Category Archives: Bonds

Bank Exposure to Domestic Sovereigns

Posted on July 11, 2011 by macromon

Here at the Global Macro Monitor we perceive a rapidly changing financial landscape.  The concept of risk-free is being redefined as we write and analysts are now forced to look at the systemic risk caused by a banking system’s exposure … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Euro, Fiscal Policy, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 2 Comments

Why Europe Can’t Afford a Greek Haircut

Posted on June 29, 2011 by macromon

If a picture is worth a thousand words, the following chart from the IMF encapsulates all the analysis one needs to understand why Mr. Trichet and the rest of the Eurozone bureaucracy are so adamant about not letting Greece restructure … Continue reading →

Posted in Black Swan Watch, Bonds, Budget Deficit, Charts, Euro, PIIGS, Policy, Politics, Sovereign Debt, Sovereign Risk | Tagged , , , | 4 Comments

Is the Fed the World’s Largest Fixed-Income Hedge Fund?

Posted on June 24, 2011 by macromon

The following data is taken from Congressional testimony of the well respected banking analyst, Bert Ely, illustrates how the Federal Reserve has gone from being a taxpayer subsidized monetary authority to one of the world’s largest and most profitable bank/fixed-income … Continue reading →

Posted in Bonds, Economics, Inflation/Deflation, Monetary Policy | Tagged , , , | 6 Comments

Debt and Leverage in Advanced Economies

Posted on June 20, 2011 by macromon

The following is one of the most comprehensive snapshots of relative debt and leverage in the major advanced economies.   The source of the table is the IMF’s Global Financial Stability Report (page 11). We find interesting that U.S. debt held … Continue reading →

Posted in Bonds, Budget Deficit, Charts, Economics, Sovereign Debt, Sovereign Risk | Tagged , , , , , | 3 Comments

The New Perfect Storm?

Posted on June 19, 2011 by macromon

We received the latest Bubble Bulletin newsletter from the Society of Actuaries (SOA) last week and it was, to say the least, “hair raising.”   According to the report, Actuary Shaun Wang, a leader in enterprise risk management, and founder and … Continue reading →

Posted in Black Swan Watch, Bonds, Commodities | Tagged , , , | Leave a comment

Governor Brown Vetoes “Greece on the Pacific” Budget

Posted on June 16, 2011 by macromon

Governor Jerry Brown just vetoed California’s budget, which was put together in haste last night so legislators would still receive their pay.  A ballot measure passed by voters last year meant that if lawmakers didn’t meet Wednesday’s deadline, their salaries … Continue reading →

Posted in Black Swan Watch, Muni Market, State and Local Government | Tagged , , | 1 Comment

The Great QE2 Flush Out

Posted on June 10, 2011 by macromon

We’ve updated our Treasury flow charts with new data from today’s release of the Federal Reserve’s Flow of Funds Accounts.   The quarterly data are seasonally adjusted and annualized.    They reveal quite an interesting picture. In Q1 2011, the Fed’s … Continue reading →

Posted in Bonds, Budget Deficit, Charts, Dollar, Equities, Monetary Policy, Sovereign Debt | Tagged , , , , | 4 Comments

Chart of the Day: California’s Volatile Revenue Base

Posted on June 6, 2011 by macromon

The following chart is from the California Legislative Analyst’s Office (LAO) and is indicative of the state government’s unstable revenue base.   The government receives a higher proportion of its revenue from personal income taxes than most states, which is also … Continue reading →

Posted in Bonds, Budget Deficit, Chart of the Day, Fiscal Policy, Muni Bonds, Muni Market, State and Local Government | Tagged , | 6 Comments

The New Economic Stimulus: Default on Your Mortgage?

Posted on May 24, 2011 by macromon

Jim Cramer had an “Eureka Moment” on his  show last night: When 17 million people cease paying their mortgages… and that’s if everybody does… you have 17 million people losing the biggest monthly payments they have to make, totally at … Continue reading →

Posted in Apple, Bonds, Economics, Housing | Tagged , , | 4 Comments

Euro Swan Dives; Eichengreen Nails It

Posted on May 11, 2011 by macromon

The Euro is down big again on debt fears/confusion/politics.   Europe needs a plan and we point to Barry Eichengreen’s (our bet for next year’ Nobel Prize)  article posted on Project Syndicate this morning. There is a fear in Europe and … Continue reading →

Posted in Black Swan Watch, Bonds, Euro, Sovereign Debt, Sovereign Risk | Tagged , , | 1 Comment