Bond Market Braces For $ 1 Trillion Tsunami Of Treasuries This Year

[g5000]

Dipshits misspelled Treasuries: Bond market braces for $ 1 trillion tsunami of Treasurys this year

Trump's Tard Herd has been deliberately kept in the dark to the fact that Trump ran up $666 billion in new debt last year. That's the highest deficit of any President in American history other than Obama.

And now, another trillion is about to hit the fan.

You see, pseudocons think if you keep adding more to your credit card, your payments don't have to go up.

In fact, Trump just lowered their credit card payment (tax "reform").

What we have here, ladies and gentlemen, is a Ponzi scheme. Trump is issuing debt (borrowing) to pay off the national credit card!

I shit you not.

The tax "reform" transferred $1.5 trillion of debt to our unborn descendants.

As if that isn't a big enough clusterfuck, at today's yields there probably isn't enough demand for Trump's trillion dollar treasuries.

So interest rates will have to rise to entice our enemies to loan us more money.

There are an astronomical number of financial derivatives which will implode if that happens. Derivatives with face values approaching triple digit trillions.


“If demand for U.S. fixed income doesn’t double over the coming years then U.S. long rates will move higher, credit spreads will widen, the dollar will fall, and stocks will likely go down as foreigners move out of depreciating U.S. assets,” said Torsten Slok, chief international economist for Deutsche Bank, in a note.


I warned you. I told you the last time the GOP controlled the whole government they spent like drunken sailors in a whorehouse.

 

[buckeye45_73]

We get it G5000. I'm on board, just use the budget from 2000, it'll make us rich!

 

[g5000]

An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. When the interest rate goes up the coupon payment rate will go down because the interest rate is deducted from the coupon payment. A higher interest rate means more is deducted, thus less is paid to the holder.

Inverse Floater

 

[g5000]

The short answer is that the "misspelling" is on purpose, done to differentiate Treasury bonds from the plural for the Department of Treasury, though I'm not sure why you'd ever need to pluralize that. In any event, a number of business news organizations, including CNBC, use the "Treasurys" spelling. Thanks for the question, and keep reading!

Treasuries and Treasurys ... Why the "Y"

 

[Doc1]

Tell us oh wise one......what is our economy based on?

 

[g5000]

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

You know, like home mortgages in 2008.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

 

[g5000]

Tell us oh wise one......what is our economy based on?

At the moment, leveraged insanity.

 

[Doc1]

Tell us oh wise one......what is our economy based on?

At the moment, leveraged insanity.

It's a debt based Economy. Hence every admins drunken spending.

 

[Toddsterpatriot]

Dipshits misspelled Treasuries: Bond market braces for $ 1 trillion tsunami of Treasurys this year

Trump's Tard Herd has been deliberately kept in the dark to the fact that Trump ran up $666 billion in new debt last year. That's the highest deficit of any President in American history other than Obama.

And now, another trillion is about to hit the fan.

You see, pseudocons think if you keep adding more to your credit card, your payments don't have to go up.

In fact, Trump just lowered their credit card payment (tax "reform").

What we have here, ladies and gentlemen, is a Ponzi scheme. Trump is issuing debt (borrowing) to pay off the national credit card!

I shit you not.

The tax "reform" transferred $1.5 trillion of debt to our unborn descendants.

As if that isn't a big enough clusterfuck, at today's yields there probably isn't enough demand for Trump's trillion dollar treasuries.

So interest rates will have to rise to entice our enemies to loan us more money.

There are an astronomical number of financial derivatives which will implode if that happens. Derivatives with face values approaching triple digit trillions.


“If demand for U.S. fixed income doesn’t double over the coming years then U.S. long rates will move higher, credit spreads will widen, the dollar will fall, and stocks will likely go down as foreigners move out of depreciating U.S. assets,” said Torsten Slok, chief international economist for Deutsche Bank, in a note.


I warned you. I told you the last time the GOP controlled the whole government they spent like drunken sailors in a whorehouse.

There are an astronomical number of financial derivatives which will implode if that happens.

What kind of derivative "implodes" when rates rise?
What does that "implosion" look like?

Derivatives with face values approaching triple digit trillions.

Face value?

 

[Toddsterpatriot]

An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. When the interest rate goes up the coupon payment rate will go down because the interest rate is deducted from the coupon payment. A higher interest rate means more is deducted, thus less is paid to the holder.

Inverse Floater

Looks like these borrowers will have a lower interest expense if rates rise.
Sounds awful!

 

[Doc1]

A debt based economy depends on a growing debt. We have more debt than we do money in circulation. The moment the Fed raises the interest rates you'll know they have decided to take us down.

 

[g5000]

Dipshits misspelled Treasuries: Bond market braces for $ 1 trillion tsunami of Treasurys this year

Trump's Tard Herd has been deliberately kept in the dark to the fact that Trump ran up $666 billion in new debt last year. That's the highest deficit of any President in American history other than Obama.

And now, another trillion is about to hit the fan.

You see, pseudocons think if you keep adding more to your credit card, your payments don't have to go up.

In fact, Trump just lowered their credit card payment (tax "reform").

What we have here, ladies and gentlemen, is a Ponzi scheme. Trump is issuing debt (borrowing) to pay off the national credit card!

I shit you not.

The tax "reform" transferred $1.5 trillion of debt to our unborn descendants.

As if that isn't a big enough clusterfuck, at today's yields there probably isn't enough demand for Trump's trillion dollar treasuries.

So interest rates will have to rise to entice our enemies to loan us more money.

There are an astronomical number of financial derivatives which will implode if that happens. Derivatives with face values approaching triple digit trillions.


“If demand for U.S. fixed income doesn’t double over the coming years then U.S. long rates will move higher, credit spreads will widen, the dollar will fall, and stocks will likely go down as foreigners move out of depreciating U.S. assets,” said Torsten Slok, chief international economist for Deutsche Bank, in a note.


I warned you. I told you the last time the GOP controlled the whole government they spent like drunken sailors in a whorehouse.

There are an astronomical number of financial derivatives which will implode if that happens.

What kind of derivative "implodes" when rates rise?

See post 3. Also, interest rate swaps. Credit default swaps.

And as I said above, any bond bought in the past few years will be underwater. Therefore, they take big losses, and any derivatives built on those bonds will implode.

Just like 2008.

What does that "implosion" look like?

It looks like 1994, only much worse.


ORANGE COUNTY'S BANKRUPTCY: THE OVERVIEW; Orange County Crisis Jolts Bond Market

Derivatives with face values approaching triple digit trillions.

Face value?

Yes. Face value.

 

[Toddsterpatriot]

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

You know, like home mortgages in 2008.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

Yes, bond values fluctuate when interest rates change.
If you didn't already know that you probably shouldn't invest your own money.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

If you didn't know how bond prices fluctuate, you really shouldn't trade bond derivatives.

 

[g5000]

A debt based economy depends on a growing debt. We have more debt than we do money in circulation. The moment the Fed raises the interest rates you'll know they have decided to take us down.

They won't have any choice but to raise rates.

They won't be able to sell Trump's debt unless they do.

It's not the Fed which will take us down. It is profligate spending by Trump and all who preceded him.

 

[g5000]

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

You know, like home mortgages in 2008.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

Yes, bond values fluctuate when interest rates change.
If you didn't already know that you probably shouldn't invest your own money.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

If you didn't know how bond prices fluctuate, you really shouldn't trade bond derivatives.

And yet Wall Street has been caught with their dicks in the wringer countless times.

Including the guys who manage your 401k.

 

[g5000]

An inverse floater is a bond or other type of debt whose coupon rate has an inverse relationship to a benchmark rate. An inverse floater adjusts its coupon payment as the interest rate changes. When the interest rate goes up the coupon payment rate will go down because the interest rate is deducted from the coupon payment. A higher interest rate means more is deducted, thus less is paid to the holder.

Inverse Floater

Looks like these borrowers will have a lower interest expense if rates rise.
Sounds awful!

Wrong.

The buyers of the inverse floaters will take a huge loss. That's why it is called an INVERSE floater, tard.

Just like 1994.

 

[Doc1]

A debt based economy depends on a growing debt. We have more debt than we do money in circulation. The moment the Fed raises the interest rates you'll know they have decided to take us down.

They won't have any choice but to raise rates.

They won't be able to sell Trump's debt unless they do.

It's not the Fed which will take us down. It is profligate spending by Trump and all who preceded him.

LOL, he, like every other Prez works for the Bankers. He will do what the Fed tells him to do.

 

[g5000]

Wall Street, including your 401k manager, has been chasing yields ever since the Great Recession.

They have been investing in riskier and riskier debt, including a lot of overseas debt.

The wave will start overseas.

 

[LordBrownTrout]

Put it this way. When interest rates go up, all those trillions and trillions of bonds issued the past few years will be underwater.

You know, like home mortgages in 2008.

And those losses are multiplied 10, 20, 30 times by overleveraged derivatives.

Yes, if they ever go up....which they should have gone up 8 years ago but the fed kept the lid on them.

 

[Toddsterpatriot]

Dipshits misspelled Treasuries: Bond market braces for $ 1 trillion tsunami of Treasurys this year

Trump's Tard Herd has been deliberately kept in the dark to the fact that Trump ran up $666 billion in new debt last year. That's the highest deficit of any President in American history other than Obama.

And now, another trillion is about to hit the fan.

You see, pseudocons think if you keep adding more to your credit card, your payments don't have to go up.

In fact, Trump just lowered their credit card payment (tax "reform").

What we have here, ladies and gentlemen, is a Ponzi scheme. Trump is issuing debt (borrowing) to pay off the national credit card!

I shit you not.

The tax "reform" transferred $1.5 trillion of debt to our unborn descendants.

As if that isn't a big enough clusterfuck, at today's yields there probably isn't enough demand for Trump's trillion dollar treasuries.

So interest rates will have to rise to entice our enemies to loan us more money.

There are an astronomical number of financial derivatives which will implode if that happens. Derivatives with face values approaching triple digit trillions.


“If demand for U.S. fixed income doesn’t double over the coming years then U.S. long rates will move higher, credit spreads will widen, the dollar will fall, and stocks will likely go down as foreigners move out of depreciating U.S. assets,” said Torsten Slok, chief international economist for Deutsche Bank, in a note.


I warned you. I told you the last time the GOP controlled the whole government they spent like drunken sailors in a whorehouse.

There are an astronomical number of financial derivatives which will implode if that happens.

What kind of derivative "implodes" when rates rise?

See post 3. Also, interest rate swaps. Credit default swaps.

And as I said above, any bond bought in the past few years will be underwater. Therefore, they take big losses, and any derivatives built on those bonds will implode.

Just like 2008.

What does that "implosion" look like?

It looks like 1994, only much worse.


ORANGE COUNTY'S BANKRUPTCY: THE OVERVIEW; Orange County Crisis Jolts Bond Market

Derivatives with face values approaching triple digit trillions.

Face value?

Yes. Face value.

Also, interest rate swaps. Credit default swaps.

Yes, some people will make money on those derivatives, some will lose.

It looks like 1994, only much worse.

A fool and his money.....or in that case, a fool and the taxpayer's money.

Yes. Face value.

If you want to sound like you know what you're talking about, maybe you should use notional?