Bonds In Conversation : Blind Sided Rally

The rally goes on as high yields trade at investment grade levels and investment grades trade at almost no risk premium and Japan explores a “third arrow“. It appears to be all hanging on the Land of the Rising Sun now.

*BUYING OVERSEAS BONDS WOULD BE ALTERNATIVE: JPN INSURANCE HEAD
*HARD TO BUY JGBS IN LOW INTEREST, VOLATILE MKT: INSURANCE HEAD

So it sparks a rally even as Gold collapses and we have suicides globally.

China banker and Chairman of a state-owned investment company jumps to death in Beijing. Was it over gold losses?

It is a mad grab for yields and anything but Gold which does not yield much.

Somehow I am starting to believe we are being blinded sided by all that is happening around us and not thinking straight.

China is sending out signals besides the credit rating agencies’ warnings.

China Green Holdings Fails to Repay 1.35b Yuan Convertible Debt.
China’s LDK Solar misses US$23.8m bond payment,

And Germany has been downgraded by Egan Jones to A from A+.

Olam has dropped their legal suit against Muddy Waters and is due to release a strategy review on April 25 (perhaps I was right afterall…. a management revamp ?).

If you ask me, I think do not think it is the retail folks. It is the discretionary portfolio managers and the ETFs and the hedge fund guys. They, who have no choice because they have your money. Because it has always been, and always shall be, about the yield.

I had drinks with an Old Wise Man yesterday. He looks like the Indian version of Santa, if I could not describe it any worse. His main strength ? Common sense.
Yes. Give me the yield.

That has inspired me for a piece to come on Reits failure.

Good luck and a great weekend to all, leaving you with the prices.

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And 2013’s new issues.

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