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All The World's Debt (And Yield)
Define irony: a world in which the past 7 years have been characterized by an unprecedented "search for yield." Well, now that junk debt is finally dumping, and yields are suging (over 8% blended average at last check) virtually nobody wants any of this so highly yielding junk.
The good news is that out of the approximately $35 trillion in US, European And British debt (excluding Japan and China) there is still about $34 trillion in low yield assets which investors can rush into. Perhaps the question then is not when does junk normalize, but how long before first IG and then Govts suffer the same fate as junk bonds have over the past few weeks.
Source: Goldman
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On occasion, ZERO yields are OK.
But, not for long. Yellen & Co. will ensure that inflation comes soon enough.
Upon inspection, an interesting chart.
You don't need yields if the stock price is constantly levitated. Too bad that gravity always wins in the end......
This chart clearly shows that USA #1!
Obama took the challenge seriously and won easily.
But it helps to have a rubber-stamp/blank-check Congress.
#DividedGovtIsAHoax
n/m
I love this graph. Just looking at it makes my day
did my old eyes just spot a "EUR sub-sov" category? lol
High yielding junk .... high yeller president ?
couldn't possibly be any higher https://www.youtube.com/watch?v=DMO_67C1cGs
years?
Gold yields storage and insurance issues .... and declining value .... buy low .... spend then ?
The US is #1 in producing debt and not too much else.
From producing real products to printing money, creating wealfare and debt.
We see what happened to Europe.
Remember those bonds you wanted yesterday but you said +200 basis points was too tight? I can offer today at +300. Interested?
Nope.
8% junk yield is WAY TOO LOW! Only people using other's money touch that smoldering shit
After rotting for years the crap is starting to stink. More Fed perfume isn't going to help it.
Mr. Mellon had only one formula: ‘Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate’.He held that even panic was not altogether a bad thing. He said: ‘It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people’
Why buy junk? Especially since any yield would be negated by currency inflation.
Seriously, any old hands on ZH care to explain how to trade this mess?
ZIRP aint workin' lets try NIRP...after that PERP (as in "walk" i hope)
When will BIS yield to China's CIPS or Russia's RIPS, or whatever they call their version?