3 ms·
Have you looked at the credit market this month? It’s in shambles as yields are soaring. It’s not that higher yields is bad. But moving so quickly is dangerous.
by nemo44x 7y ago
Have you looked at the credit market this month? It’s in shambles as yields are soaring. It’s not that higher yields is bad. But moving so quickly is dangerous. Bonds, etc are necessary to maintain supply lines, pay people, etc.
- xiphias2 7y agoWhere are yields soaring? Here it looks like they are going down: https://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield https://www.treasury.gov/resource-center/data-chart-center/i... It wouldn't surprise me if the 80 year bond bubble popped this year, but I don't see that happening yet.
- thoughtstheseus 7y agoCorporate bonds.
- nemo44x 7y agoThe same reason mortgage rates are up even as treasuries are at an all time low. Who wants to loan money in this environment? Have you looked at BBB bonds? A lot of companies have been downgraded because the conditions have changed so dramatically, driving yields up as well.
- xiphias2 7y agoI see, thanks! When do you think it will translate to treasury bonds crashing? I can't imagine them having 5 more years, but on the short term they can easily go to negative yields.
- jrumbut 7y agoAn environment of high yields should be the reward for people who made hay while the sun shined. If we're gonna have socialism, let's have socialism for the poor and capitalism for the rich and not the other way around.