US$76 trillion bond market bubble risk, page-2

  1. 8,981 Posts.
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    nope, interest rates are a known quantity and are often easily priced in, ahead of time. the US fed will never be in a position to "have" to raise rates and can control any rise or fall of interest rates, a inverse proxy for bonds rise and fall, like levers. its not like they'll jack them 4-5% over night, itll be controlled and informed.

    it is important to remember also that the bond market is its own universe. bond traders, as the name suggests, trade bonds and its a big market... not all countries or even corporate bonds will react the same to a US interest rate rise and thus the trading will continue... the lads just dont pack up and go home, they trade.

    so sure some markets will contract, some will grow... but to suggest a bond crash is universal underestimates the complexity of these markets and the amount of people that hunt within them.

    nothing is ever lost, it just changes form, shape or place.... look at the lads holding commodities during the gfc
 
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