Posts filed under “Fixed Income/Interest Rates”
Earlier this week, we noted that “the Consensus Hates Bonds.” That is a small part of the reason my firm decided to increase our exposure to specific types of fixed income this year after having been significantly underweight bonds in 2013. I mentioned we added preferreds and corporate fixed income, obtaining that exposure primarily though exchange-traded funds.
That struck a chord with J.C. Parets, a chartered market technician. J.C. is founder of Eagle Bay Capital, LLC, and is the author of the blog All Star Charts.
Crowding In – Bond Interest Rates David R. Kotok Cumberland Advisors, December 14, 2013 We are watching bond market volatility as Treasury bonds struggle with questions about what the Fed (Federal Reserve) is going to do. Only the passage of time and improvement of communication from the new Fed leadership will resolve this…Read More
Puerto Rico Update David R. Kotok Cumberland Advisors October 29, 2013 There has been a recent flurry of activity regarding Puerto Rico, involving their debt, rating agency views of that debt, the bond insurers that have been insuring their debt, the state-specific mutual funds that are holding Puerto Rico debt, and the…Read More
Yields and default Click to enlarge Now that we managed to avoid default, let’s look at some historical examples of Sovereign default. 1. United States 2013 2. Germany 1938,1948 3. Japan 1942, 1946-1952 4. France 8 times between 1558-1788. Last one in 1812 5. Italy 1940. Almost daily speculation of another default since 2008 6. Spain 1809, 1820, 1931,…Read More
Puerto Rico David R. Kotok, Cumberland Advisors, October 16, 2013 Puerto Rico is not the federal government. It is an important debt problem. Some readers saw the Barron’s front-page article on Puerto Rico and its financial problems. The details of the debt burdens of Puerto Rico make for an ugly picture. Puerto Rico…Read More
click for ginormous graphic Source: NYU VLAB I mentioned NYU’s VLAB earlier, but one more trick I wanted to share: You can drill down by region or even country to see how much risk is in the system. Note that this is a function of both size and riskiness, i.e., a very small reckless…Read More