Tag: bonds

The Great American Pension Crisis

The Great American Pension Crisis

The potential for a state and municipal fiscal and public pension crisis is a defining issue for the next downturn. If we do have a pension crisis, it will be a systemic issue, both economically and politically. The issue with CalPERS tells you that.

More Thoughts about Japan and US Treasuries

More Thoughts about Japan and US Treasuries

If China wants to accumulate reserves, it will have to buy US Treasuries, even if not every month. Japanese institutional investors are thought to be attracted by the high yields available in the US Treasury market.  But, the wider differentials at short-end make hedging the currency risk more expensive