Monthly Archives:

August 2012

Who owns government bonds these days?

The IMF recently released a working paper entitled “Government Bonds and Their Investors: What are the Facts and Do They Matter?” which helps shine a light on whether a change in the investor base in recent years has had an impact on yields. One of the key trends since the onset of the crisis has been a shift in the ownership of government bonds from foreign holders back to domestic holders. Th…

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Asian economic slowdown and the EMD bubble

Last month I commented on the long term headwinds facing Asia and tried to cut through the sales cheese (see here). The last few weeks have seen more evidence of a slowdown in Asia, and seemingly more people buying into the EMD story as valuations in a number of countries have hit extremely expensive levels. Taking one example, in the middle of last week the $2.25bn issue of Peru 7.35% 2025s re…

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Olympigs

Rough cost of the Olympics – £9bn, US national debt – $15.8tn, Quantitative easing – £375bn. These numbers blow my mind. I know they’re big but I don’t really have a concept of how big. So I thought I’d try and put them into some context. I took a look at the national debt of the Euro’s peripheral countries and calculated how many gold medals each country would need to win to pay off their debt…

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