Tag Archives: emerging markets bonds

Debt danger: emerging markets are the canary in the mine

Despite central banks keeping interest rates at the lowest levels in history and buying debt like there’s no tomorrow, the mountain of debt is not getting any smaller. Emerging markets are, as usual, the place where people are looking for the first signs of trouble.

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European stocks are everybody’s darlings

The European Central Bank (ECB) will find itself the only game in town soon. It is the only major central bank still buying bonds hand over first, and therefore it is dictating the pace for private investors.

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Bank of England makes another monetary policy mistake

The Bank of England’s decision to borrow Mario Draghi’s bazooka has had immediate consequences: investors rushed into bonds like they’re the best investment out there. And what else could they have done? Ever since the financial crisis, central banks have dictated where investors should put their money, picking winners and losers in the markets with their asset purchases.

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The risk rally looks set to continue

The recent risk rally still has legs — at least that’s the case judging by the Bull & Bear indicator compiled by Bank of America Merrill Lynch.

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The rotation out of bonds into equities continues

Equities were the big winners of the past week in terms of capital flows, while investment grade bonds continued to haemorrhage funds.

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Sentiment on the brink of a ‘buy’ signal in oversold market

Stocks were technically oversold, and sentiment was on the brink of a “buy” signal last week, when at the same time there were weekly inflows into European, US and Japanese equities, according to flows data.

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Greece was seen as a ‘buy the dip’ case last week

Capital flows data show that Greece was seen as a “buy the dip” opportunity in Europe last week, before the results of a referendum on the eurozone bailout offer were known.

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Grexit risk causes bond exit – the bond bubble is deflating

Money shifted from bonds into equities for the second week running as the Greek debt crisis deepened, in what may be the beginning of the end for the decades-old bond bubble.

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Investment grade bonds see first outflows in 78 weeks

The first outflows in 78 weeks from investment grade bonds show how bad the “bond massacre” has been, according to a report about the most recent capital flows from Bank of America Merrill Lynch.

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A ‘bond massacre’ before the Fed hikes interest rates

Capital flows showed a “bond massacre” is underway, with the largest weekly outflow from bond funds in 18 months, according to Bank of America Merrill Lynch.

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