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To avoid interfering with Treasury issuance, the Fed would probably keep the maturity of such bills below 30 days.8.8
But yields began rising later in the morning as the stock market advanced, Secretary of State Colin L. Powell spoke to the United Nations Security Council, and, possibly, the expected increases in Treasury issuance began to weigh on the market.
When spreads started to move in October, fixed income market and CLOs, in particularly, were wacked". The $147 billion Treasury issuance Whalen mentioned was a big market mover, particularly in such thin holiday trading markets.
When I asked Christopher Whalen, Chairman of Whalen Global Advisors, what were the major causes of market volatility in December, he responded "Basically the unwind of [quantitative easing] QE plus the bigger factor on increased Treasury issuance has hurt liquidity and drove volatility.
We respect that those able to hold government bonds to maturity face no loss of principal (though inflation impacts purchasing power) and the 10-Year U.S. Treasury issuance in August 2016 offered a 1.50% annual coupon, but folks unwilling or unable to hold until 2026 will have endured a total return of -8.19% in 20 months if they sell today.
We respect that those able to hold government bonds to maturity face no loss of principal (though inflation impacts purchasing power) and the 30-Year U.S. Treasury issuance in August 2016 offered a 2.25% annual coupon, but folks unwilling or unable to hold until 2046 will have endured a total return of -12.42% in 20 months if they sell today.
Similar(51)
Like other non-Treasury credit markets, CMBS issuance fell off a cliff in 2008-2009.
Obligations of Commodity Credit Corporation; issuance; sale; purchase; redemption; etc.
The bank says $450 billion of synthetic CDO issuance occurred last year, more than double the 2005 level.
Obligations of Commodity Credit Corporation; issuance; sale; purchase; redemption; etc. 15 U.S. Code § 713a 4.
Mexico and Malaysia both saw IPO issuance rise several-fold over 2011, with their largest flotations ranking third and fourth place globally.
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