Credit spreads are creeping higher, but high yield traders are not selling. They are hedging.... Read More
Technology is squashing inflation and a global savings glut is driving yields below these already low inflation rates. So for yields to get back up to 4% or 5%, something has to break. We believe this scenario would be toxic for risk markets like equities.... Read More
Stocks cannot handle high rates, as in a 10-year yield above 3.25%.... Read More
Private pension funds have much smaller funding gaps than their government counterparts.... Read More
Defined benefit plans continue to be replaced by IRAs and defined contribution plans.... Read More
A look at outstanding amounts of Treasuries, corporates, agencies, munis and open market paper.... Read More
The amount of outstanding private credit in the U.S. experienced a brief decline during the financial crisis, but government debt grew throughout the entire period. Both are now at new highs.... Read More
High U.S. long-term interest rates relative to the developed world put U.S. small capitalization companies at a competitive disadvantage to their large capitalization competitors. This is especially important now that small capitalization companies have record debt-to-equity ratios.... Read More
The U.S. has the highest interest rates in the developed world. We review several metrics we have shown in the past, while adding several more to show how unusual this is.... Read More
Jim Bianco joined Jim Grant last week to talk about the latest in the funding markets.... Read More
Daily repo injections, even on a temporary basis, risk retarding the credit process. Alternatively, the Fed could permanently expand its balance sheet and push for reduced regulations.... Read More
A look at foreign net sales and purchases of U.S. Treasuries, agencies, corporates and equities through July... Read More
When it comes to ultra-long debt securities, the U.S. government should ignore the warnings from Wall Street. ... Read More
Jim recently appeared on Cheddar TV to discuss a wide range of market-related topics.... Read More
Highlights from the most recent CoT report... Read More
When markets make jarring moves, like the rotation away from momentum stocks or to value from growth, the instinct is to ask who was hurt. But in this case, it is likely saving many active value managers' years.... Read More
Both the yield curve and the relative position of U.S. interest rates to those across the world are pointing to economic stress ahead.... Read More