100-Year Bonds Could Alter How Rate Risk Is Traded (P&L With Paul Sweeney and Lisa Abramowicz, 32 min listen)

(You can listen to the podcast by clicking here)

Marcus Ashworth, Bloomberg Opinion columnist covering European markets, explains the risk that comes with issuing 50- or 100- year bonds which lock the current low rates for a lengthy period: they kill liquidity and are highly sensitive to interest rate fluctuations (we discuss more in the next podcast). However, the hunt for yield has already enticed a number of European countries. Following Ashworth’s discussion, Deepak Puri, Americas CIO at Deutsche Bank Wealth Management, highlights cautiousness going into the next quarter as bond yields sink from their previous highs. He is bullish on equities long-term, however, due to strong corporate earnings. Midway through the podcast the discussion switches to art as the best investment for 2018 – it was up 10.6%. Art collector Harvey Manes advocates portfolio diversification with pieces by up-and-coming artists, which are currently cheap but likely to surge. Finally, the podcast ends with predictions about Hurricane Dorian: instead of insurance giants, it is the smaller regional insurers that will be most impacted.

Why does this matter? Stubbornly low rates have pushed countries like Austria to sell century bonds earlier this year with a mere 1.2% yield. Even serial defaulter Argentina sold a 100-year bond in 2017. Some investors like pension funds are favouring the rate-sensitive bonds, assuming they are protected against inflation and they are able to match the duration of their assets and liabilities. In general, we don’t see investors queuing for these bonds, but they might be forced into safety.

Dr. Anas Alhajji: Oil Market Update (Macro Voices, 27 min listen)

September 17, 2019

Louis-Vincent Gave: Last Week’s Dislocation Between Value and Growth (Macro Voices, 18 min listen)

September 17, 2019

The “Liquification” of Private Markets is Underway (Bloomberg Markets P&L, 28 min listen)

September 17, 2019

Narrative Economics (LSE Public Lectures and Events, 78 min listen)

September 17, 2019

The Debt that Never Dies (The Indicator From Planet Money, 9 min listen)

September 17, 2019

Juliette Declercq: What to Expect From the ECB on Thursday (Macro Voices, 16 min listen)

September 10, 2019

Huw van Steenis On What Central Banks Will Do Next (Odd Lots, 32 min listen)

September 10, 2019

Is It Legal? (Talking Politics, 47 min listen)

September 10, 2019

Trade Talks Episode 99: The Surprising Story of the US Trade Deficit with South Korea (Peterson Perspectives, 15 min listen)

September 10, 2019

Gold’s Rise has Just Begun (Macro Voices, 87 min listen)

September 10, 2019

Riksbank Set To Support a Weaker SEK, Steeper Curves (Macro Strategy Views, 21 min listen)

September 3, 2019

Brexit Update: Constitutional Warfare (Podzept – with Deutsche Bank Research, 13 min listen)

September 3, 2019

Danielle DiMartino-Booth and Peter Boockvar on the Future of Monetary Policy (Macro Voices, 62 min listen)

September 3, 2019

What’s Next for Blockchain? (Techtrends, 20 min listen)

September 3, 2019

Top of Mind: Dissecting the Market Disconnect (Exchanges at Goldman Sachs, 22 min listen)

August 27, 2019

(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)

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