Australian (ASX) Stock Market Forum

Bonds are getting difficult to move

Jump to new
wayneL

wayneL

VIVA LA LIBERTAD, CARAJO!
Joined
9 July 2004
Posts
25,751
Reactions
12,940
Despite soothing words, this is a bad sign for bail out Keynesian ####ers.

http://www.bloomberg.com/apps/news?pid=20601103&sid=apiJ2jG6NvJw&refer=us

The UK gu'mint has had problems unloading Gilts too, apparently.

Port Authority Gets No Bids for Taxable Bond Offering
By Jeremy R. Cooke and Adam L. Cataldo

Dec. 3 (Bloomberg) -- The Port Authority of New York and New Jersey attracted no bids from investment banks interested in underwriting a $300 million taxable note offering in another sign that the seizure in credit markets persists.

The three-year notes, backed by revenue from the bi-state agency that operates airports, river crossings and transit in the New York City area, were placed up for competitive sale this morning. The deal carried the highest short-term ratings from Moody’s Investors Service, Standard & Poor’s and Fitch Ratings and would have been the largest of its kind in eight months.

“It’s astonishing,” said Fred Yosca, managing director and head of trading at BNY Mellon Capital Markets in New York. “A household name, like the Port Authority, not being able to get a bid is truly a sign of a market that is in distress.”

States and cities have struggled to sell bonds through advertised bidding in recent months, as underwriters focus on lining up individual investors in negotiated deals ahead of time to avoid getting stuck with too many unsold securities.
Click to expand...
 
wayneL said:
*US already in Depression.

*Recovery will take 25 years

*Stay away from equities

*Bonds the only viable investment

according the this chap who's up 40% this year:

http://www.cnbc.com/id/15840232?video=950838437&play=1
Click to expand...

The problem is, bonds aren't a viable investment either.

Because at this stage, massive default is an absolutely enormous risk.

There isn't anywhere you can hide, that's the real problem.
 
chops_a_must said:
The problem is, bonds aren't a viable investment either.

Because at this stage, massive default is an absolutely enormous risk.

There isn't anywhere you can hide, that's the real problem.
Click to expand...

...and I think it's a bit like praising equities @ XJO 6500... not much more possible upside and a whole lot of downside.
 
wayneL said:
...and I think it's a bit like praising equities @ XJO 6500... not much more possible upside and a whole lot of downside.
Click to expand...

Exactly. If you aren't in now, why would you bother?

Especially when it looks like some major western nations are going to default. What are they going to do then?
 
Top