Category Archives: Bonds

Laughing So Hard It Hertz

Hertz, the Superstar in Rent-a-Car, filed for bankruptcy on May 22nd. That’s when the fun began. Hertz stock, henceforth to be known as HTZ, fell to 56 cents on May 26th, the business day after its Chapter 11 filing. Then, HTZ ascended like Icarus. It hit a high of 6.25 and closed at 5.53 on June 8th. I wrote about it in The Spin, my newsletter. I talked about HTZ bond prices, the bonds’ senior claim to the equity in bankruptcy and the likelihood that HTZ stock was worthless. I thought I was done, but no. It got better. Continue reading

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We Need to Talk About the Yield Curve

What is the yield curve and why should I care? The yield curve is a graph of the yields that government bonds are paying, arranged in order of time to maturity. You should care because the cost of mortgages, bank … Continue reading

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Fire and Ice

Some say the world will end in fire, Some say in ice. From what I’ve tasted of desire I hold with those who favor fire. But if it had to perish twice, I think I know enough of hate To … Continue reading

Posted in Banks, Bonds, Central banks, Credit, Economics, Finance, Investing, The Fed | Tagged , , , , | Leave a comment

Finance Is a Language

He walked quietly into the lecture room, tall, thin and pale. His suit hung loosely off his frame. He spoke softly: “This is 15.439, Problems in Finance. There is a list of 50 problems for this course. If we do … Continue reading

Posted in Asset Allocation, Bonds, Economics, Finance, Investing | 2 Comments

Hitting ‘Em Where They Ain’t

 “Keep your eye on the ball and hit ‘em where they ain’t”                                                          … Continue reading

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