Thursday, August 17, 2017

Bonds, balance sheet recentions and bail outs


https://www.ft.com/content/86e1e87e-81ed-11e7-a4ce-15b2513cb3ff

"banks’ response to the financial crisis turned the normal rules of the bond market upside down. Bondholders typically expect to be paid interest to make up for the risk they might not be paid back. Yet trillions of dollars of debt is trading at prices so high that the yield is negative; buyers of the bonds who hold them to maturity are guaranteed to lose money."

Oh dear what with this and the post i made on nomura - http://nickhorslen.blogspot.co.uk/search?q=nomura you do have to wonder who is in the know and who is on the make. The EU and the european bonds are a ticking time bomb, thinks in a large part to the euro as much as the GFC.

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