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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 | 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.

Fri, 04/26/2013 - 12:07 | 3502695 Inthemix96
Inthemix96's picture

The roadsides around here stooge mate,

Are shit.

Pass it on.        ;-)

Fri, 04/26/2013 - 12:24 | 3502768 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 | 3512837 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 | 3502502 SheepDog-One
SheepDog-One's picture

Muh muh muh, muh muh BRAIN is FRIED'!

Fri, 04/26/2013 - 11:29 | 3502505 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 | 3502625 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 | 3502512 StarTedStackin'
StarTedStackin''s picture

is nawt niiiiiiiice to saaaaay retarrrrrrdead.....

Fri, 04/26/2013 - 11:42 | 3502562 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 | 3502700 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 | 3503164 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 | 3502515 orangedrinkandchips
orangedrinkandchips's picture

FRANKS AND BEANS!

Fri, 04/26/2013 - 11:33 | 3502518 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 | 3502555 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 | 3503541 Thisson
Thisson's picture

I am Simple Jack's complete lack of surprise.

Tue, 04/30/2013 - 01:12 | 3512847 MeelionDollerBogus
MeelionDollerBogus's picture

+100 !!!

Fri, 04/26/2013 - 11:31 | 3502519 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 | 3502524 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 | 3502541 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 | 3502543 sansnobel
sansnobel's picture

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

Fri, 04/26/2013 - 11:44 | 3502567 Yellowhoard
Yellowhoard's picture

By selling more bonds.

This isn't rocket science.

Fri, 04/26/2013 - 11:50 | 3502589 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 | 3502693 Yellowhoard
Yellowhoard's picture

It's called check kiting.

All the cool kids are doing it.

Fri, 04/26/2013 - 11:39 | 3502548 magpie
magpie's picture

whatever crackhead

so vip is down

Fri, 04/26/2013 - 11:42 | 3502550 sudzee
sudzee's picture

The whole world is going Gideon Gono.

Fri, 04/26/2013 - 11:40 | 3502552 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 | 3502556 syntaxterror
syntaxterror's picture

Bill Gross is down for at least $2 billion.

Fri, 04/26/2013 - 11:52 | 3502602 W T F II
W T F II's picture

Gross KNOWS Diversification...!!

Fri, 04/26/2013 - 11:48 | 3502578 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 | 3502688 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 | 3502592 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 | 3502593 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 | 3502606 Falconsixone
Falconsixone's picture

Que the Rothschild.

Fri, 04/26/2013 - 11:53 | 3502607 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 | 3502619 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 | 3502643 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 | 3502705 ross81
ross81's picture

Tyler mumumumumumumu makes me happy

Fri, 04/26/2013 - 12:16 | 3502727 Son of Loki
Son of Loki's picture

Tme to get out of Bonds.....

Fri, 04/26/2013 - 12:17 | 3502747 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 | 3502753 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 | 3503158 syntaxterror
syntaxterror's picture

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

Fri, 04/26/2013 - 12:33 | 3502800 Yen Cross
Yen Cross's picture

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

Tue, 04/30/2013 - 01:13 | 3512849 MeelionDollerBogus
MeelionDollerBogus's picture

Cypriot! For the muthafuckin WIN

Fri, 04/26/2013 - 12:57 | 3502925 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 | 3502985 silverserfer
silverserfer's picture

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

Fri, 04/26/2013 - 13:05 | 3502996 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 | 3503054 Goggles Pisano
Goggles Pisano's picture

Is that Ben Stiller?

Fri, 04/26/2013 - 13:49 | 3503144 akak
akak's picture

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

Tue, 04/30/2013 - 01:14 | 3512850 MeelionDollerBogus
MeelionDollerBogus's picture

It is, doing an impersonation of MDB and Pud

Fri, 04/26/2013 - 13:27 | 3503087 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 | 3503139 slackrabbit
slackrabbit's picture

Aaaaannnndddd its gone!

Fri, 04/26/2013 - 13:44 | 3503142 ILikeBoats
ILikeBoats's picture

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

Fri, 04/26/2013 - 13:51 | 3503165 syntaxterror
syntaxterror's picture

Hopefully Goldman is doing God's work in Rwanda.

Fri, 04/26/2013 - 13:53 | 3503180 Bunga Bunga
Bunga Bunga's picture

but but but you get 7% on the Dollaaah

Fri, 04/26/2013 - 14:05 | 3503231 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 | 3503584 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!