{"id":8476,"date":"2015-05-26T06:11:23","date_gmt":"2015-05-26T11:11:23","guid":{"rendered":"http:\/\/olduvai.ca\/?p=8476"},"modified":"2015-05-26T06:11:23","modified_gmt":"2015-05-26T11:11:23","slug":"the-potential-bond-crisis-most-people-have-never-heard-of","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=8476","title":{"rendered":"The potential bond crisis most people have never heard of"},"content":{"rendered":"<div class=\"story-headline\">\n<h3 class=\"story-title\"><a href=\"http:\/\/www.cbc.ca\/news\/business\/the-potential-bond-crisis-most-people-have-never-heard-of-don-pittis-1.3086266\" target=\"_blank\">The potential bond crisis most people have never heard of<\/a><\/h3>\n<\/div>\n<p class=\"story-deck\"><strong>While 007 goes from strength to strength, his financial namesake may be heading for a fall<\/strong><\/p>\n<p>&#8220;The name&#8217;s Bond,&#8221; goes the famous line.\u00a0But in this case, it&#8217;s not\u00a0James Bond. While nearly everyone knows\u00a0every detail about\u00a0the 007 super\u00a0spy, his lesser-known financial namesake is many\u00a0times more important.<\/p>\n<p>The James Bond franchise is expected to continue\u00a0strongly with the autumn arrival of\u00a0Daniel Craig speeding through the streets of Rome\u00a0<a href=\"http:\/\/www.cbc.ca\/news\/arts\/spectre-new-james-bond-film-set-for-2015-release-1.2860001\">in<em>SPECTRE<\/em><\/a>, but those in the financial\u00a0know worry about the spectre of\u00a0the other kind of\u00a0bond heading for a crash.<\/p>\n<p>Four out of five bond traders worry the market could collapse in a disorderly sell-off.<\/p>\n<ul>\n<li><a href=\"http:\/\/www.cbc.ca\/news\/business\/bank-of-america-forecasts-another-rate-cut-in-canada-1.3076304\">Bank of America forecasts another rate cut for Canada<\/a><\/li>\n<li><a href=\"http:\/\/www.cbc.ca\/news\/business\/impact-of-low-oil-and-dollar-has-yet-to-be-tallied-completely-poloz-says-1.3079055\">Impact of low dollar and oil has yet to feed into Canadian economy: Poloz<\/a><\/li>\n<\/ul>\n<p>And while Bond villains jump right out at you,\u00a0bond villains are hard to finger.<\/p>\n<p>At their\u00a0most basic\u00a0level, bonds are anything but complicated. They are simply a legal\u00a0arrangement where one person agrees to lend money to someone else\u00a0for a fixed length of time\u00a0at a fixed rate of interest.<\/p>\n<h2>Popping the bond bubble<\/h2>\n<p>In the public imagination, if we think\u00a0of them at all, bonds are the epitome of safety.\u00a0Which is why it is strange to read in one of the world&#8217;s most reliable business publications, the London\u00a0Financial\u00a0Times, that experts are terrified of an imminent\u00a0crash in bonds that could destabilize the global economy.<\/p>\n<div class=\"figure col4width floatright\"><img decoding=\"async\" src=\"http:\/\/i.cbc.ca\/1.3086633.1432577528!\/fileImage\/httpImage\/image.png_gen\/derivatives\/original_300\/canadian-30-year-bond-chart.png\" alt=\"Canadian 30 year bond chart\" width=\"100%\" \/><\/p>\n<p class=\"figure-caption\">The interest rates on Canadian bonds have been falling for decades, meaning existing bonds have risen in value. That could be about to change. (Pete Evans\/CBC)<\/p>\n<\/div>\n<p>&#8220;This market could pop,&#8221; leading bond trader Brad Crombie<a href=\"http:\/\/www.ft.com\/intl\/cms\/s\/0\/cedfb85c-d0a3-11e4-a840-00144feab7de.html#axzz3bA1B69hx\">told the\u00a0FT<\/a>. &#8220;There is more tension and anxiety over valuations than for a long while.&#8221;<\/p>\n<p>&nbsp;<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The potential bond crisis most people have never heard of While 007 goes from strength to strength, his financial namesake may be heading for a fall &#8220;The name&#8217;s Bond,&#8221; goes the famous line.\u00a0But in this case, it&#8217;s not\u00a0James Bond. While nearly everyone knows\u00a0every detail about\u00a0the 007 super\u00a0spy, his lesser-known financial namesake is many\u00a0times more important. [&hellip;]<\/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":[5700,88,3544,4936,4899,431,500,570],"class_list":["post-8476","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bond-collapse","tag-bonds","tag-cbc","tag-don-pittis","tag-economic-bubble","tag-interest-rates","tag-market-collapse","tag-news"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8476","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=8476"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8476\/revisions"}],"predecessor-version":[{"id":8477,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/8476\/revisions\/8477"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8476"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8476"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8476"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}