bonds

Once again we are hearing very worried noises from various sectors about the possibility of a reduction in Chinese purchases of USG bonds. Is the PBoC going to stop buying USG bonds?

It is also worth stressing that this solution is far from perfect. We do not live in an ideal world. It is only one possible way of breaking the vicious circle into which the Euro Area countries have now fallen. It is one possible way, and…

Two charts showing the latest trends in markets around the world

The classification of assets according to such dreary concoctions as "mid-cap growth," comparative asset benchmarks is now over.

This article explains why quantitative easing had become the monetary tool of choice for the Federal Reserve and what kind of easing the Fed is now employing. Because the Fed feels constrained politically, it is unlikely to repeat…

In America everyone has been bellyaching about the S&P ratings downgrade like its an affront to the greatness of America. This is absolute rubbish. It’s pure denial and economic nationalism. Do you think the Germans would threaten to…

The Chinese foreign reserve accumulation is really about the exchange rate peg. As long as the Yuan's dollar peg remains near present levels, the current account imbalance will result in an accumulation of dollar reserves. Former Morgan…

With the US downgrade now out of the way, we think market attention will swing back to other Developed Markets countries that are facing downward pressure on ratings too. Here is a summary of our most recent ratings outlooks for Developed…

Below is a pie chart representing the percentage of marketable U.S. treasury securities held by various investor classes as delineated in the latest Federal Reserve flow of funds report.

Here’s my take on the wideners.