Category Archives: Government Debt
Who Else Bought BlackRock’s LDI Swindle Products?
The recent collapse of the United Kingdom (UK) gilt market’s long maturities, which required Bank of England (BOE) purchases of tens of billions of pounds of long gilts to stem a Lehman moment, shined a spotlight on something called liability driven investing (LDI). Continue reading
Why Bonds Are Behaving Like Risky Assets
Since 1976, there have been eight years in which the S&P 500 declined. Bonds softened the stock market losses every time. When stocks went down, bonds went up. Since 1987, Alan Greenspan, and the Greenspan put, made sure of it. Yet, this time is different. Over the first nine months of 2022, bonds and stocks have fallen in tandem. And as stocks have fallen, Fed Chair Powell has hiked interest rates. Continue reading
How Public Pensions Turn Cities into Unlivable Hellholes
Nearly 20-years ago, while providing consulting services to a county sanitation district, we crossed paths with a grumpy fellow who had only a secondary interest in providing industrious work. His primary interest was deliberating on his upcoming retirement; he could bend your ear off. Continue reading
The Decline and Fall of a High Finance Wizard
Citron trusted his clairvoyance. He believed he knew what the Fed was going to do before the Fed even knew. His apparent acumen had garnered him the highest reputation. He was regard a wizard of high finance. Continue reading
