bonds

Economic policy has become more important than ever in the investment world. And the degree of policy uncertainty only increases as bailout and deficit fatigue battle it out with liquidity uber alles and financial repression as the policy…

So, our friends, a few questions. Which rates are the result of financial repression, capital flows, and/or stellar credit risk? And what is the best carry trade, assuming you can borrow close to the sovereign?

Here is a chart of the relative performance of various asset classes over the past year. One asset class outperforms the others… by a wide margin.

This is excerpted from the American Presidency Project at UCSB. Hoover writes the following letter to George L. Harrison, Federal Reserve Board of New York, on financial and economic problems on 5 Oct 1931

The adoption of the Constitution of the Kingdom of Denmark Act in 1849 provided the first regulatory framework and Danish mortgage financing has ever since been tightly regulated, ensuring an entirely unblemished track record with not a…

If real returns remain low, it will skew capital investment. When recession hits, debtors backing those losing investments will be caught out and forced to delever aggressively as resource misallocation becomes evident.

Reports that hedge funds, with almost no tolerance for short-term pain, have opened the biggest net short positions since early 2008 has driven a relatively low volume short covering rally. We even heard predictions of a 400 point drop…

The Greeks are starting to play hardball on their private sector debt swap warning the deal could crater if the 90 percent participation is not met. We think there are other reasons why it is trouble.

Capital preservation has once again has become mantra. The safety offered by Japan and Switzerland are meeting resistance from policy makers. As the market looks for alternatives, the Swedish krona has much to offer, including a relatively…

The Italian debt markets are a lot calmer this week than they were the week before last because the level of Italian bond yields is now more or less completely guaranteed by the European Central Bank (the ECB). However, Italy’s problem is…