classes, September 2012

The capital and commodity markets in general enter the third quarter on a strong note. Nearly all of the major asset classes posted gains in September and everything is comfortably in the black for the year through the end of the third quarter. Looking backward suggests that all’s well. But rearview mirrors can be misleading […]

1 3 4 5 6 7 16