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where the money going to be in the next decade?
- Thread starter nutbush
- Start date
http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
take a look at this, seems that bond and yield are going up simultaneously...???
take a look at this, seems that bond and yield are going up simultaneously...???
Monies in this world will be soon mass turning to ASH. Gone case and lost forever.
That's just the "spread" of US govt bonds (of different maturities, ie 3 months period and so on). Not trend of yield.http://www.bloomberg.com/markets/rates-bonds/government-bonds/us/
take a look at this, seems that bond and yield are going up simultaneously...???
Guiding principle, is longer you lock up your money... diff yield rates. Yield is coupon (interest) rate over bond price. If bond market valuation goes up, your yield (simply put, ratio) correspondingly goes down -as in 4.5% example. Then you have capital gain on bond price
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There is also a weird development in some bond markets lately
Let me summarize :
- cost of financing is going higher, going forward
In Mar, Company A issued a 6% bond
In Sept, Company A issued a 6.5% bond
- Yet increment in bond price increment is even higher
In Mar, the price of the 5% bond is 100
In Sept, the first-day price of the 5.2% bond is 108
Initially 5/100 = 5% yield
Now 5.2/108 = 4.8% yield
Standard Chartered issued a 5.8% USD bond recently. It was quickly snapped up and hit nearly 110 in the first day. (10% premium)
Let me summarize :
- cost of financing is going higher, going forward
In Mar, Company A issued a 6% bond
In Sept, Company A issued a 6.5% bond
- Yet increment in bond price increment is even higher
In Mar, the price of the 5% bond is 100
In Sept, the first-day price of the 5.2% bond is 108
Initially 5/100 = 5% yield
Now 5.2/108 = 4.8% yield
Standard Chartered issued a 5.8% USD bond recently. It was quickly snapped up and hit nearly 110 in the first day. (10% premium)
correct sir, this is a normal yield-curve. That means, rightfully, you get higher % of interests if you place fixed-deposits with banks with longer maturity. However, it happened after the lehman brother crisis in Singapore that the yield-curve became inverted for a few months. During that period, the banks give you 5%pa for 6-mth USD fixed deposits OR 4%pa for 12-mth USD fixed deposit.
When yield curve becomes inverted = money crisis.
In the pockets of ruling politicians and their royal (loyal) cronies:
The problem with Sinkieland is that oftentimes, for a select minority, "dignity" can be bought with political connection/ changing goal posts, tax payers$$$ and ( if all else fails) corruption/ extortion/ bribery...
Political cronyism/ changing goal posts:
Extortion/ Use tax payers $$$ to earn "dignity":
"If the annual salary of the Minister of Information, Communication and Arts is only $500,000, it may pose some problems when he discuss policies with media CEOs who earn millions of dollars because they need not listen to the minister's ideas and proposals. Hence, a reasonable payout will help to maintain a bit of dignity."
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Political Corruption/ extortion/ bribery:
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