When do commodities sector resurrect.
Financial roots USTs root
1. US major banks are charging more fees to transact general collateral finance due to falling assets price and increase costs for hedging contracts together with stricker lending policies that make companies looking other funding sources like hedge funds, investment firms and others.
2. US banks could be the worse performing stocks due to the weakness of 10yr treasury yield. The reason behind is the over leveraged in treasury security holdings and mortgage backed security holdings.
3. When there're issues with USTs then corporates junk bonds will surge higher. There's clear evidence the GCF is advancing over UST.
The stronger demands for junk bonds will be a kick start for stocks especially in Commodities sector.
Bear in mind that without some defaults in the US corporates there's not much forces to push the value of USTs down apart from other ideas I posted.
Corporate Defaults will attract investors, oil for example, thus it'll create buying sprees in Commodity stocks.
Silver/ gold intact on the chart I posted earlier will be rocketing.
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When do commodities sector resurrect. Financial roots USTs root...
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