Bonds are in the news these days, and not necessarily for bullish reasons. Between the threat of rising interest rates and the possibility of a Treasury default in the US, the notion of fixed-income as a safe haven is under pressure. But while it’s tempting to lump all bonds into one category, the reality (as usual in the capital markets) is far more nuanced. Indeed, if someone gives you their view on the “bond market,” your first question should be: Which one?
Daily Archives: October 9, 2013
Janet Yellen… In Her Own Words
President Obama today is expected to nominate Janet Yellen, who’s currently vice chair of the Federal Reserve, to succeed Fed chairman Ben Bernanke, whose term ends in January. The confirmation hearings in the Senate may prove to be rocky, given her critics among the hawks. In some respects, she’s more dovish than Bernanke. But her nomination, overall, would be a relatively safe choice, particularly at this point, given the uncertainty looming over the economy thanks to the budget battles in Washington and the potential for a Treasury default later this month if Congress doesn’t raise the debt ceiling. It doesn’t hurt that she topped the list for accuracy among Fed forecasters, according to a recent study by The Wall Street Journal (“Federal Reserve ‘Doves’ Beat ‘Hawks’ in Economic Prognosticating”).