Tag Archives: bonds

[T]his disparate level of penalties between the exchange (stiff penalty) and repo (basically no penalty) is precisely the play Deutsche Bank AG did in their Bobl squeeze in March 2001. They simply didn’t return the bonds they had reverse repoed … Continue reading

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The last decade’s debt record for several rich countries. 3-month Bond Yields owed by some of them:      (SOURCE: Bloomberg) Japan .10% UK .41% Germany .28% US .04% And here’s one of the yield curves (US’):   (Remember, higher … Continue reading

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So is it going to happen again? Another crippling financial maelstrom, I mean. I guess we haven’t yet reached the period of complacency that was said would follow the “subprime crisis” or the “financial mess” or whatever you want to … Continue reading

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Flight to Quality

Every time I hear that bond investors are flocking to quality, and that quality = lending to the U.S. government, I think the following: what’s so high quality about U.S. government debt? is this really just because business schools use … Continue reading

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