Would you buy a bond that outlives you?

Why would anyone want to buy a bond that last longer than they do?

These ultra-long-dated assets fell out of favor in the fallout from the financial crisis, as investors shifted to shorter-duration bonds to protect them against unpredictable spikes in interest rates. But now the “century bond” is returning to prick investor interest.

Canada has become the latest to sell long-dated debt, with its auction of 50-year bonds. At the sale of bonds maturing in 2064 earlier this week, the Canadian government doubled the minimum target size of the sale, raising $1.36 billion.

Century bonds tend to be issued by governments and well-established companies, but both have to pay a premium to investors over a 30-year bond, which tends to the longest dated debt available from most firms.

 

http://www.cnbc.com/id/101631721

Related Posts

  • 80
    On Thursday Mohamed A. El-Erian was on CNBC`s Halftime Report and he said something that a lot of people have been saying regarding the bond market, and it needs to be cleared up, because the amount of poor understanding regarding the bond market by people who make their living, i.e.,…
    Tags: bond, financial, trading
  • 78
    Bill Gross’ spectacular fall from the top of the bond market has put tens of billions in play at a time when minuscule yields demand a fixed-income superstar. A brilliant, battle-scarred billionaire, Jeffrey Gundlach, stands ready to be coronated. Bond manager Jeffrey Gundlach is wearing a white T-shirt, faded blue…
    Tags: bond, $, trading
  • 77
    All it takes is a few mouse clicks to buy shares in the Scout Unconstrained Bond Fund (SUBFX), an exchange-traded fund that tracks a concoction of debt tied to the government, financial firms, mortgage pools, and other entities. And all it takes is a few mouse clicks to sell—something that has begun…
    Tags: bond, bonds, financial, interest, rates, $, crisis, raising, year, target
  • 75
    Bond investors hungry for yield have pushed further and further into high-risk territory and Pimco sees five warning signals that credit markets are getting overly frothy. "The lower reaches of the credit market have become particularly stretched," Christian Stracke, global head of Pimco's credit research group, said in a note last…
    Tags: bond, week, investors, trading
  • 69
    (Reuters) - Argentina said on Tuesday it would meet with a mediator for the second time this week in the country's dispute with "holdout" investors, lifting market hopes for a deal needed to avoid another painful debt default. With the economy already in recession, President Cristina Fernandez's cash-strapped government has…
    Tags: bonds, debt, government, investors, interest, trading, bond

Thomas Piketty and his Critics

In the 1790s, Frederick Eden, concerned about the economy and the realities of the poor, went into the British countryside and began to collect data on household budgets for poor agricultural laborers. He collected budgets himself, got additional data from “respectable clergymen,” and hired others to get even more. The results were published in a major, groundbreaking work, The State of the Poor, in 1797. In the end, Eden had eighty-six families worth of data.

It is easy to overlook the achievement of Thomas Piketty’s new bestseller, Capital in the Twenty-First Century, as a work of economic history. Debates about the book have largely focused on inequality. But on any given page, there is data about the total level of private capital and the percentage of income paid out to labor in England from the 1700s onward, something that would have been impossible for early researchers like Eden to assemble or comprehend. Capital reflects decades of work in collecting national income data across centuries, countries, and class, done in partnership with academics across the globe. But beyond its remarkably rich and instructive history, the book’s deep and novel understanding of inequality in the economy has drawn well-deserved attention and criticism. By understanding the initial debate over the book, we can examine what is at stake in how Capital is understood.

http://bostonreview.net/books-ideas/mike-konczal-thomas-piketty-capital-studying-rich

Related Posts

After Alibaba IPO US Giants may stop ignoring chinese rivals

The largest technology stock offering in history is looming, but few in Silicon Valley seem to care.

http://www.nytimes.com/

Related Posts

  • 87
    The dichotomy of reaction to the Trump election victory from the mainstream media versus financial markets is truly extraordinary.
    Tags: usa
  • 81
    For the first time, New York City has surpassed Moscow for the most billionaire residents, according to the latest global rich list from Hurun, a group that tracks wealth in China. According to Hurun, New York added 14 billionaires this year, bringing its total to 84. Moscow, meanwhile, lost a…
    Tags: usa
  • 68
    Jordan Belfort, whose memoir “The Wolf of Wall Street” was turned into a film by Martin Scorsese, expects to earn more this year than he made at his peak as a stockbroker, allowing him to repay the victims of his fraud. “I’ll make this year more than I ever made in my…
    Tags: usa
  • 65
    If Trump commits to introducing positive changes such as cutting taxes and boosting infrastructure spending, then it will be “happy days” again for investors What did portfolio managers said about Trump area? There are two spectacularly different scenarios for stocks under the new president, depending on which Trump shows up…
    Tags: usa
  • 59
      For investors, the key to 2017 will not be Brexit, nor the French elections but rather USA bond yields. If the 10-year yield breaches 3pc we would expect major dislocations in many markets and a huge repricing of assets across the globe.
    Tags: usa

Faulty technology triggered CME trading outage

The worst-ever trading outage on the world’s most important agricultural markets was triggered when sophisticated technology tripped over a trading halt in a single market, the executive chairman of exchange operator CME Group Inc told Reuters.

The April 8 outage stopped electronic trading in 31 agricultural markets that influence global prices for food staples such as wheat, corn and pork, and sent a flood of traders into CME’s normally deserted open-outcry futures pits to execute transactions.

The electronic trading platform handles around 95 percent of the volumes in grain futures on a typical day, and market participants have been in the dark about the cause of the failure, with CME only saying a “technical issue” was to blame.

The unusual outage came from a technical fault that involved “implied technology” systems, which can facilitate the execution of spread trades, CME Executive Chairman Terrence Duffy said in an interview this week.

http://www.reuters.com/

Related Posts

  • 80
      For investors, the key to 2017 will not be Brexit, nor the French elections but rather USA bond yields. If the 10-year yield breaches 3pc we would expect major dislocations in many markets and a huge repricing of assets across the globe.
    Tags: markets, usa, trading
  • 67
    EUR/USD fresh highs after breaking through 1.3650 resistance and 50DMA at 1.3655  
    Tags: usa, trading
  • 61
    David Matsuda had never been a mariner or an administrator before he became the head of the U.S. Maritime Administration in 2009. He had been a government lawyer and a congressional staffer, focusing on railroad issues; the ringtone on his phone was the choo-choo of a train. Matsuda had never been…
    Tags: usa, trading
  • 61
    This month marks the fifth anniversary of the current bull market on Wall Street, making it one of the longest and strongest in history. Yet U.S. stock ownership is at a record low and less than half of Americans trust banks and financial services. And in the last two weeks,…
    Tags: market, trading, told, group, global, futures, usa
  • 57
      When even hedge funds are overwhelmingly on the same side of an investment as the broader market, you know it's a crowded trade. This is where the euro finds itself going into 2015. Traders, investment banks, asset managers and the so-called "smart money" of hedge funds are all betting…
    Tags: market, traders, usa, trading