Questions tagged [bonds]
Bond markets and legal aspects of bonds. For government debt use the tag "government debt" unless the fact the the debt is in the form of bonds has significance.
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Why are governments so afraid of bond market speculation?
Often we hear these days how governments are very restricted in what they can do, because, essentially, the bond market has to approve with the course of action. But why is that? Isn't the coupon ...
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Deficit and Treasury
Does the government reconcile the Deficit to Treasury Bond Issuance? Is this information public prior to the Bond Issuance Program? What are the related sources of information?
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Why do governments seem committing everything to avoid a bankruptcy?
Here I understand under "state bankruptcy" that the government can not (won't) repay expired state bonds.
Being souvereign over its own territory, they can do it.
With it, people having ...
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Can rounds of deleveraging by banks lead to an avalanche of selling?
In a recent paper by Cont and Schaanning "Fire Sales, Indirect Contagion and Systemic Stress Testing", we see systemic risk emerge from banks facing a shock to their portfolios, and so they ...
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LDI/Gilt Yield Spike Crisis September 2022 - LASH Risk/Collateral question
An August 2024 Bank of England 'staff paper' defined a 'Liquidity after Solvency Hedging' risk inherent in Defined Benefit Pension Funds. A 'Liquidity' risk category, it states the September 2022 Gilt ...
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What development in the bond market could be Trump talking about with "yippie"?
Trump says he paused the higher tariffs with most countries he had just introduced after the bond market got "yippie" (if that's the spelling -- Oxford defines that word as "a member of ...
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Macroeconomics question on bonds
When the federal government issues a new bond in order to fund deficit spending, what will happen to the money supply?
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Why would a decline from 5.24 per cent to 3.53 per cent be considered a positive reward on the part of the bond market?
I came across the next lines:
That does not mean, however, that the bond market rules the world in the sense that James Carville meant. Indeed, the kind of discipline he associated with the bond ...
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How does inflation wipe out a government's debt to bond-holders?
In the book The Ascent of Money, the British historian Niall Ferguson explains that hyperinflation can indeed wipe out people's debts including the government's debt:
As in the Weimar Republic, ...
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Are deficits and devaluation good or somehow benefit the capital owners or investors who buy bonds?
In Nial Ferguson's The Ascent of Money, when he is talking about one of the many Argentinian economic messes during the last century, he mentions something that I find pretty weird:
Owners of capital ...
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Long term bond yields determinants
Can you pls explain why long-term nominal interest rates should be around of the level of nominal potential GDP?
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Determinants of long term interest rates
Can you pls explain why long-term nominal interest rates should be around of the level of nominal potential GDP? What would be the macroeconomic forces behind it?
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Why if Saudi Arabia will sell off European debt holdings then euro will be depreciated?
I read news about Saudi Arabia and I have a question.
How to explain that if Saudi Arabia will sell off European debt holdings (+Euro bonds) then euro will be depreciated?
My attempts to explain don't ...
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Bond Prices, Interest rates, Demand for bonds
I know about the inverse relationship between bond prices and interest rates. However, when we talk about Liquidity Preference Theory, there we mention that an increase in interest rates leads to more ...
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Have governments ever defaulted on its public domestic debt or treasury bonds?
Recently, some countries have experienced hyperinflation such as Lebanon, Zimbabwe, and Venezuela.
Has there ever been a time when a government defaulted on its treasure bond payments due to a country'...
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