Wednesday, August 4, 2010

MacroMan on Deflation v. The Bond Bubble

In this post, TeamMacroMan make a few good points:

1. The smart corporates are issuing debt (IBM sub 1%). The good companies usually issue debt at the lowest possible interest rate (duh)
2. fixed income trades seems very crowded (by both mainstream media and trader positioning standards)

I agree with their thought that these factors (plus the greatly appreciated likely absence of Fiscal Stimulus 2.0) could result in a very brutal snap to the upside for interest rates.

No comments:

Post a Comment