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.


Well, it finally happened

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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.

Doyle Hargraves's picture

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

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.

YuropeanImbecille's picture

Simple Jack was a genious and prodigy working wall street!


Too bad the asians took him from us 

The Ram's picture

We could say this about the entire global financial system.

francis_sawyer's picture

...aaaaand it's GHAN(a)

Dr. Engali's picture

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

Mojeaux18's picture

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

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.

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...

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.

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.


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...

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.

YHC-FTSE's picture

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

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.

NotApplicable's picture

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

NotAMathWhiz's picture

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

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. 

useless_fact's picture

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

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.

writingsonthewall's picture

Well run?

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

StarTedStackin''s picture

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

NotApplicable's picture

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

TheFourthStooge-ing's picture

"Relatively well run"

In this instance, the matteringest thing is the adjective.

czarangelus's picture

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

astoriajoe's picture

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

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)

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"

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?

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?

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.