Tag: Treasuries

How do Bank Stocks Perform During Periods of Rising Rates? (Python Code Version)

This is the Python version of a guest article that originally appeared on RectitudeMarket.com. In this version I include the Python code used to generate the anaylsis. This subject has garnered a healthy debate among market participants in recent weeks. Conventional wisdom says that banks and the financial sector overall should benefit from a rising rate environment. The story goes that bank profitability is inextricably linked to `Net Interest Margin (NIM)`. If rates are rising, it is assumed

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How Volatile Are US Treasury Bond Yields?

The volatility in global bond markets have generated quite the discussion among market participants. So much so that BlackRock has indicated publicly that their old risk models need to be redone. BlackRock was speaking specifically about the European sovereign bond market but in light of the recent volatility in US treasuries I wanted to contextualize what's happening domestically. Especially considering I went out on a limb regarding the relative-value offered by the US long bond I thought thi

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The US Treasury Fakeout

Global bond market volatility was at a relative extreme this week. Following the markets you would see headlines like this: The basic premise being that the world is awash in liquidity and as a result of the prices of government bonds, investment grade bonds (IG), and high yield (HY), have been bid so heavily that the yields of these instruments no longer reflect the credit and/or currency risks associated with the issues. Of particular interest to me was the relentless selling in USD based as

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