Following on Yesterday's "Yanis Varoufakis – Time to Blow Up the Banking System".
From Business Insider via Yahoo Finance, August 24:
A 40% rout in Apple bonds is signaling trouble for bank balance sheets with big debt holdings, markets guru Larry McDonald says
A 40% plunge in Apple's bonds highlights the risks facing banks' debt portfolios, according to Larry McDonald.
The markets guru highlighted risks tied to mortgage-backed securities, which are on track for a third annual decline.
Silicon Valley Bank's collapse in March, which set off a wave of banking turmoil, was caused by the losses on its bond portfolio.
Apple's long-term bonds have lost 40% of their value since late 2020 thanks to the Federal Reserve's interest-rate increases - and that's highlighting the mounting risks for banks from their debt holdings, according to Larry McDonald.
The price of Apple's 2.55% debt due in 2060 has slumped to about $61.80 from $100.59 at the end of 2020. The bulk of the declines came since early 2022, when the US central bank started raising rates to quell inflation. The Fed has lifted its benchmark rate by more than 500 basis points since then....
....MUCH MORE
Anyone own those Austrian 2.1% of 2017? The 100-Year beauties?
Austria kept selling more and more since that first one, here's a story on the 0.85%'s of 2020 at Investing.com (also on blogroll at right):
Austria 100-Year Bond Hugely Oversubscribed As Investors Scramble For Returns
