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Reward free

Posted: Mon Jul 18, 2016 8:37 am
by BONDbear
When plotted against VXO (volatility of S&P 100) SJB is far weaker than the volatility index that actually went below 10 last week. The reach for yield continues unabated. While junk bonds trade much like stocks, with rates at an all time low, seems a double stigma could attach to junk.

I suppose all this borrowing to buy back stock and pay out rich bonuses will never backfire in the ENDLESS reward free, risk environment!

Re: Reward free

Posted: Mon Jul 18, 2016 4:37 pm
by Permabear Doomster
hello bondbear

re: yield. Tens of trillions of capital are clearly desperate to find a yield.... any yield.

These are truly bizarre times... as the BoE is set to cut in August or September, and I'd guess the PBOC will cut at least once or twice before year end.

Other than bonds... that only leaves equities for the longer term.

re: buy backs.... its the worse use of precious cash by corporations, and is of course done to kick a given stock price higher. For the directors will tens of millions of stock options... what a great policy initiative huh?

Re: Reward free

Posted: Mon Jul 18, 2016 4:47 pm
by BONDbear
Certainly equities could suffer if rates go up. But we shall see--junk bonds trade much like stocks--junk sovereigns are truly bizarre freaks--dependent on complete faith in bankers, or at least endless mulligans for them.

Enjoy your commentaries!!

Re: Reward free

Posted: Mon Jul 18, 2016 7:19 pm
by Permabear Doomster
Thanks. I do hope to keep at least some presence here for the long term.

I'm still in early days of this forum, and clearly, I need to configure things so I don't have to approve every post!

Re: Reward free

Posted: Mon Aug 01, 2016 9:50 pm
by Benjamin
This is a very cool development

Reward free--another twist

Posted: Fri Aug 12, 2016 5:40 am
by BONDbear ... 81116.html

From above, interesting chart here: ... 1116/3.gif

Silver in 2016 dollars--interesting how the first years on this chart from just after the USA civil war through WW1 has a positive influence on the average, when the govt supported price to create or try to create inflation. Looking at the chart, how does something like this protect you? I mean I own it physically--fine you may get a spike, but how on god's green earth can you look at the chart and see any kind of stability, other than maybe <$10 from 1920 to mid 1960s. And it even got there again through the 90s.

LOL--better hope Ted Butler is right and JP Morgan has cornered the market and will drive this thing to another big spike--its the only way really!

"The circumstances surrounding JPMorgan are very much different from that of the other commercials. Because JPM holds so much physical metal, it is immune from damage to the upside. That cannot be said of the other commercials who appear to be taking it in the teeth. And, of course, it is the difference at the core of the double cross premise. Should JPMorgan not join in with the other commercials as short sellers of last resort, it’s hard for me to see how the commercial short selling scam in COMEX silver and gold doesn’t unwind." ... rning-tide