The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site.

All material subject to strictly enforced copyright laws. © 2020 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Bond Outlook March 21st

Bond Outlook [by bridport & cie, March 21st 2007]

What can investors do when indicators and opinions are so contradictory that they risk behaving like rabbits caught in headlights, unable to decide which way to run? Part of the answer is to ask the right questions. We have our answers, but we can only advance them as our viewpoint, as no one can foresee events accurately. We note that historically we have generally been on the right track, but that the timing has usually been much slower than we imagined, and that the manifestation of an incipient problem has shown up in somewhat differently than we first envisaged. The perfect example of the latter was the sub-prime market proving to be the weakest point in the housing bubble deflation rather than middle-class borrowing.

 

Question 1: Is the problem of the sub-prime market already over? Building starts picked up in January. No losses are being reported by the underwriters of CDOs, no hedge funds have reported huge losses, so perhaps the rot has been stopped in its tracks.

Take out a complimentary trial

Take out a 7 day trial to gain unlimited access to Euromoney.com and Asiamoney.com analysis and receive expertly-curated updates direct to your inbox.

 

Already a user?

Login now

 

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree