Everything moved. It’s a totally connected world. In six charts.
Mohamed El-Erian has second thoughts.
My guess is investors will soon regret that decision.
Never before has an agency of a state anywhere in the world pleasured speculators with such stupendous windfalls.
Bonds with long maturities are sitting ducks – and thus ideal.
Junk bonds in “extreme overvaluation,” covenant quality drops to record low, old money getting whacked as new money pours in.
And he offers an insanely good chart of the Hot Money.
Central banks have succeeded in generating a planet-wide mania.
I can’t even begin to think of all the unintended consequences this will bring about.
US junk goes in. Plump, yen-denominated, highly rated bonds come out.