Tag Archives:

debt

Panoramic Weekly: Emerging Markets win US mid-terms

Emerging Market (EM) bonds and currencies were one of the main beneficiaries of Tuesday’s US mid-term elections, which resulted in a split Congress, with the Democrats controlling the House of Representatives and the Republicans, the Senate. This may refrain President Trump from implementing further fiscal incentives, which usually fuel the economy, lifting Treasury yields and the US dollar. Th…

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Beware of the debt binge

A decade of low interest rates has given companies, governments and households an excellent opportunity to cheerfully load up debt – until now. As interest rates rise and are projected to continue to do so in most major economies over the next three years, higher interest costs may soon send a stark reminder that there is no such thing as a free lunch.

Highly indebted companies are most at ris…

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Three of our most popular charts

We often use Twitter to share the charts that we think are interesting, but probably don’t warrant the extra analysis of a blog. With this in mind, I’ve had a look to see which charts were most favourited or retweeted by our followers at @bondvigilantes and provided a little more detail than 140 characters can allow.

  1. Fed Loan Officer Survey show US banks have tightened standards for six consec…

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Private sector credit in China is approaching an historic crisis level

Credit is the oil that lubricates the engine of an economy. For this reason, economists watch credit statistics closely, in order to assess the sustainability of growth. If credit isn’t growing, it suggests households and firms aren’t confident enough in their respective outlooks to borrow and invest. If credit grows too quickly, it could result in financial and macroeconomic instability – hist…

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Emerging market debt: 2016 post-mortem and 2017 outlook

Despite a year of high political turmoil – which of course included the UK EU referendum and the US elections – emerging market assets proved surprisingly resilient to the various global events, even with rising core government yields in the second half of 2016.  Given that starting valuations at the beginning of the year, both with respect to credit spreads as well as currencies, were pricing …

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It’s Halloween. Here are some scary charts.

The financial world is a scary place. Debt, disinflation and deteriorating growth have plagued investors over the past year, plunging bond yields into negative territory in a number of countries. Perhaps most frighteningly, it is now eight years since the financial crisis and central banks in the developed world continue to employ an ultra-easy monetary policy stance. With government bond marke…

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Emerging Markets debt: 2015 returns post-mortem and 2016 outlook

Following on from Gordon’s review of the best and worst performing fixed income asset classes last year, I wanted to take a more in depth look at how emerging markets performed in 2015 and what to look out for in 2016.

Some themes that drove the market in 2015 were the same themes than drove it in 2014. Once again, asset allocation was critical. Local currency debt, for the third year running, …

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Yield without commodity risk – 4 ways you can have your cake and eat it in the US High Yield market

Following another sell off, the US high yield market has once again touched the psychologically important 8% yield level today. This is an important valuation signal that has helped to tempt investors back into the market in recent months. However, the last move up in yields has been driven in part by a renewed downdraft in commodity prices, not least with WTI pricing in the low $40’s. Energy i…

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Will the thawing in US-Cuban relations bring havoc to the region’s bonds?

It is August and I should be enjoying a beach holiday, rather than being stuck in London under temperamental weather. To mitigate my despair, I decided to write some blogs on the topic of tourism. Given the ongoing normalisation of US-Cuba relations, I have been looking at the impact that this unprecedented shift in policy could have on the region. Although the embargo and travel restrictions r…

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Greek debt forgiveness: Where there’s a will, there’s a way

The Euro Summit meeting in Brussels that took place a couple of weeks ago seems to have finally provided some temporary closure to the Greek debt crisis. The dreaded Grexit scenario was avoided (at least for the moment) and the Greek government was able to repay its arrears to the IMF and the ECB using the €7.2 billion bridge loan provided by the European Council. Looking ahead, this short term…

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