Treasury Demand Shows Deficits Irrelevant With Record Yields BusinessWeek
The inability of the U.S. government to reduce record debt and deficits is being rewarded in the bond market.
For all the concern in Washington that the nation is piling on too much borrowing as the deficit exceeds $1 trillion for a fourth straight year, investors are showing insatiable demand for its bonds. They snapped up the 10-year notes sold by the Treasury Department at an auction last week at a yield of 1.855 percent, a record low for that maturity. Trading has slowed to levels last seen before the global financial crisis began in 2007 as money managers sock away the securities.
“Are we likely to get out of this unusually low yield environment anytime soon? I don’t think so,” said David Gerstenhaber, who founded Argonaut Management LP after leaving Julian Robertson’s Tiger Management LLC in the 1990s. While deficits will matter someday, investors’ desire to preserve the value of their capital is capping yields, he said.
“Right now there seems to be more than enough demand for safe haven assets on the part of fiduciaries who need fixed- income,” Gerstenhaber, whose New York-based firm manages $1.8 billion, said in a May 10 telephone interview.
Collateralized Debt Obligation (CDO)
Introduction to collateralized debt obligations (to be listen to after series on mortgage-backed securities.
synthetic fixed rate debt - News
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Fitch Rates JEA's (Florida) $125.260MM Electric System Sub Rev ... - Earthtimes (press release) Fitch Rates JEA's (Florida) $125.260MM Electric System Sub Rev For variable-rate senior lien debt that has been swapped to a synthetic fixed rate, JEA proposes to calculate the reserve requirement based upon the |
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Big Easy Airport Offering - Bond Buyer Big Easy Airport Offering The board will also terminate the five synthetic fixed interest rate swaps on the existing bonds. Godfrey said the termination fees will total between $13 |
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European Market Update: Financial sector health remains primary ... - Fxtraders.eu European Market Update: Financial sector health remains primary GE] Announced it would reduce production of synthetic rubber to lower costs and inventory . The measure would impact around 350 workers. |
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Liz Claiborne Inc. Completes Amendment and Extension of Its Bank ... - Earthtimes (press release) Liz Claiborne Inc. Completes Amendment and Extension of Its Bank The amendment and extension revises the calculation and required coverage levels of the fixed charge financial covenant which will be calculated on a |
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United States: Further Update On Federal Government Support For ... - Mondaq News Alerts (registration) United States: Further Update On Federal Government Support For FRB-NY approval may be conditioned on debt or deposit rating criteria. Second, the FRB-NY modified several of the economic parameters of the MMIFF, |
Debt Directory
Creating Synthetic Callable Debt Using Swaptions | FINCAD
Learn how Federal Farm Banks Funding Corporation uses FINCAD XL to create a synthetic callable bond and to calculate the callable bond pricing spreads.
Presentation to IPSCO Regarding an Equity Offering
C. Advantages & Disadvantages of Synthetic Fixed Rate Debt ... Net cost of synthetic fixed rate debt = fixed swap rate +/- floating rate trading spread + support costs ...
SYNTHETIC DEBT
products as synthetic leases and synthetic debt enable corporations to lease assets and also benefit ... rate debt rather than fixed-rate debt because institutions in the ...
Collateralized debt obligation - Wikipedia, the free encyclopedia
Instead, synthetic CDOs gain credit exposure to a portfolio of fixed income assets ... bond · Fixed rate bond · Floating rate note · High-yield debt · Inflation-indexed ...
Asymmetric Information and Credit Quality: Evidence from ...
in 1993 and 1994 and did not use synthetic fixed-rate financing) ... synthetic fixed rate debt. The cost of the debt to such firms under the SFRF strategy is ...
