By Luis Arroyo, in Madrid | Look at the USA. In the graph above, left scale, the yields (spreads of Treasuries) of BB corporate bonds (red line), and B (green line). Right scale, blue line, inflationary expectations (type of bond at 10 years minus the same inflation protected). A functional relationship can be detected between the variations in inflation expectations and private bond yields. The higher the expected inflation, the…
Meet a Republican candidate to the US presidency who dared to sing this at the Omaha press club in 1991: “Imagine there’s no pizza / I couldn’t if I tried / Eating only tacos / Or Kentucky Fried / Imagine only burgers / It’s frightening and sad…”
NEW YORK | Bank of America’s decision to charge customers $5 a month to use their debit cards starting sometime next year has risen an enormous outrage in the US. The company’s stock price has fallen (as of October 4, earnings estimates had fallen to 19 cents a share from 27 cents on Aug. 1). Customers have complained. The bank’s website has experienced significant problems that some believe might be…
NEW YORK | Bank of America’s decision to charge customers $5 a month to use their debit cards starting sometime next year has risen an enormous outrage in the US. The company’s stock price has fallen (as of October 4, earnings estimates had fallen to 19 cents a share from 27 cents on Aug. 1). Customers have complained. The bank’s website has experienced significant problems that some believe might be…
In spite of appetite for US banks being healthy and at the top of the S&P upward trend, their CDS keep rocketing, too, at quite a pace (+7,72% on Thursday). The graph pictures the changes from May-June. We fear is a correlation effect from what’s happening to Chinese banks. Details from Barclays Capital: “China closing for lunch off 37bps, noticeably less phased by the stream of commentary overnight about problems…
In spite of appetite for US banks being healthy and at the top of the S&P upward trend, their CDS keep rocketing, too, at quite a pace (+7,72% on Thursday). The graph pictures the changes from May-June. We fear is a correlation effect from what’s happening to Chinese banks. Details from Barclays Capital: “China closing for lunch off 37bps, noticeably less phased by the stream of commentary overnight about problems…
From Citigroup analysts : “Ultimately, the decision taken by the Fed was in line or even went beyond what was expected. The reinvestment of MBS debt by more than $20bn per month was good news for the real estate market, which still shows no clear signs of recovery. The IMF itself has already included in its financial stability report the possibility of going ahead with haircuts in the agencies’ debt…