Has Zirp broken the Bond Market?

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Has Zirp broken the Bond Market?

Apr 24, 2019 | 00:26 1 https://www.google.com/url?sa=i&sour...56172636964929

Mr Nagai said the amplification of macroeconomic “megatrends” afflicting the industry had driven the plan.

“There is no liquidity any more so the market is dead because of the central bank’s monetary policy,” said Mr Nagai. “The fixed-income market is dead due to the zero interest rate.

“Still, we expected that it would normalise or return modestly at some point. But we began to realise . . . last November or December that it won’t normalise or return for some time.”

The ramifications of a broken fixed income market are massive, 40% of most pensions are required by law to hold govt bonds.... friends say rates can't go up.... yeah well the writing is on the wall. They are going up... there's a ton of articles floating around about pensions in trouble this week. Might be time to prep the basement for mom and dad because govt caring for the elderly is over. The biggest issue when rates double will be emerging market countries defaulting because they also borrowed in USD while rates were low as was USD in '09~. Lifestyles are in for a radical adjustment. Reply With Quote