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US Treasuries Are "Riskier" Than Italian And Spanish Bonds
In the equity asset management world, the word risk is ubiquitously interchangeable with the word "volatility" for myriad asset allocation models that promise mathematical precision way beyond the realms of possibility in a dynamic world. However, extending that definition of risk, we thought it worth pointing out that, for the last month, US Treasury bonds have become more volatile (more risky) than Italian and Spanish bonds. Something to ponder for The Fed's new head we suspect...
The 3 month volatility of US Treasuries is now higher than that of Spain and Italy (both of which offer significantly higher yields than the US)...
One can only imagine the automated overweighting that a lower risk, higher return implies for the peripheral European bond markets... but for all those MPT asset allocators out there, when all you have is hammer...
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Time to sell vol
Another amateur ZH post. Risk is proportional to yield, and treasuries have much lower yields than italian and spanish bonds. It's sad that doomer day traders read these articles and believe they are learning real economics. For those of you who want the truth, I suggest you read some Krugman, Stiglitz or Mankiw.
http://accredited-times.com/2013/10/08/why-unions-are-the-champions-of-american-freedom/
Wednesday morning humor...
Life would be boring without MDB & Krugman.
DB you had me at Paul Krugman ... few know he is a member of the Group of 30 of BIS
http://www.group30.org/members.shtml
UST chosen "sexiest bond alive" by Esquire in 2012
http://en.wikipedia.org/wiki/Sexiest_Woman_Alive#Sexiest_Woman_Alive
and now you have to go and spoil it all
http://netdna.celebritytoob.com/wp-content/uploads/2013/04/Celebrities_W...
MDB.. I’m too busy reading Marx, Lenin, Gramsci and Mao for those lightweight modern treatments.
If you really want to understand todays economics, I suggest you read an essential work on freedom by socialist Paul Lafargue (son-in-law of Marx, 1842-1911), “ The Right To Be Lazy” (1883)
You really need to get to the epistemological sources of modern economics order to understand these latter day authorities.
Textbooks: US Treasuries represent the risk free rate.
Reality: US Treasuries represent the rate free risk!
somebody edited the entry
http://en.wikipedia.org/w/index.php?title=Esquire_(magazine)&oldid=576154583
HORY SHET!
dublicate
DB, If your not living with you mom already, you will be soon
Risk is proportional to yield?! Fuck me, all this time I've been learning the capital asset pricing model. Your formula is sooooo much easier! Thanks!
Krugman, hehe, that was hilarious
How about you get back to me once you learn what volatility is, til then, you're an idiot.
Hee HEE HA haw! Howl! Oh Wow! Thanks for the best laugh I've had in at least a week. Your a really great guy for providing this short but incredibly funny humor! Thanks!!!
Of course they offer higher yields when we get a constant flow of "G-d's Chosen" that run the interest rates down. Why bother?
Is there anything the Keynesians can't do?
Stop bailing.
Time to LOAD SPANISH AND ITALIAN VOLATILITY
Thanks Bernanke. Someone can start putting Bernanke's name on the Ace of Clubs. The Ace of Spades is already taken.
I'd rather Grouponzi or Facebook stock versus UST or USD.
Oh, and get fucked Yellen.
Can we have a "whatever it takes" from mr. Yellen?
Risk...LOL the Bernank has banished risk. There is only manipulation now.
Fed Dog and pony show now to try and get the sheeple back in the herd.
No worries, Jim Cramer just compared Janet Yellen to George Washington.
"She is the best America has to offer!"
Ya' know? Now that Jim has mentioned it, she DOES look a little bit like him!
well, both can trace their roots to a certain Middle-Eastern tribe that never got along with its neighbors, right?
Treasuries risky, bonds under inflation, markets overbought, time to grab some physical dollars. Oh ya there just happens to be another trillion available. Dollar will soar into a collapse real soon, especially with Yellen at the helm.
See we ain’t no banana republic - we’re a Mediterranean republic!
Sweet! When can we expect an IMF rescue package?
SDR's, SDR's... get your printed out of thin air SDR's here!
http://youtu.be/szwclmmKwLg the new face of the EZ Janet FED and the US Dollar....
But Porzine did that with $ 6 bILLION of long italian bonds, in a swap;
the EZ FED made me do it!!!!! EZ Janet here to stay,
bonds bonds, run run run away. Inflation here to stay.
lets print it all another 4 trillion on the balance sheet, EZ Janet,
Do it for the Children....
How the dialogue and perspective changes; from Greece we go to Washington as the most corrupt of the crony capitalist crowd.
Read this for a laff :
Krugtron The Invincible - Business Insider
Battle of the professorial dinosaurs of Academia on oppsite sides of the aisle.
Wait a minute... Cant the treasury selectivily default on debt owned by just the Fed (if it isnt doing that by some mechanism already ) ?
And if yes- isnt that a big plus for the (ratings of the) treasuries that are left undefaulted ?
What are the BBG Codes to get the Vol charts for those govis ?
MDB is an alt for Paul Krugman. All these "print more whores" lovingly service and satisfy their bankster masters.