Saudi Arabia once burned through the bond market on par with demand for Argentina’s paper. During the 2016-17 globally synchronized growth-inspire Eurobond binge, the country made up for its lost oil revenues (oil crash and all) with dollar-denominated, offshore debt flotations. These merely stabilized the country’s forex reserves after they had collapsed (by a third) alongside benchmark Brent crude prices [...]
As of trading on Friday, federal funds for the third time is now back to above where all this began. For much of 2017 and Reflation #3, the effective federal funds rate (EFF) remained steady at 16 bps above the RRP “floor.” Apart from month-end dumpings, it was consistent and predictable; the best of times, or at least what passes [...]
It’s amazing how in a world of supposedly separate, closed economies they all seem to congregate anyway toward the same events. In early 2000, the US dot-com bubble ran into its own contradictions, the rationalizations holding it together no longer so tempting to what was for years insatiable investor appetite. Not even a year later, a mild recession began. What [...]
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