Tuesday morning news drop
Ain’t So Bad For the 11th time since 1994, long-term bonds are in a 10% drawdown. The most interesting thing about this chart is that an all-time high followed all of them. And just eyeballing it, it looks like it didn’t take too long for investors to get their money back.
Bond investors got. (Irrelevant Investor)
Macro Thinking There is a lot of buzz going around about the size of the latest Covid relief bill and the national debt. $1.9 Trillion is a lot of money. Democrats call it the minimum amount of support needed to help individuals struggling through the pandemic, while Republicans call it a “liberal wish list” of pork barrel spending. I think we can be confident that the truth lies in between these two analyses. (Belle Curve)
From Bowie Bonds to Pipe: Financing Recurring Revenue The idea that a predictable set of cash flows can be traded for cash proved alluring. A special financial structure called a whole business securitization emerged to channel sticky cash flow streams to investors. Today, it is used by companies which generate steady streams of income without the tangible assets that would provide the backbone for more conventional securitizations. (Net Interest)
Why Bond Investors (and Wise Men) Got Inflation Wrong Recent history has tended to mock the financial worrywarts, and for understandable reasons. (Bloomberg)
How Facebook got addicted to spreading misinformation The company’s AI algorithms gave it an insatiable habit for lies and hate speech. Now the man who built them can't fix the problem. (Technology Review)
The Housing Boom That Never Ends Already Wiped Out All the Short-Sellers Real estate dominates Canada’s economy to an alarming degree (Bloomberg)
Are investors driving the market? Prices are ripping upwards, and it’s natural to wonder where all that demand suddenly came from. It’s true that the market reversed trend and started heating up in mid 2019, but low interest rates and other pandemic impacts drastically accelerated that trend. (House Hunt Victoria)
