Asking the Right Questions
All Eyes on Greece, into the Known Unknown!
European equity markets have opened sharply lower following a ‘No’ vote in the Greek bailout referendum yesterday. Yanis Varoufakis, Greece’s finance minister, has resigned to help the Prime Minister reach an agreement, after certain parties requested his ‘absence’ from the meetings. “I shall wear…
Greek ship stranded at sea without a paddle…..
I’ve written on the Greek drama quite a bit recently, as this crisis has been needlessly dragged out and now appears to be heading for a disorderly eruption, the extent of which Europe’s leaders may be underestimating. The decision by the Greek Prime Minister…
Greek crisis talks, adults needed!
Global equity markets struggled to gain momentum last week as Greece continued to dominate the headlines, with the Greek banking system now on emergency life support from the ECB. There was no progress made at the Eurogroup meeting of finance ministers on Thursday, as…
Greek crisis intensifies, the known unknown!
The Greek drama intensified last week causing markets to move erratically. The on-again, off-again deal between Greece and its creditors is fraying on investors’ nerves as the ending is becoming way too close to call. Early week gains on news that an agreement was…
Are Banks Parasites?
I spoke at an investment conference recently where the opening speaker referred to banks as parasites. For me, the word parasite conjures the image of a tapeworm slowly eating my insides (backpacking in Southeast Asia comes to mind), but the word is used derogatively…
If you’re not inside, you’re outside!
The real story of the week came from the European Central Bank (ECB). On Monday evening, Benoît Cœuré, Member of the Executive Board of the ECB, gave a speech at an invitation-only conference, attended by hedge fund managers, where he informed guests that the…
Government bonds signal liquidity warning….
Liquidity is defined as the degree to which an asset or security can be bought or sold in the market without affecting the asset’s price.
Has the world gone mad, or is it me?
These words from Ben Howard, the immensely talented singer-songwriter, ring in my head when I think about how much financial markets have been conditioned to respond to monetary stimulus. While central banks have engineered risk free rates on cash to zero (or negative in…
Weekly Market Recap: 2nd March 2015
Stellar month for equities…. Most of the major equity indices moved higher last week despite mixed economic data and speculation that the US Federal Reserve could move on rate hikes this summer. Last week capped a stellar month for equity markets, with gains of…
Irish 30 Year Bond Issue & Record Low Long Term Eurozone Bond Yields
Irish Government get €4bn 30 year interest only loan at 2% The Irish government came to the market last week with their first ever 30-year bond for sale, maturing in February 2045 and with a coupon payment of 2%. In the lead-up to the auction it was…
