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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 | Link to Comment I Am Not a Copp...
I Am Not a Copper Top's picture

Never go full retard

Fri, 04/26/2013 - 11:26 | Link to Comment CURWAR2012
CURWAR2012's picture

or full postal

Fri, 04/26/2013 - 11:31 | Link to Comment bania
bania's picture

Return free risk, African style!

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

wake the fuck up, mr hophop!

Fri, 04/26/2013 - 12:12 | Link to Comment GOSPLAN HERO
Fri, 04/26/2013 - 12:17 | Link to Comment Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

"And we can eat icecream in heaven!"

Fri, 04/26/2013 - 13:10 | Link to Comment derek_vineyard
derek_vineyard's picture

and cats can fly

Fri, 04/26/2013 - 15:57 | Link to Comment ThalesOfMiletus
ThalesOfMiletus's picture

...if you throw them hard enough.

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

TIA Bru

Fri, 04/26/2013 - 11:47 | Link to Comment Frastric
Frastric's picture

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

 

Fri, 04/26/2013 - 11:30 | Link to Comment FL_Conservative
FL_Conservative's picture

If you got 'em, smoke 'em.

Fri, 04/26/2013 - 12:06 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Doyle Hargraves
Doyle Hargraves's picture

That explains it a bit more...

Fri, 04/26/2013 - 11:24 | Link to Comment 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 | Link to Comment Colonel Klink
Colonel Klink's picture

No we still have him....

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

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

We could say this about the entire global financial system.

Fri, 04/26/2013 - 11:24 | Link to Comment francis_sawyer
francis_sawyer's picture

...aaaaand it's GHAN(a)

Fri, 04/26/2013 - 11:24 | Link to Comment 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 | Link to Comment Mojeaux18
Mojeaux18's picture

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

Fri, 04/26/2013 - 11:58 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment Dr. Engali
Dr. Engali's picture

Call 1-800-ass-hole

Tue, 04/30/2013 - 01:10 | Link to Comment MeelionDollerBogus
Fri, 04/26/2013 - 11:42 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment YHC-FTSE
YHC-FTSE's picture

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

Fri, 04/26/2013 - 13:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 1000 splendid suns
1000 splendid suns's picture

Bond, Bubble Bond.

Fri, 04/26/2013 - 11:26 | Link to Comment 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 | Link to Comment writingsonthewall
writingsonthewall's picture

Well run?

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

Fri, 04/26/2013 - 11:33 | Link to Comment StarTedStackin'
StarTedStackin''s picture

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

Fri, 04/26/2013 - 11:52 | Link to Comment 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 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

"Relatively well run"

In this instance, the matteringest thing is the adjective.

Fri, 04/26/2013 - 11:27 | Link to Comment czarangelus
czarangelus's picture

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

Fri, 04/26/2013 - 11:32 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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.

Fri, 04/26/2013 - 12:07 | Link to Comment Inthemix96
Inthemix96's picture

The roadsides around here stooge mate,

Are shit.

Pass it on.        ;-)

Fri, 04/26/2013 - 12:24 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Ah, that aspectation uniformously laudates benefitial potiental definitively. Could be best part, crustiest bit.

Tue, 04/30/2013 - 01:12 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

A road that goes nowhere? Wow, sounds like a good place to play kick-the-can. I’m in!! – Bernanke & Abe

Fri, 04/26/2013 - 11:28 | Link to Comment SheepDog-One
SheepDog-One's picture

Muh muh muh, muh muh BRAIN is FRIED'!

Fri, 04/26/2013 - 11:29 | Link to Comment writingsonthewall
writingsonthewall's picture

You want ot lend to Rwanda - please, be my guest.

You wanted to lend to Iceland - and look how that worked out.

Maybe the yield chasers need to learn that rates reflect risk - and that the risk for ALL sovereign debt is high at the moment - even if the rates are being held artificially low.

So why no complaints about bailing out bondholders - like they bailed out the banks?

Is it because the bondholders are pensioners and have more time on their hands to vote and write their opinions to papers?

Fri, 04/26/2013 - 11:53 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

So why no complaints about bailing out bondholders - like they bailed out the banks?

 

ummm...."They" bailed out the deadbeat depositors who made unsecured loans to "the banks"*

 

*above FDIC insured limits...take a look around your city or town and try to appreciate exactly how many businesses should be bankrupt.. Those crafty homeowner terrorists almost wrecked this country.

 

hilarious.

Fri, 04/26/2013 - 11:33 | Link to Comment StarTedStackin'
StarTedStackin''s picture

is nawt niiiiiiiice to saaaaay retarrrrrrdead.....

Fri, 04/26/2013 - 11:42 | Link to Comment adr
adr's picture

You don't want to make fun of the retarded. You know they have the strength of a chimpanzee, which is like the strength of ten men.

Fri, 04/26/2013 - 12:06 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Beware the retard that thinks he's a chimpanzee. They have the strength of ten retards, mathematically equivalent to the strength of a retarded chimpanzee.

Fri, 04/26/2013 - 13:50 | Link to Comment akak
akak's picture

I know my mercury-spewing, rainforest-clearing, child slave-exploiting gold mining operations could use a few of those.

Fri, 04/26/2013 - 11:31 | Link to Comment orangedrinkandchips
orangedrinkandchips's picture

FRANKS AND BEANS!

Fri, 04/26/2013 - 11:33 | Link to Comment Zen Bernanke
Zen Bernanke's picture

"Simple jack" is a term that can aptly be used to describe a great many things and imho, is not used often enough.   In fact, I think I'm going to start using SIMPLE JACK as a verb, because some politically correct douchebags might be offended if I call them a full retard. 

Fri, 04/26/2013 - 11:40 | Link to Comment adr
adr's picture

I've already tried using that. The funny thing is there are a lot of people that get that reference.

I said, "We won't get anything done with Simple Jack over there." about a co-worker. He said, "Don't call me a fucking retard man."

Fri, 04/26/2013 - 15:20 | Link to Comment Thisson
Thisson's picture

I am Simple Jack's complete lack of surprise.

Tue, 04/30/2013 - 01:12 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

+100 !!!

Fri, 04/26/2013 - 11:31 | Link to Comment Winston Churchill
Winston Churchill's picture

I'm confused Tyler.

I thought Uganda was the better bet,or was that just in comparison to Spain.

What Zimbabwe bond paying now ?

Fri, 04/26/2013 - 11:34 | Link to Comment Bourbonite
Bourbonite's picture

Hope Ben is watching dummy bear on YouTube as he might get ideas from this post and buy several small African countries every week to balance his books with some black.

Fri, 04/26/2013 - 11:40 | Link to Comment adr
adr's picture

Can we just start our own countries and start selling bonds? Like when Peter started Petopia on Family Guy.

Meanwhile they tried to give away a Ferrari on The Price is Right.

http://www.youtube.com/watch?feature=player_embedded&v=H-qZitnZ5IY

The contestant looked to be a very nice Obama voter. I wonder if she would have been granted an exception to the $38k tax bill if she won the car? Does Progressive take EBT for insurance payments?

STEP RIGHT UP EVERYONE!!!!

ARE YOU NOT ENTERTAINED!!!!!

Fri, 04/26/2013 - 11:39 | Link to Comment sansnobel
sansnobel's picture

So where do the dollars come from to service these bonds?  Oil reserves?

Fri, 04/26/2013 - 11:44 | Link to Comment Yellowhoard
Yellowhoard's picture

By selling more bonds.

This isn't rocket science.

Fri, 04/26/2013 - 11:50 | Link to Comment sansnobel
sansnobel's picture

Nice so it pays to be Government I guess.  Issue Debt in whatever currency you like huh?  This world is so beyond fucked!  I guess I should transfer my net worth to someone else and take out as much debt as I can and just play the game like everybody else.  Take out a new credit card every other month and roll my debt over with some new fresh debt.  Declare personal bankruptcy....rinse and repeat

Fri, 04/26/2013 - 12:07 | Link to Comment Yellowhoard
Yellowhoard's picture

It's called check kiting.

All the cool kids are doing it.

Fri, 04/26/2013 - 11:39 | Link to Comment magpie
magpie's picture

whatever crackhead

so vip is down

Fri, 04/26/2013 - 11:42 | Link to Comment sudzee
sudzee's picture

The whole world is going Gideon Gono.

Fri, 04/26/2013 - 11:40 | Link to Comment geewhiz190
geewhiz190's picture

you can buy EMB,  owns bonds from Iraq , Serbia, ivory Coast to name a few.  pays 4.2%.  sponsored by JP Morgan-what's not to like?

Fri, 04/26/2013 - 11:43 | Link to Comment syntaxterror
syntaxterror's picture

Bill Gross is down for at least $2 billion.

Fri, 04/26/2013 - 11:52 | Link to Comment W T F II
W T F II's picture

Gross KNOWS Diversification...!!

Fri, 04/26/2013 - 11:48 | Link to Comment bagehot99
bagehot99's picture

7%? What's the money going to be used for?

Building a palace? Probably a bad bet.

Drilling for oil? Probably not a bad bet.

Fri, 04/26/2013 - 12:03 | Link to Comment Urban Redneck
Urban Redneck's picture

- in Ghana:

Roads, Hospitals, erosion protection, Airports, all those shovel-ready things US taxpayers try so hard to "invest" in, campaign promises are expensive in any culture...

The Oil & Gold are self-financing

The over-the top Presidential Palace is several administrations and old, and was used as the French embassy (among other things), until the current administration decided they better use it or lose it.

Fri, 04/26/2013 - 11:51 | Link to Comment W T F II
W T F II's picture

Talk to me when Zimbabwe does @ 6.95%. Then I'll be impressed...!!

Fri, 04/26/2013 - 11:51 | Link to Comment Jason T
Jason T's picture

when the Euro crashes and the dollar soars, those loans are doomed .. tis the next crisis I believe. A soaring dollar.

Fri, 04/26/2013 - 11:50 | Link to Comment Falconsixone
Falconsixone's picture

Que the Rothschild.

Fri, 04/26/2013 - 11:53 | Link to Comment Bourbonite
Bourbonite's picture

30% is marked for new S classes, 40% for London property, 10% for bling, leaving 20% for new paved roads from the presidential palace to the fried chicken and watermelon shop . Decent value for money I'd say.

Fri, 04/26/2013 - 11:52 | Link to Comment Bingfa
Bingfa's picture

California, When gun confisation starts...Don't open the door...

http://freedomoutpost.com/2013/04/california-when-gun-confiscation-start...

"So what do you do if one of these gun grabbers shows up at your door? Tell them to wait outside while you call your attorney. Or tell them to come back when they can produce a warrant. This goes far beyond the 2nd Amendment. It may loosely relate to the 5th Amendment but as already discussed the 4th Amendment is definitely in play."

Fri, 04/26/2013 - 11:56 | Link to Comment Catullus
Catullus's picture

Thatta boy. They're going to end up monetizing everything anyway. Might as well get yours

Fri, 04/26/2013 - 12:08 | Link to Comment ross81
ross81's picture

Tyler mumumumumumumu makes me happy

Fri, 04/26/2013 - 12:16 | Link to Comment Son of Loki
Son of Loki's picture

Tme to get out of Bonds.....

Fri, 04/26/2013 - 12:17 | Link to Comment autofixer
autofixer's picture

No, no, it is full throttle not full retard youv'e got it all wrong!  QE, QE, QE!

Fri, 04/26/2013 - 12:21 | Link to Comment Flounder
Flounder's picture

So if I put 7% Rwanda and Ghanaian paper in my 401k I'm set for retirement.  Sweet.

Fri, 04/26/2013 - 13:47 | Link to Comment syntaxterror
syntaxterror's picture

Don't forgot to lever at 30-to-1 so the 7% becomes 200+%!

Fri, 04/26/2013 - 12:33 | Link to Comment Yen Cross
Yen Cross's picture

      Are the bonds going to be issued under Greek law/subordination? lol

Tue, 04/30/2013 - 01:13 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

Cypriot! For the muthafuckin WIN

Fri, 04/26/2013 - 12:57 | Link to Comment realitybiter
realitybiter's picture

The banks must be tied to a tree and taken off their addiction to bonds (free money)

Ignore them if the promise to "swallow the gravy" - give you returns.

 

The banks, central and otherwise, must be restrained and ignored.

Fri, 04/26/2013 - 13:05 | Link to Comment silverserfer
silverserfer's picture

ill rememmber you in my head movies. but this movie, makes my eyes rain.

Fri, 04/26/2013 - 13:05 | Link to Comment gaoptimize
gaoptimize's picture

As the father of a sweet little boy with Down Sydrome, I am very gratified that the proteins linked to brain development and function have been identified.

http://www.nytimes.com/2013/04/09/science/protein-in-alzheimers-linked-to-down-syndrome.html?_r=0

Usually this means pharma treatment is ~5 to 7 years away.  But I still hope the proteins associated with sociopathy will be identified and a cure will be found for the growing number of people that need a cure for that.  We all could use a cure of one kind or another I suppose, and I hope we receive it as the Singularity approaches.

Fri, 04/26/2013 - 13:20 | Link to Comment Goggles Pisano
Goggles Pisano's picture

Is that Ben Stiller?

Fri, 04/26/2013 - 13:49 | Link to Comment akak
akak's picture

I think it's PUD, standing next to his pet horse, Runfromthegold.

Tue, 04/30/2013 - 01:14 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

It is, doing an impersonation of MDB and Pud

Fri, 04/26/2013 - 13:27 | Link to Comment Pairadimes
Pairadimes's picture

The only proper advice on this transaction:

 

"Are you absolutely sure you want to buy dollar-denominated Ghana bonds?"

"Yes, please."

<click-click> BOOM!

"Next."

Fri, 04/26/2013 - 13:44 | Link to Comment slackrabbit
slackrabbit's picture

Aaaaannnndddd its gone!

Fri, 04/26/2013 - 13:44 | Link to Comment ILikeBoats
ILikeBoats's picture

Cue the posts on Rwandan citizenism that doth blubble-up...

Fri, 04/26/2013 - 13:51 | Link to Comment syntaxterror
syntaxterror's picture

Hopefully Goldman is doing God's work in Rwanda.

Fri, 04/26/2013 - 13:53 | Link to Comment Bunga Bunga
Bunga Bunga's picture

but but but you get 7% on the Dollaaah

Fri, 04/26/2013 - 14:05 | Link to Comment Fuku Ben
Fuku Ben's picture

Another reason to love ZH

Headlines still include the use of words resigned to the PC tyranny sub-basement

One small victory for freedom of speech

One full retard for mankind

Fri, 04/26/2013 - 15:34 | Link to Comment Klazy Plick
Klazy Plick's picture

M-O-O-N spells moon.

Do NOT follow this link or you will be banned from the site!