Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

F T Article: Time To Get Out Of Corporate Bonds

Recommended Posts

http://news.ft.com/cms/s/236c2502-fc66-11d...00779e2340.html

Lincoln frets over rate rises

By Ellen Kelleher in London

Published: June 15 2006 03:00 | Last updated: June 15 2006 03:00

Jim Cielenski, manager of Lincoln's
£51.6m Corporate Bond
trust, has two concerns at the moment. His biggest is that the world's central bankers will weigh down the markets by raising interest rates too much.
Markets believe the Bank of England is leaning towards a rate increase and Japan and the US are also showing signs they might tighten their monetary policies.
"When interest rates rise sharply it is bad for credit quality and has a terrible impact on the amount of liquidity in the global financial system," he says.
Mr Cielenski also frets that the investment grade companies he invests in could undergo leveraged buyouts and become high-yield companies, a move that would depress the value of these bonds.

With higher IR a virtual given now it is time to get out of corporate bonds which are thankfully more liquid than property investments which will prove harder to unload in a higher IR environment due to depressed yields.

Share this post


Link to post
Share on other sites

http://news.ft.com/cms/s/236c2502-fc66-11d...00779e2340.html

[/b] trust, has two concerns at the moment. His biggest is that the world's central bankers will weigh down the markets by raising interest rates too much. Markets believe the Bank of England is leaning towards a rate increase and Japan and the US are also showing signs they might tighten their monetary policies.

Another financial coup for the FT - how many days after Japan and US have raised rates?

Its no wonder the financial system is ****, with geniuses like this running the show.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 333 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.