By Robert Folsom
4/5/2011 5:00:00 PM
What would you think of a "bond" that allowed the borrower to skip interest payments, with a promise to pay the interest later? If you think "That means the borrower promises to keep a broken promise," you're spot-on. Welcome to the world of payment-in-kind (PIK) bonds...
Filed Under:
Category: Interest Rates
What's Behind The Recent Bond Market Rally?
You didn't have to wait for "unrest in Libya" to anticipate U.S. Treasury bonds' falling yields and rising prices.
By Nico Isaac
2/28/2011 4:45:00 PM
Starting in early February, the long-dated securities sector was undergoing its longest slump since 2008. The 10-year Treasury note yield had soared 130 basis points from its October trough to hit a nine-and-a-half month high, while prices (which move opposite yields) were in losing streak central. And, according to the usual suspects, the big "fundamental" arrow in bond prices would continue to point DOWN.
Filed Under: Daily Sentiment Index (DSI), fundamental analysis, Treasury bonds, U.S. Treasuries
Category: Interest Rates
By Nico Isaac
12/21/2010 5:15:00 PM
TREASURIES -- the very name conveys a thing that is secure, protected, and will appreciate over time. Otherwise, it'd be called something like "TRASHeries" or "Mattress Stuffers." Then, there's the official seal of the US Department of Treasury: its image of a scale and a key symbolize "balance" and "trust." And, finally, there's the mainstream economic experts who have it on good authority that long-term bonds increase in value during financial instability and uncertainty.
Filed Under: Campaign for Independent Thinking, conquer the crash, junk bonds, municipal bonds, Robert Prechter, U.S. Treasuries, Treasury bonds
Category: Interest Rates
By Debbie Iseler
12/8/2010 3:30:00 PM
...I asked what kind of bonds they got into. “High-yield bond funds,” was the answer. What kind of bonds are these funds invested in? To this question I got blank stares. How long do you plan on staying in these funds? This got the reply I was afraid I'd hear: “Why would we get out when they are so much safer than stocks?” That's when my new interest in these once boring investments turned to fear -- for my friends.
Filed Under: junk bonds, municipal bonds, mutual funds, personal finance, Robert Prechter, U.S. Treasuries, Treasury bonds
Category: Interest Rates
The Next Major Disaster Developing for Bond Holders
A must-read FREE report for investors in fixed-income markets like Treasury bonds, municipal bonds or high-yield bonds
By Editorial Staff
11/3/2010 11:15:00 AM
Elliott wave analysis can warn you of trend changes when the rest of the investment public least expects a market reversal. With that in mind, we have created a new report for our free Club EWI members: "The Next Major Disaster Developing for Bond Holders." Enjoy this excerpt -- and for details on how to read this important report free, today, look below the excerpt.
Filed Under: Robert Prechter, Treasury bonds, municipal bonds
Category: Interest Rates
By Jason Lureman
10/15/2010 1:30:00 PM
Federal Reserve Board Chairman Ben Bernanke said on October 15 that the Fed is ready to start its next round of quantitative easing, if needed. But while Bernanke believes that the Fed's intervention will stimulate the economy, reduce unemployment and prevent deflation, Elliott Wave International's Senior Global Bonds Analyst Bill Fox believes that QE2 will do "nothing to alleviate this issue."
Filed Under: quantitative easing, quantitative easing, U.S. Treasuries, Ben Bernanke, U.S. Federal Reserve (the Fed), deflation, inflation, unemployment
Category: Interest Rates
By Bob Stokes
10/14/2010 4:15:00 PM
One of the lowliest and often ignored creatures in the financial jungle is set to emerge triumphant...
Filed Under: Treasury bills (T-bills), Robert Prechter
Category: Interest Rates
By Bob Stokes
10/12/2010 3:15:00 PM
These financially uncertain times have higher levels of risk where there used to be very little. A conservative investor is one thing, while a conservative investment is another...
Filed Under: Elliott Wave Principle
Category: Interest Rates
By Robert Folsom
10/5/2010 1:00:00 PM
It's been barely two years since we all saw exactly how a story like this must end. But this time it's even worse. Previously the toxic assets were based on subprime mortgages; now the toxic assets are based on subprime auto loans. Auto loans, dear reader...
Filed Under: subprime lending, investor psychology
Category: Interest Rates
The Fed Is Not In Control: Potent Directors Fallacy
Robert Prechter's riveting report into the real "power" of the Federal Reserve is available now -- free
By Nico Isaac
9/21/2010 6:00:00 PM
The time is June 2004: An alien U.F.O. lands smack dab in the center of Wall Street. A green little man descends onto the sidewalk and asks to see the "LEADER" of the U.S. financial system. Out of the mist, Federal Reserve chairman Alan Greenspan appears. Over the next few hours, Greenspan explains to the Martian how the Fed -- via interest rate policy -- is the puppet master of the overall economy and direction of stocks.
Filed Under: U.S. Federal Reserve (the Fed), conquer the crash, Robert Prechter
Category: Interest Rates
By Bob Stokes
9/20/2010 5:45:00 PM
We've seen the shocks in the stock market; likewise the plummeting real estate market, which the latest data shows is in still in decline. The next shock may well come from...
Filed Under: U.S. Treasuries, Robert Prechter
Category: Interest Rates
By Jason Lureman
9/9/2010 3:00:00 PM
Created by EWI's Jason Farkas, this Debt Parabola (a.k.a. Debt Man's Curve) uniquely represents sovereign, municipal and corporate bond issuers on the same risk analysis spectrum. Jason recorded this 10-minute video to show which bond issuers are hovering in and around the "Trouble Zone," and point out the potential problems facing individual U.S. states and South American countries.
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Category: Interest Rates
By Nico Isaac
9/3/2010 5:15:00 PM
Right now, the market for long-dated securities seems as alluring as a handsome secret agent. Think: "Bond. Treasury Bond" -- leading role in the Quantum Of (financial) Solace. So far in 2010, investors have poured $190.7 Billion into bond mutual funds; all the while withdrawing about $7 Billion from stock funds.
Filed Under: Treasury bonds
Category: Interest Rates
By Bob Stokes
8/17/2010 12:30:00 PM
There are reasons why "credit has been on sale", and why bonds may not be the "safe haven" many believe them to be. Discover those reasons in the...
Filed Under: Elliott Wave Principle
Category: Interest Rates
By Nathaniel Williams
4/22/2010 12:00:00 PM
Because asset valuations in Asia are on the rise, many observers now compare the situation to the start of the 1997-1988 Asian Financial Crisis. That means that the old, conventional notions are back -- including the one that blames the Bank of Japan for lowering interest rates, thereby causing asset values to rise. That piece of conventional wisdom sounds logical, but it's actually flawed at its core.
Filed Under: Bank of Japan, U.S. Federal Reserve (the Fed)
Category: Interest Rates
By Bob Stokes
4/1/2010 1:15:00 PM
Queen Victoria reigned for much of the 19th century, when Britain was a great industrial power. The impact of her persona was such that an entire era was named after her -- "The Victorian Era." Yet, when she died, the U.S. stock market continued "in the even tenor of its way." Even the assassination of Abraham Lincoln, our great "Citizen of the Universe," who promoted "malice toward none," did not jolt the market from the course it was already traveling!
Filed Under: Dow Jones Industrial Average (DJIA), Robert Prechter
Category: Interest Rates
By Nico Isaac
3/26/2010 4:30:00 PM
How's the saying go -- "Consistency is the hobgoblin of small minds... and the mainstream financial media?" Okay, maybe I added that last bit myself, but when the shoe fits... Fact is, hardly a day goes by when the sequence of events relayed by one news source line up with the events of another. Case in point: these conflicting reports of Friday March 26.
Filed Under:
Category: Interest Rates
By Nico Isaac
3/17/2010 7:00:00 PM
According to Wall Street wisdom, "Fed" stands for Financial Emergency Defeater. When the US economy hangs in the balance, only the Federal Reserve can keep things afloat via an accommodating monetary policy and other strategic emergency measures. The reality of the central bank's power, however, is a far different story.
Filed Under: U.S. Federal Reserve (the Fed), U.S. Federal Reserve (the Fed), central banks, Robert Prechter
Category: Interest Rates
By Nico Isaac
1/19/2010 3:45:00 PM
If aliens landed on earth today and asked, "Take Us to Your FINANCIAL Leader," the final destination would not be the White House. It'd be the Eccles Building, the famous headquarters of the Federal Reserve Board. The story goes that the Fed is the all-knowing, infinite-power wielding "OZ" of the U.S. economy. With the flip of its monetary-policy switch, the central bank can manipulate the course of any financial market in the direction of most benefit.
Filed Under: U.S. Federal Reserve (the Fed), Ben Bernanke
Category: Interest Rates
Interest Rates: Think Central Banks in Control? Think Again.
What do the Fed, European Central Bank and Reserve Bank of Australia have in common? Answer: They don't control interest rates.
By Vadim Pokhlebkin
8/18/2009 10:45:00 AM
If you believe that central banks' "potent directors" carefully watch economic indicators and deftly adjust interest rates accordingly, this will come as a shock: Central banks are no more in control of interest rates than they are of the weather. Three examples prove this point.
Filed Under: U.S. Federal Reserve (the Fed), european central bank
Category: Interest Rates