Markets

12 Questions To Consider When Thinking About Bond Bubbles

As 2013 began, financial market participants were showered with a new batch of predictions and outlooks for the New Year. A common prognostication (again) was the forecast of an end to low interest rates and the bursting of a bond market bubble that many continue to say is imminent.
12 Questions To Consider When Thinking About Bond Bubbles
Markets

The Sorry maths Of Bonds

The equity risk premium (as defined as the earnings yield on stocks minus the yield on the 10 year treasury note) is wide for good reason.
The Sorry maths Of Bonds
Markets

Is The High Yield Bond Market Looking Frothy?

After an incredible 85% rally since the 2009 lows there are some signs that the high yield bond market is beginning to look expensive. In a search for yield investors have driven high-yield bond risk premiums just below their historical average of 5.1%.
Is The High Yield Bond Market Looking Frothy?
Markets

The Bond Bubble Just Popped

U.S investors have been pouring additional money into bond funds, each and every week, ever since December 2008. This historic streak for bond fund inflows has been an enduring sign of post-crisis sentiment, but last week it finally came to an end.
The Bond Bubble Just Popped