Tag Archives: bond

Bond traders uncover secret to interest rates that the Fed just doesn’t seem to get

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Forget 2015. The real play for bond traders is 2016. For years, the $12.6 trillion U.S. Treasury market has signaled — correctly — the Federal Reserve was too optimistic in the outlook for that economy and interest rates. As Janet Yellen leaves options open, Stephen Poloz might be forced to make tough decision on rates Joe Chidley: How the Fed ...

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Why bond ETFs have little to fear from a market collapse

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Mark Wiedman believes the corporate bond marketplace is facing big problems when interest rates start to rise, however the global head of BlackRock Inc. iShares isn\’t overly concerned about the impact that may have on his firm\’s lineup of fixed-income exchange-traded funds. To the contrary, Wiedman sees no reason to believe that ETFs is going to be any less resilient ...

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Worst bond crash in almost 30 years is early warning of turmoil to come

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The global deflation trade is unwinding with a vengeance. Yields on 10-year Bunds blew through 1 percent this week, spearheading a violent repricing of credit across the world\’s economic climate. The scale is beginning to match the “taper tantrum” of mid-2013, when the US Federal Reserve issued its first gentle warning that quantitative easing wouldn\’t last forever, which the long-feared ...

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Will a Fed hike trigger a bond meltdown this fall?

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A new report from Citigroup warns it does not matter how the U.S. Federal Reserve raises interest rates this year, it\’ll result in bond market panic. Bond yields always have a tendency to rise in response to rate hikes by central banks, but the bond market today is much different than during past rate hikes, Citi said. In particular, liquidity ...

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Where to find yield as bond proxies weaken

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Since the primary trend in bond yields has been down since 2009, defensive yield stocks such as pipelines, utilities, REITs and telecoms have were able to outperform the broader market. These so-called bond proxies have risen 125 per cent since the market’s 2009 lows, versus a gain of 95 percent by the S&P/TSX composite index. But with bond yields rebounding ...

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Where to find better bond yields

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Canadian bond investors have a tendency to follow the rhetoric they hear out of the U.S. – and even for good reason. The U.S. Federal Reserve’s near-zero rate of interest policy remains the primary driver of fixed-income markets in Canada in addition to around the globe. The U.S. central bank’s ultra-loose monetary policy and expectations for any healthy economic rebound ...

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