Unstoppable $100 Trillion Bond Market Renders Models Useless (Jun 2014)

Debt-Bomb

Source: Bloomberg – Unstoppable $100 Trillion Bond Market Renders Models Useless

Notable excerpts:

If the insatiable demand for bonds has upended the models you use to value them, you’re not alone.

Just last month, researchers at the Federal Reserve Bank of New York retooled a gauge of relative yields on Treasuries, casting aside three decades of data that incorporated estimates for market rates from professional forecasters. Priya Misra, the head of U.S. rates strategy at Bank of America Corp., says a risk metric she’s relied on hasn’t worked since March.

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Treasury Yields Reach Two-Year High on Outlook for Fed Tapering (Jan 2014)

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Source: Bloomberg – Treasury Yields Reach Two-Year High on Outlook for Fed Tapering

Notable excerpts:

Treasury 10-year yields reached the highest level in more than two years on speculation the U.S. economy will improve enough for the Federal Reserve to end bond purchases in 2014.

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BOJ Said to See Significant Room for More Bond Purchases (Dec 2013)

BOJ

Source: Bloomberg – BOJ Said to See Significant Room for More Bond Purchases

Notable excerpts:

Bank of Japan officials see significant scope to boost government bond purchases if needed to achieve their inflation target, according to people familiar with the discussions, signaling little concern with perceptions of underwriting fiscal deficits.

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First China Default Seen as Record $427 Billion Debt Due (Dec 2013)

shanghai

Source: Bloomberg – First China Default Seen as Record $427 Billion Debt Due

Notable excerpts:

Chinese company debt twice the size of Ireland’s economy will come due in 2014, spurring concern the nation is on the cusp of its first corporate bond default.

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Bond Losses of $1 Trillion if Yields Spike, BIS Says (Jun 2013)

economic_collapse

Source: CNBC – Bond Losses of $1 Trillion if Yields Spike, BIS Says

Notable excerpts:

Bondholders in the United States alone would lose more than $1 trillion if yields leap, showing how urgent it is for governments to put their finances in order, the Bank for International Settlements said on Sunday.

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