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  • Greek 10yr bond yield above 9% after downgrade – Spain next?

    Alexander Gloy

    When a picture speaks louder than words: the Greek 10yr bond yield. After Moody’s downgraded Greece to “junk” it fell out of certain government bond indices and hence forced selling was expected. Despite best efforts by the ECB to manipulate Greek bond prices upwards they fell, causing the yield rising to 9.08% (+0.76). Meanwhile, top…

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  • Greece: A Ratings History

    Alexander Gloy

    Everything seemed fine until end 2009. Few people talked about it. The debt was there. The deficits known. But Greece was still able to issue more debt. Until January 2010. S&P woke up first (BBB- is the lowest investment-grade rating; below means “junk”): Source: FT MoneySupply Blog Luckily the country is run by trustworthy politicians who…

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  • Short term US T-bills almost back to zero

    Alexander Gloy

    Look at 1-month yield for US Treasury bills: almost back to zero. Risk is out – everyone wants to be in a (presumably) safe place (even if there is basically no interest). $1,000,000 invested at 0.02% for one months yields less than $20. Pays for the cab ride home. With Libor steady at above 0.5%…

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  • How the Swiss National Bank tried to keep the CHF from appreciating – and failed

    Alexander Gloy

    According to preliminary data foreign currency reserves at the Swiss National Bank (SNB) in May went up to CHF 232bn from 153bn in April. Meaning they intervened with 4bn per work day in May, up from 1bn previously. And now they wasted half of GDP on potentially worthless currencies (Euros, Dollars). Why does the SNB…

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