Wall Street Journal (February 17)
“Treasury yields have sprung to multiyear highs, forcing the U.S. government to pay a lot more in interest and putting pressure on the budget.” Over the new decade, federal interest costs are now expected to rise by $1.1 trillion, reviving “Wall Street worries that the years-long acceleration in borrowing under both political parties will eventually weigh on economic growth and asset prices.”
Tags: $1.1 trillion, Asset prices, Borrowing, Budget, Costs, Economic growth, Interest, Pressure, Treasuries, U.S. Government, Wall Street, Worries, Yields
Institutional Investor (March 25)
Due to the “historic buying opportunity,” a few “hedge funds legends” are “quietly contacting investors” These “superstar managers” are “making an exception” and reopening their funds to new investors citing “the massive drop in asset prices catalyzed by the novel coronavirus pandemic.”
Tags: Asset prices, Buying opportunity, Coronavirus, Hedge funds, Historic, Investors, Legends, Reopening
The Economist (June 8)
“The long-term decline in bond yields” has entered “a new phase.” Tumbling precipitously, “the yield on a ten-year Treasury bond has plunged from 2.5% to 2.1% in the past month. Ten-year Bund yields have turned negative again and have reached a new all-time low.” All of this begs a fundamental question, “What will happen when interest rates eventually start to rise again?” It may seem that “the whole edifice of asset prices is founded on a low-rate regime. But what if that regime were to come to an abrupt eventual end?”
Tags: Asset prices
