Fallout from the Silicon Valley Bank collapse has directed attention to a $620 billion ticking time bomb in the banking system that has the potential to spell doom for the financial system.
Some tech industry founders got emails from their venture-capital investors on Thursday urging them to move their money out of Silicon Valley Bank, according to people familiar with the matter, adding pressure to the already troubled firm.
Newsfeed: SVB’s 44-Hour Collapse Was Rooted in Treasury Bets During Pandemic Read More »
The Bank of England on Tuesday announced an expansion of its emergency bond-buying operation as it looks to restore order to the country’s chaotic bond market. The central bank said it will widen its purchases of U.K. government bonds — known as gilts — to include index-linked gilts from Oct. 11 until Oct. 14. Index-linked gilts are bonds where payouts to bondholders are benchmarked in line with the U.K. retail price index.
One minute after 1pm, the Treasury announced results from today’s sale of $43 billion in 2Y paper, which were nothing short of disastrous. The high yield – already the highest in 15 years – was almost a full percent, or 98bps, above August’s 3.307%, and stopping at a high yield of 4.290%, the auction tailed the When Issued 4.274% by 1.6bps, the biggest tail going back to feb 2020 when the bond market was similarly paralyzed, but back then it was due to covid.
Newsfeed: 10Y Yield Soars To 12 Year High After Dismal 2Y Auction Read More »
The unraveling of the bond market will continue to batter stocks over the coming months, according to a Friday note from Bank of America. Bonds are experiencing their worst decline since 1949 as interest rates soar amid a global central bank campaign to fight inflation. The US Aggregate Bond ETF is down 15% year-to-date, while global bonds are down even more.
With central banks worldwide aggressively ratcheting up interest rates in the face of stubbornly high inflation, prices are tumbling as traders race to catch up. And with that has come a grim parade of superlatives on how bad it has become.
Newsfeed: The Great Bond Bubble Is ‘Poof, Gone’ in Worst Year Since 1949 Read More »
Treasury yields rose on Monday as data on orders for durable goods and pending home sales surprised to the upside, but the sale of two- and five-year notes was weak as the market gauges the economy and Federal Reserve …
Newsfeed: TREASURIES-U.S. yields rise after poor Treasury auction Read More »
Global bonds are on the cusp of entering a bear market after the fastest US inflation in four decades fueled bets the Federal Reserve will make its biggest interest-rate hike since 1994 this week.
Newsfeed: Global Bonds Are on Cusp of Bear Market as Fed Faces Reckoning Read More »
In times of Treasury turmoil, the biggest investor outside American soil has historically lent a helping hand. Not this time round.
Newsfeed: Biggest Treasury Buyer Outside U.S. Quietly Selling Billions Read More »
Real estate investing is largely the business of using debt to acquire streams of income and build oceans of equity. In the hands of a professional real estate investor, mortgages are like a super-charged power tool … making the job of wealth building easier, faster, and more profitable. Of course, powerful tools in the hands
Something weird is happening with mortgages … Read More »