Britain Faces Another Showdown with the Bond Market

Britain faces another showdown with the bond market

Normal British people don’t spend much time thinking about the Japanese central bank. Normal Japanese people probably don’t, either, but decisions taken in Tokyo can have significant effects for you. It was in Japan that the great quantitative easing experiment began, and as I’ve argued at length, the massive distributional effects this had on wealth reshaped politics and culture in the UK, the US and Europe. But that experiment is far from over…

High-Yield Bond Market Signals Investor Optimism Despite Economic Headwinds

The high-yield bond market is sending a clear signal: investors are optimistic about the economic outlook. Yields on these bonds, issued by companies with lower credit ratings, have been falling, indicating that investors are not demanding higher compensation for the risk they’re taking. This calm in the high-yield bond market is notable, especially given the potential economic headwinds… Source