How bonds became stocks and stocks became bonds

Accurate systematic bond pricing becomes the key in solving volatility in bond prices due to stock-like trading Source: Financial Times Bonds have become the new equities, say fund managers, stirring concerns that dangers are lurking in the supposedly safest corners of financial markets. Historically, investors have for the most part bought government bonds for their…

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US corporate bonds sail through equities volatility

 The volatility in equities are steadily moving higher in sovereign yields and a strong demand for debt are likely to be the reasons the corporate bond market has held firm. Source: Financial Times As investors sought to digest the first swoon in US stock markets since early 2016, chipmaker Broadcom outlined plans to tap the debt…

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Beware the $500 Billion Bond Exodus

 The great on-shoring could prompt multinationals — which have parked much of their overseas profits in Treasuries and U.S. investment-grade corporate debt — to lighten up on bonds and use the money to goose their stock prices.  Source: Bloomberg For years, the likes of Apple Inc. and Microsoft Corp. have stashed billions of dollars offshore to slash their…

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