Severak US companies are able to borrow cheaper than the US government. Jack Malvey calls this “exceedingly rare”. Jack Malvey was Lehman Brothers' chief fixed-income strategist. Since Jack Malvey helped bring about Lehman Brother's spectacular failure, Jack's opinion is worthless.
My opinion is this is a warning to the US government to stop the deficit spending.
Obama Pays More Than Buffett as U.S. Risks AAA Rating
By Daniel Kruger and Bryan Keogh
March 22 (Bloomberg) -- The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama.
Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market.
...
No comments:
Post a Comment