We had some important releases last week… but not too many surprises. The Fed released their minutes from the last meeting, giving the stock market hope since some policy makers
It seems like only yesterday that Detroit filed for bankruptcy. It’s actually been more than two years since the initial filing, and almost a year since a judge approved the
Despite the Fed’s talk of a rate hike as soon as next month, long-term U.S. Treasury yields continue to trend lower as investors seek the safety of U.S. Treasury bonds.
Historically, the risk of default appears exceptionally low. But the historical numbers don’t tell the whole story. There are two big caveats.
The Fed has backed themselves into a corner.
When these bonds deals go bad, as they so often do, it’s these folks who feel the pain.
If I asked you to lend me money for five years, what rate of interest would you charge? 5%? 3%? How about zero? Does zero work for you? It works