The US Federal reserve has been raising interest rates slowly but steadily over the past 18 months so far, but many banks have been far slower to start paying these higher rates on to customer deposits. HSBC Hong Kong, as shown in the recent screenshot below, still pays 0.25% on savings accounts and 0.5% or […]
One of my favorite books is Ben Graham’s “The Intelligent Investor”. This page from the fourth revised edition (1973) gives a short but fascinating history of some amazing price swings in the not-too-obscure category of foreign government bonds, interesting in part because the government issuers aren’t around in the same form any more (Cuba had […]
Tune in Saturday, Feb 17th at 8:30am to RTHK Money Talk Xtra, where Peter Lewis and I explain convertible bonds and how every day investors can understand and decide whether to invest in them.
Asset allocation is and should be one of the first decisions made in planning an overall investment portfolio. Some investors do their asset allocation accidentally, by only investing in one or two asset classes they know or are sold, or as the result of buying different individual investments one by one with no overall plan. […]
I attended the China International Bond Investor Forum on October 26th, 2017 in Tsuen Wan, Hong Kong, and despite its remote location, was suprised it was so lightly attended (maybe 50 total, with over half the seats empty) given the size and importance of the Chinese bond market. The main takeaways include: The China bond […]
On October 24th, 2017, GFM’s Tariq Dennison presented an intensive 1-day repo workshop to over 60 professional bond traders in Manila, Philippines, with the goal of developing an active and liquid repo market for local Philippine peso bonds. “Repo” is short for “sale and repurchase agreement”, and is the main way banks and funds finance […]
I wasn’t too surprised to hear Kenya recently offered KES 150 million (US$1.5 mio) in government bonds exclusively through mobile phones. These bonds are supposed to pay 10% interest tax free (vs 14% on their benchmark institutional 10 year bonds) and be available in denominations as low as KES 3,000 (US$30), and this is hopefully […]
I love long-term charts, and recently started re-reading the 5th edition of Jeremy Siegel’s classic “Stocks for the Long Run“. Being naturally curious, I also like to keep an eye on how investments in “Bonds for the Long Run”, “Balanced Portfolios for the Long Run” and “Alternative Investments for the Long Run” would do. Siegel’s […]
MarketWatch posted this bar chart showing the relative size of stock market vs bond market assets by category as of 2014. Roughly, it shows a total pie of about US$300 trillion invested in these “traditional assets” of stocks, bonds and loans, with roughly half in bonds, just under a quarter in stocks, and the rest […]
Here is a chart showing the counterintuitive decade when “low yield beat high yield”, that is, low-yielding Japanese Government Bonds (JGBs) with a starting yield of 1.2% outperformed Australian government bonds with a much higher yield over 5%.