Bond Bubble Goes Full Retard

Tyler Durden's picture




 

Last week it was Rwanda issuing USD-denominated debt at 7% (lower than Spain yields less than a year ago) just as bond yields of 90% of global sovereign bonds are at or near all time lows. And now, moments ago, we just learned that Ghana (nominal 2013 GDP: $42.8 billion) has just upsized its dollar-denominated $750MM bond issue to $1 billion.

We can only assume that this is due to unprecedented demand for yield. Any yield.

From Bloomberg:

Ghana is inviting bids for advisers on transaction, according to information from two people with knowledge of the plans, who asked not to be identified because details aren’t yet public.

 

Govt plans to sell debt by end of yr: Albert Kofi Asamoa-Baah, an adviser at finance ministry, says by phone, declining to comment on size of offering.

:0

Well, it finally happened

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Fri, 04/26/2013 - 11:24 | 3502475 I Am Not a Copp...
I Am Not a Copper Top's picture

Never go full retard

Fri, 04/26/2013 - 11:26 | 3502484 CURWAR2012
CURWAR2012's picture

or full postal

Fri, 04/26/2013 - 11:31 | 3502503 bania
bania's picture

Return free risk, African style!

Fri, 04/26/2013 - 11:54 | 3502611 This just in
This just in's picture

wake the fuck up, mr hophop!

Fri, 04/26/2013 - 12:12 | 3502712 GOSPLAN HERO
Fri, 04/26/2013 - 12:17 | 3502746 Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

"And we can eat icecream in heaven!"

Fri, 04/26/2013 - 13:10 | 3503008 derek_vineyard
derek_vineyard's picture

and cats can fly

Fri, 04/26/2013 - 15:57 | 3503643 ThalesOfMiletus
ThalesOfMiletus's picture

...if you throw them hard enough.

Tue, 04/30/2013 - 01:07 | 3512827 MeelionDollerBogus
Fri, 04/26/2013 - 11:40 | 3502546 cspg
cspg's picture

TIA Bru

Fri, 04/26/2013 - 11:47 | 3502569 Frastric
Frastric's picture

There's only one thing worse than default; government collapse!

 

Fri, 04/26/2013 - 11:30 | 3502508 FL_Conservative
FL_Conservative's picture

If you got 'em, smoke 'em.

Fri, 04/26/2013 - 12:06 | 3502699 CrashisOptimistic
CrashisOptimistic's picture

When there is evidence of no organic growth, like this morning (1T deficit and 1 T printing yielded a lousy 2.5%, which will erode badly in Q2), BOND YIELDS DROP.

This is not rocket science and it has always been thus.  No growth is what deflation is.  Yields drop during deflation because the asset's price rises.

As for Ghana, one word.  Oil.  They have some offshore.

Fri, 04/26/2013 - 12:02 | 3502571 Doyle Hargraves
Doyle Hargraves's picture

Are they the kind of retards that drool and rub shit in their hair?

 

http://www.youtube.com/watch?v=2sBmUszhP_Q

Fri, 04/26/2013 - 12:13 | 3502725 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Are they the kind of retards that drool and rub shit in their hair?

Yes, although in all fairness, they usually limit that behavior to their weekend parties in the Hamptons.

Fri, 04/26/2013 - 12:17 | 3502742 Doyle Hargraves
Doyle Hargraves's picture

That explains it a bit more...

Fri, 04/26/2013 - 11:24 | 3502476 YuropeanImbecille
YuropeanImbecille's picture

Simple Jack was a genious and prodigy working wall street!

 

Too bad the asians took him from us 

Fri, 04/26/2013 - 13:52 | 3503175 Colonel Klink
Colonel Klink's picture

No we still have him....

http://en.wikipedia.org/wiki/Jack_Lew

Fri, 04/26/2013 - 11:25 | 3502478 The Ram
The Ram's picture

We could say this about the entire global financial system.

Fri, 04/26/2013 - 11:24 | 3502486 francis_sawyer
francis_sawyer's picture

...aaaaand it's GHAN(a)

Fri, 04/26/2013 - 11:24 | 3502487 Dr. Engali
Dr. Engali's picture

The world never seems to run out of suckers who want to be parted from their money.

Fri, 04/26/2013 - 11:32 | 3502528 Mojeaux18
Mojeaux18's picture

Yes it does.  They're called dark ages...

Fri, 04/26/2013 - 11:58 | 3502642 I am more equal...
I am more equal than others's picture

Let the plaque begin...

there are enough flea-ridden banker-rats to transmit it around the world seven times.

Fri, 04/26/2013 - 11:58 | 3502644 Urban Redneck
Urban Redneck's picture

The suckers would be at MOFEP (Finance Ministry) if they let GS advise on this deal after the wonderful job those self-dealing kyke thieves did advising Ashanti Gold a decade ago...

Fri, 04/26/2013 - 11:25 | 3502491 JailBank
JailBank's picture

This article is half-assed, because you didn't mention to the interested reader on how to get our hands on bonds.

Fri, 04/26/2013 - 11:35 | 3502532 Dr. Engali
Dr. Engali's picture

Call 1-800-ass-hole

Tue, 04/30/2013 - 01:10 | 3512831 MeelionDollerBogus
Fri, 04/26/2013 - 11:42 | 3502551 pods
pods's picture

You get an email from the guy I think.

Then you call him and send him little bits of cash over time.

Then he sends you the bond.

pods

Fri, 04/26/2013 - 11:47 | 3502583 eatthebanksters
eatthebanksters's picture

He sends you an email teling you he is an attorney handling the estate of a long lost relative and needs money to process the claim which he will gladly invest for you in these bonds...

Fri, 04/26/2013 - 11:48 | 3502594 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

You get an email from the guy I think.

Be sure to have all of your bank account information ready. He's going to need that.

Fri, 04/26/2013 - 11:53 | 3502604 YHC-FTSE
YHC-FTSE's picture

Disclaimer: Must be email from a genuine Ghanaian crown prince. 

Fri, 04/26/2013 - 13:46 | 3503154 TheUnwisestWizard
TheUnwisestWizard's picture

don you think we aren't that far off - the day a crown prince in nigeria or rowanda is a better investment than the US - that day is coming soon... I hear the winters are mild.

Fri, 04/26/2013 - 11:48 | 3502591 NotApplicable
NotApplicable's picture

That's because any "interested reader" should be drinking the Kool-Aid over at Yahoo (or WSJ), not here.

Fri, 04/26/2013 - 11:53 | 3502608 NotAMathWhiz
NotAMathWhiz's picture

Just send him your checking account and social security numbers, he'll take it from there....

Fri, 04/26/2013 - 12:34 | 3502814 Hippocratic Oaf
Hippocratic Oaf's picture

'This article is half-assed, because you didn't mention to the interested reader on how to get our hands on bonds.'

That's because you can't. 

Fri, 04/26/2013 - 11:25 | 3502492 useless_fact
useless_fact's picture

Fleming got the name James Bond from a book on birds. He chose it because of its dullness.

Fri, 04/26/2013 - 11:32 | 3502525 1000 splendid suns
1000 splendid suns's picture

Bond, Bubble Bond.

Fri, 04/26/2013 - 11:26 | 3502494 Mister Ponzi
Mister Ponzi's picture

I would rather buy bonds of the few relatively well-run African countries like Ghana, Botswana or Rwanda than those of ageing, slowly growing (at best) Western countries.

Fri, 04/26/2013 - 11:30 | 3502510 writingsonthewall
writingsonthewall's picture

Well run?

Oh dear - is that what passes for investment analysis these days?

Fri, 04/26/2013 - 11:33 | 3502531 StarTedStackin'
StarTedStackin''s picture

Well run?????? as in better run than the Obowel Movement seems capable of??????

Fri, 04/26/2013 - 11:52 | 3502599 NotApplicable
NotApplicable's picture

It's all about how well one can run the operation of keeping the slaves in line.

Fri, 04/26/2013 - 11:55 | 3502622 TheFourthStooge-ing
TheFourthStooge-ing's picture

"Relatively well run"

In this instance, the matteringest thing is the adjective.

Fri, 04/26/2013 - 11:27 | 3502496 czarangelus
czarangelus's picture

Fuck that; it sounds like a better credit risk than the EUSSR or Amerika.

Fri, 04/26/2013 - 11:32 | 3502526 astoriajoe
astoriajoe's picture

If they are denominated in USD, then wouldn't you have credit risk of both the US and the issuing country?

Fri, 04/26/2013 - 11:51 | 3502612 Urban Redneck
Urban Redneck's picture

The last offering was denominated in Euros, trading 6-7% last time I checked, but they are were issued a country that exports light sweet crude... unlike Greece (or Spain)... and you don't want to near the inftaltion in the local currency (but they actually do disclose it in all its glory, unlike the BLS)

Fri, 04/26/2013 - 11:27 | 3502499 Bam_Man
Bam_Man's picture

With the probability of your 0.05% APY Savings Account being "Cypressed" increasing by the day, government bonds look better and better. Any government's bonds.

"Cleanest dirty shirt"

Tue, 04/30/2013 - 01:10 | 3512834 MeelionDollerBogus
MeelionDollerBogus's picture

This doesn’t make any sense. Government confiscation of bank accounts for debts is bad, yet government debt itself we assume they won’t default on is good? Isn’t it the same shit pile from different photographic vantages?

Fri, 04/26/2013 - 11:30 | 3502501 Inthemix96
Inthemix96's picture

Anyone here interested in this nice road I just bought?

Thought I got a bargain, but after travelling down it, I find out it goes no-where.

Any takers?

Fri, 04/26/2013 - 12:01 | 3502663 TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Anyone here interested in this nice road I just bought?

How are the roadsides? Somehow I think I know of a guy that might be interested.

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