Investors Devour Bonds
Joe Rennison and Eric Platt report for the Financial Times on investors' demand for bonds from blue-chip companies. They write:
Bonds sold since March by...
Do Stocks Always Beat Bonds Over the Long Run?
The WSJ reports on new work that shows historically investment-grade bonds have beaten stocks in 40% of ten year periods. What’s more, in many...
Another Reason I don’t Like Municipal Bonds
The Federal Reserve has now become the lender of last resort to the nation's most mismanaged states and cities. This is just one more...
How will the U.S. Repay $30 Trillion in Debt?
With Congress considering yet another stimulus bill with the price tag measured in trillions, Victor Davis Hanson offers a sobering reminder of what comes...
Fed Goes Junk Shopping
The Federal Reserve has destroyed investors' sense of risk. Bloomberg's Davide Scigliuzzo, Craig Torres, and Lisa Lee explain how no junk debt is too risk for...
Margin of Safety Still Matters: High-Yield Bond ETFs Crater
For much of the last five years, junk bonds have outpaced short-term investment-grade bonds. Ultra-low interest rates, quantitative easing, and a central bank set...
Coronavirus Infects Stock Market: Part II
Yesterday you read that the coronavirus was causing panic in markets, sending stock prices plummeting. Below you can see that, while DJIA stock prices...
Large Downgrades Test High Yield Debt Market
Joe Rennison reports for the Financial Times that "fallen angel" downgrades could test the high yield debt market. He writes:
When S&P withdrew General Motors’ top-quality...
Don’t Let Tax-Free Wag Your Fixed Income Investments
When you read about crap muni bonds issued by Chicago, you see why they do not belong in your portfolio. The Editors at The...
Junk Bond Traders are Extra Jumpy over Ratings Downgrades
In normal times, junk bond traders will often have ratings downgrades priced in well before the ratings agencies get around to making it official....