Fixed Income

BNP Paribas categorically denies the statements made by a certain anonymous BNP Paribas executive who states that the bank has a liquidity problem in dollars and is participating in the creation of a market in euros to solve the problem.

Corporate earnings have never been higher. Yet, sovereign bond yields have never been lower. Have markets overreacted? Are equities a bargain?

If the market was fully rational in its current pricing, policy makers could actually see current low levels of bond yields as a vote of confidence in their long-term credibility. It would then be rational for policy makers to exploit the lowest funding costs ever

In light of the difficult circumstances surrounding the equity markets, investors are hunting around for alternatives. Unfortunately, savings-book interest rates are limited, as are the returns from safe developed-country government bonds...

The agency backpedaled today, indicating that its director had been wrong declaring that a Eurobond would get the rating of the worst rated country…