100-Year Bonds: For Those Who Love Convexity

OTTAWA — Finance Minister Jim Flaherty may be cracking down on banks offering low rates to consumers, but his own government seems to be looking for the cheapest debt it can find. In its Budget 2013, the government says it’s ready to pounce on “continued low historic rates” and is now assessing the potential of issuing bonds for 40 years  – or  even longer.

Ravi Nagarajan submits:Who would want to purchase a bond that will not mature until years after any purchaser is long dead?

Inquiring minds are watching economic activity in Slovenia following an official denial regarding bailout possibilities as noted in Slovenia Rules Out Bailout; Translation: "Slovenia Bailout Coming Right Up" Slovenia Unemployment and Youth Unemployment

Yesterday, Argentina's lawyers made closing arguments in what some are calling the 'the debt trial of the century.' Today, the country's bonds are committing suicide.

Large corporate investors are gobbling up thousands of distressed homes nationwide, in isolated cases squeezing out first-time buyers, but lifting the weak housing market on the road to recovery.   Banks and private equity firms started adding single-family houses to their portfolios five years ago at the height of the real estate collapse, but became even more aggressive when Fannie Mae decided bulk sales of foreclosures were the best way to help stabilize metropolitan areas hardest hit by the crisis, according to both statistics and participants in the industry.

EU officials have hatched a plan to make banks and bondholders take losses for risks, not now of course, but after 2013. In the meantime, taxpayers will shoulder 100% of the losses for bank lending stupidity. On this confidence inspiring news, European bonds rallied sharply. Bloomberg reports EU Bank Writedown to Exclude Pre-’13 Debt

Som Seif has packed a lot into his 36 years. In his first career he was as an investment banker at RBC Capital Markets, while in his second, a more public role, he was founder of the Canadian operations of Claymore Investments, a company that grew over seven years to $8-billion in assets under management before being sold to BlackRock early last year.