Tag Archives: bond

Five charts that explain why the global bond market is melting down


More than US$450 billion has been wiped out across global bond markets in the past few weeks and, for most people, there doesn’t appear to be any particular reason. Boom! Bond market implosion this big only has happened twice in 15 years Analysts the rout is a classic pain trade – an abrupt reversal that no one sees coming – ...

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Bond markets are getting smoked — and it’s spooking investors and driving down stocks


North American stocks fell with global equities, joining declines among bonds all over the world as governments put into debt supply. The dollar slid. The Standard & Poor\’s 500 Index dropped 0.7 per cent at 10:10 a.m. in Ny, briefly slipping below its average price within the last 50 days. The Stoxx Europe 600 Index lost 1.3 percent. The TSX ...

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How bond ETFs can help during big market selloffs


A well-known maxim in the realm of investing is the fact that to get a good read on the outlook for equities, you need look no further than the text market. Gauging from all the latest hoopla in the realm of bonds, greater caution looks to be in order. Stocks are no longer cheap, normalization within the U.S. is on ...

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


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


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


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?


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


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


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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