Bond

Peak Economic Delusion Signals Coming Crisis

"The question is not “when” we will enter collapse; we are already in the midst of an economic collapse. The real question is, when will the uneducated and the biased finally notice? I suspect the only thing that will shock them out of their stupor will be a swift stock market drop, since this is the only factor they seem to pay attention to. This will happen soon enough."

A New Chinese Threat Emerges: Net Bond Issuance Crashes Most On Record

China just suffered a record collapse in net corporate bond financing, the latest and far more "tangible" threat to China's debt-fuelled economy. In May a quarter trillion yuan in corporate bonds matured, or were repaid, or defaulted, resulting in the biggest corporate debt drain in history.

Reflexivity And Why The Fed Must Sell The Long End

"If the Fed were to just let its balance sheet 'run off', it would cause additional pressure on short-term interest rates even as policy rates are rising. It could also potentially invert or further distort the front-end of the yield curve and destabilize the money markets... It would, therefore, behoove the Fed to sell some of its longer dated Treasury holdings to steepen the yield curve."

When Will Janet Live Up To Her Reputation?

"The bond market is speaking, but most aren’t listening. It is telling us that Yellen is tightening too quickly. Or at least, she is by no means anywhere near as easy as the popular narrative."

China Says "Don't Panic" As Yield Curve Inversion Deepens Amid Liquidity Collapse

The curious case of the inverted yield curve in China's $1.7 trillion bond market is worsening as an odd combination of seasonally tight funding conditions and economic pessimism create concerns among investors. However, on Sunday, the official Xinhua News Agency sought to stabilize markets expectations. “Don’t panic,” it urged investors.

A Record Number Of Market Participants Says The Market Is Overvalued, Surpassing 1999 Bubble Highs

The latest monthly Fund Managers (FMS) survey from Bank of America is out, and continuing the trend noted in previous months when the number of active managers who said that stocks are overvalued hit the highest in nearly two decades, the latest version reveals that the number of respondents saying that equities are overvalued has just hit a record high, surpassing the all time high set during the 1999 bubble.

Bill Gross: "All Markets Are Increasingly At Risk"

"You have the potential for low asset returns in which the now successful strategy of “making money with money” is seriously threatened. How soon this takes place is of course the investor’s dilemma, and the policymakers’ conundrum. But don’t be mesmerized by the blue skies created by central bank QE and near perpetually low interest rates. All markets are increasingly at risk."