Fed’s Waller: Rise in Bond Yields Reflects Economic Recovery

Fed Governor Christopher Waller says the U.S. central bank should not intervene to obstruct the market reacting to the brighter U.S. economic outlook. Source: Bloomberg “If we saw a lot of disorderly performance in longer-term yield markets, we might have to step in just for financial stability reasons once again” “But right now the movements…

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Investors Worldwide Are Tiptoeing Back Into U.S. Corporate Debt

Asian and European investors are showing early signs of renewing their demand for longer-term U.S. corporate bonds, after yields have started stabilizing, and the result could be better performance for the securities. Source: Bloomberg Tuesday saw the most overnight demand for U.S. corporate debt since October 15, with more than $359 million being sold to…

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Dysfunctional Credit Markets – Still Waiting On The Fed

As the week ended, U.S. credit markets appeared confused, if not outright dysfunctional. The 10-Year Treasury yield began February at 1.09% and reached an interim peak of 1.54% on February 25. Then it retreated to 1.42% as markets thought the rise had simply been overdone. Source: Forbes But Fed Chair Powell’s refusal to assure financial…

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Bond investors add liquidity to credit risk in a desperate search for yield

Modeling likely best-executable pricing for high-yield bonds that trade once every two weeks requires aggregating vast amounts of data from multiple sources in a credit market fragmented across many trading venues and dark over-the-counter dealing. Source: Euromoney In January, Overbond announced an agreement to take settlement data from Euroclear for bonds that trade away from…

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