The desperation of high yield investors has reached heights not seen since the late 1980s. Those scrambling for yield at any cost are snapping up pay-in-kind note offerings—perhaps one of the most toxic financial instruments ever designed. These notes pay coupons in additional notes rather than in cash. Does this mean the high yield market is ready to crash? What is my exposure if it does?
Japan lapsed into recession last year—its fourth in the past 13 years—according to figures its government released in February. Is there any hope for the country, or should my investment strategy in Asia be strictly ex-Japan?
Lending rates continue to ascend, with three-month dollar Libor hitting 2.92 percent at the end of February. Will my leveraged portfolio positions continue to perform in a higher rate environment, or is it time to unwind them?
Fears of encountering conflicts of interest between its private equity fund and its banking clientele spurred JP Morgan Chase to spin off most of the former in March. Will other firms follow suit? What does this mean for the funds in which I invest?
The dollar tanked after Korea’s central bank announced that it plans to diversify its foreign currency reserves. Because the central banks of Korea, Japan, China and Taiwan are the biggest sources of demand for the greenback, which they use to buy U.S. Treasuries, what will this mean for the dollar and U.S. interest rates?
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