{"id":49508,"date":"2019-11-10T14:59:12","date_gmt":"2019-11-10T19:59:12","guid":{"rendered":"https:\/\/olduvai.ca\/?p=49508"},"modified":"2019-11-10T14:59:17","modified_gmt":"2019-11-10T19:59:17","slug":"broke-bond-markets-mounting-italy-surpasses-greece-as-europes-riskiest-sovereign","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=49508","title":{"rendered":"Broke Bond Markets Mounting: Italy Surpasses Greece As Europe’s Riskiest Sovereign"},"content":{"rendered":"\n

Broke Bond Markets Mounting: Italy Surpasses Greece As Europe’s Riskiest Sovereign<\/a><\/h3>\n\n\n\n

As yields soar optimistically around the world, pushing negative-yielding debt below $12 trillion – the lowest since June, but hey, it’s still $12,000,000,000,000 of insanity, central-planners’ incessant meddling with global markets has sparked another WTF-moment in capital market history.<\/strong><\/p>\n\n\n\n

A mere twelve trillion dollars worth of nonsense debt remains…<\/p>\n\n\n\n

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Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

China Corporate Bond Defaults Nearing a Record<\/p>\n\n\n\n

And, as The FT reports,<\/em><\/a> for the first time since 2008, Greece has lost the dubious distinction of being the riskiest government borrower in the eurozone<\/strong> after its bond yields dipped below Italy’s…<\/p>\n\n\n\n

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Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

Greek bonds have soared this year <\/strong>as investors hungry for yields have snapped up debt from former euro area crisis spots \u2014 a trend that gained further momentum after S&P’s upgraded Athens’ credit rating to BB- late last month.<\/p>\n\n\n\n

As FT notes,  <\/strong><\/em><\/a>the small size of Greece\u2019s bond market<\/strong> – much of its enormous debt load is in the form of low interest loans to the EU and IMF following a series of bailouts – means there is less immediate pressure on government finances compared with Italy<\/strong>, which relies solely on markets to refinance its own huge debt pile.<\/p>\n\n\n\n

\u201cWe still hold some Greek bonds based on our view that the economy has bottomed,\u201d said Chris Jeffery, a fixed-income strategist at Legal & General Investment Management.<\/p>

\u201cBut much more important is the debt structure. There are very few cash flow requirements for the next five years. With Italy, you always have the rollover risk.\u201d<\/p><\/blockquote>\n\n\n\n

5Y Greek bond yields topped 60% in early 2012, they are now below 0.50%!!<\/strong><\/p>\n\n\n\n

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Source: Bloomberg<\/em><\/figcaption><\/figure>\n\n\n\n

<\/a>Finally, as the chart above shows,\u00a0Italian debt has also performed strongly during the summer’s global bond rally,<\/strong>\u00a0but some investors remain wary due to the effects of last year’s political tensions.<\/p>\n\n\n\n

 \u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"

Broke Bond Markets Mounting: Italy Surpasses Greece As Europe’s Riskiest Sovereign As yields soar optimistically around the world, pushing negative-yielding debt below $12 trillion – the lowest since June, but hey, it’s still $12,000,000,000,000 of insanity, central-planners’ incessant meddling with global markets has sparked another WTF-moment in capital market history. A mere twelve trillion dollars worth […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[5185,27531,8262,1167],"class_list":["post-49508","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond-market","tag-european-bond-market","tag-financial-times","tag-greece"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49508","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=49508"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49508\/revisions"}],"predecessor-version":[{"id":49509,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/49508\/revisions\/49509"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=49508"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=49508"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=49508"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}