Category Archives: Bond Market

Is The Shape Of The U.S. Treasury Yield Curve Warning That A Recession May Be Imminent?

economy photo

Back in the 1980’s when working as a municipal bond analyst, I would keep investors informed about the shape of the tax-free yield curve! If the yield curve was positive and steep, or in other words a significant difference between short and long-term yields, then investors would be getting compensated for taking on the additional […]

Is The Mortgage Market Facing The Unintended Consequence Of A Fed Inspired Liquidity Crisis?

unintended consequences of the Feds reluctance to raise interest rates

In other words, despite the fact that mortgage rates are at cycle lows, could the reticence on the part of the Fed to raise rates actually bring the hammer down on mortgage originations? Kroll Bond Rating Agency Senior Managing Director Christopher Whalen thinks so! “Policymakers are not watching spreads. There is a liquidity problem — this is […]