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. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Bond Outlook June 17 2009

Moving from overpriced government bonds to quality corporates, our recommendation last October, is now commonplace. The Madoff scandal has very negative implications for New York and for hedge funds.

Bond Outlook [by bridport & cie, June 17th 2009]

Suppose a person with a serious lung disease catches flu, and undergoes intensive treatment for only the latter ailment; does overcoming it mean their underlying problem has been solved? The same question begs itself of the US and related economies with regard to the much-trumpeted resolution of the banking and financial market crisis. Is the crisis the cause or merely the symptom? Our sick person’s flu may come as a result of his lung problem, but it is not the root cause. Whether the financial crisis has really been resolved is questionable so long as banks are not adopting normal lending practices. However, of greater import, is whether the underlying problem is being addressed and on the way to a solution.

We define that problem as “spending beyond one’s means” (mainly by the USA) with all that implies for global imbalances, household indebtedness, and its ultimate manifestation of a burst housing bubble leading to the present crisis.

Unfortunately, the underlying problem has not been solved.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

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