GOLD 0.51% $1,391.7 gold futures

Bond = something that holds paper together (just?). Perpetual...

  1. 1,630 Posts.
    Bond = something that holds paper together (just?).
    Perpetual bond = Something that holds paper together for a long, long time (hopefully?).
    James bond = Goldfinger
    He's the man, the man with the Midas touch
    A spider's touch
    Such a cold finger
    Beckons you to enter his web of sin
    But don't go in

    “Pigs are greedy and hogs get slaughtered.”
    When I was a junk bond trader in the 1990s’ we referred to anyone who bought a bond yielding over 12% as “a yield hog.” Back then, anything over 12% had a high probability of default. Back then 12% was 600 basis points (6%) over the 10-yr Treasury bond.
    Currently, some junk bonds with triple-C ratings are yielding under 6%. This is less than 400 basis points (4%) over the the 10-yr bond. Think about it: because the Fed has taken short rates to zero, investors are chasing bonds with 5% yields that have at least a 50/50 chance of defaulting. This is despite the fact that energy junk bonds recently have delivered $100’s of millions of losses to junk bond investors.
    The retail investor is always the last one in when chasing an investment bubble and always gets hurt the most when the bubble collapses. Currently there’s a massive bubble being blown in the junk bond market.
    http://www.silverdoctors.com/the-junk-bond-market-is-setting-up-to-slaughter-investors/
 
watchlist Created with Sketch. Add GOLD (COMEX) to my watchlist
 
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.