Bonds 04 (Jul 15 - Aug 17)

[winston]

China Is Selling US Treasuries and the Impact Could Be Huge

By Valentin Schmid

Source: Epoch Times

http://www.theepochtimes.com/n3/1737965 ... campaign=1

[winston]

Mystery Buyer Of US Treasurys Revealed

By Tyler Durden

http://www.thetradingreport.com/2015/09 ... -revealed/

[winston]

Bonds (10 year): 2.17% versus 2.11%.

Gapped right back down after the strong upside gap Thursday.

Appears as if bonds cannot make up their mind, but sold on Yellen's 'sometime this year' rate hike speculation.

Source: Investment House

[winston]

Is The Chinese Bond Bubble About To Burst?

By Isabella Zhong

Source: Barron's Asia

http://blogs.barrons.com/asiastocks/201 ... -to-burst/

[winston]

"Junk" bonds head lower… sector fund HYG hits a new 52-week low.

[winston]

Once the Biggest Buyer, China Starts Dumping U.S. Government Debt

Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy

Central banks around the world are selling U.S. government bonds at the fastest pace on record, the most dramatic shift in the $12.8 trillion Treasury market since the financial crisis.

Sales by China, Russia, Brazil and Taiwan are the latest sign.

Source: WSJ

[winston]

Junk Bonds Still Not Priced Richly Enough

By Martin Hutchinson

Source: Wall Street Daily

http://www.thetradingreport.com/2015/10 ... ly-enough/

[winston]

The US economy is at risk, and the warning is coming from 'the lowest of the low'

By Sam Ro

Source: Business Insider

http://finance.yahoo.com/news/us-econom ... 31217.html

[winston]

What China selling US Treasurys really means

By Ron Insana

Source: CNBC

http://finance.yahoo.com/news/china-sel ... 00250.html

[winston]

Bond Investors Are Ignoring This Dire Warning... By Jeff Clark

Danger ahead...

That's the warning investing legend Carl Icahn gave last month about the high-yield bond market. Icahn warned about the valuation concerns, liquidity problems, and bankruptcy risks in these bonds. (Icahn's video does a terrific job of explaining the potential problems. If you haven't seen it, you can watch it here.)

Icahn's comments ignited a firestorm of selling pressure that caused high-yield bonds to drop to their lowest level in two years.

But since then, these bonds have put on an impressive bounce...

Take a look at this chart of the iShares iBoxx High Yield Corporate Bond Fund (HYG)...

Please Enable Images to See this

HYG bottomed within one day of Icahn's comments. These bonds have recovered almost everything they lost in September. The sector is close to making a new high for the year.

Don't be fooled by the move... There are still significant risks to owning high-yield bonds.

High-yield bonds are corporate debt that is rated lower than investment grade. In other words, these are the bonds that corporations will have a difficult time making payments on when times are tough. If there's any problem in the economy, these bonds could easily default.

As a result, high-yield bonds usually pay a much higher interest rate than their investment-grade counterparts to compensate investors for that risk.

But investors aren't getting paid for that risk right now. The spread between investment-grade-bond yields and junk-bond yields remains among the lowest in history.

That hasn't stopped investors from piling in, though. Icahn says we have $2.2 trillion in high-yield bonds right now, up from $1 trillion five years ago.

Reality is going to set in soon... just like it did following the dot-com and housing busts. And high-yield bond investors are going to get hurt.

In short, if you own any high-yield bonds, get out now.

Source: Growth Stock Wire