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Posts Tagged ‘German bunds’

Investors Say “Nein” to German Bund Auction

Posted by Larry Doyle on April 11th, 2012 10:29 AM |

Those familiar with the shell game or three card monte are aware that in order to keep the game going, new players with new money are required to enter.

In the world of global finance, a wide array of iterations of these games are being played literally each and every trading day. Who often plays the role of both dealer and participant? The central banks.

Without these entities involved in the markets, there is no doubt that interest rates would be substantially higher than current levels. The critically important questions facing all investors are the following:¬† (more…)

Why Are Interest Rates Headed Higher?

Posted by Larry Doyle on March 1st, 2009 3:57 PM |

While our domestic stock markets are down approximately 50% over the last 14 months, there has been a rush of cash into short term money market funds, government bond funds, and in the last few months corporate bond funds and municipal bond funds. As I mentioned in my February 2009 Market Review, I am increasingly nervous about bond investments at this juncture. Why? I’m glad you asked.

1. Primarily due to the massive global government funding needs which are just starting to hit the market. In a recent piece, the highly regarded Financial Times projects global government debt issuance to TRIPLE in 2009.

German Prime Minister Angela Merkel is concerned about European countries looking to tap the markets on or near the same dates. She is proposing global coordination of debt issuance so as to insure that rates are not DRIVEN higher. (more…)

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