bond market

The $800 Trillion Scandal: How Banks' LIBOR Lies Affected You

The incredible LIBOR rate-rigging scandal is huge, and it's only going to grow in scope: Many of the world's largest banks have already been implicated in manipulating interest rates that are tied to some $800 trillion in loans and securities.

US Debt: Money Managers' Least Favorite Investment

Ask the people who invest billions for a living to name their favorite picks for 2012 and you'll get a smorgasbord worthy of a holiday party: Brazilian stocks, U.S. junk bonds, and government debt from Colombia. Ask them what they dislike and they'll name one of the top-performing investments this year: U.S. government bonds.

Alabama County on the Brink of Bankruptcy

Investors and officials in Jefferson County, Ala., are trying to negotiate a deal to avoid bankruptcy by Thursday's deadline. If they're unsuccessful, the county could end up with the largest Chapter 9 filing in U.S. history, which could rattle the $2.9 trillion municipal bond market.

One Safe Way to Invest Now in Municipal Bonds

After respected banking analyst Meredith Whitney rattled the municipal bond market with her prediction of hundreds of billions of dollars in muni defaults, small investors dumped the bonds. That dire prediction may yet come true, but there are a few types of munis that still carry virtually no risk.

Social Insecurity: Inside the 'Trust Fund' Illusion

The federal government has been borrowing Social Security's surpluses for decades and issuing the program IOUs in return. However, the ability to pay those IOUs depends on the Treasury borrowing more money on global bond market at affordable rates. That's hardly a sure thing.

Social Security Is in Far Worse Shape Than You Think

For years, policymakers have reassured the public that Social Security will be solvent for decades. But federal spending and income data from the Treasury reveals that Social Security is already deep in the red, with outlays exceeding payroll tax revenues by $76 billion in 2010 alone.

Spain to Sell Stake in State Lottery as Debt Crisis Looms

With the fears of a European sovereign debt crisis growing worse, the Spanish government said Wednesday that it's taking several measures to stop the fiscal contagion from reaching its shores, including selling a 30% stake in its national lottery business, Bloomberg reported.

What to Watch for in the Dollar's Moves

The stock market is often coy about announcing when its trend is about to change direction, but DailyFinance's technical analysis guru, Charles Hugh Smith, sees a downward shift coming. His basis for bearishness is a relationship that has applied often in the markets -- the dollar-stocks see-saw.

Greenspan: Deficit Fears Could Trigger Bond Market Crisis

The U.S. must act to rein in its massive budget deficits or face the risk of a bond market crisis, former Fed Chairman Alan Greenspan said Sunday. If deficits begin to frighten the bond market, interest rates will rise, undermining the recovery, and possibly causing a double-dip recession.

Bernanke Defends QE2 Plan to Boost Economy

A day after the the Federal Reserve announced a second round of quantitative easing measures to stimulate the economy, Fed Chairman Ben Bernanke responded to critics of QE2 in a Washington Post op-ed that explained how the bond purchases will work, and why they won't spark inflation.

Why China's 'Nuclear Option' Isn't So Scary

China's holdings of U.S. Treasury bonds are so huge that they'd be a financial "weapon of mass destruction" if Beijing were dump them all quickly. But a closer look at the data and some recent trends suggest that China's power in this regard is overrated.

China Promises Continued Support for Europe

Chinese premier Wen Jiabao said his country will support European bonds and the euro currency. "I have made clear that China supports a stable euro," he said, according to BBC News.

Europe's Debt Crisis:
Fixed, or Just Papered Over?

Officially, Europe's fiscal health is on the mend, but each time the Continent's debt crisis is declared history, some ugly financial news quickly emerges to undercut those claims. Indeed, the real eurozone meltdown may still lurking beyond the horizon.

Fearful Investing Is Hazardous to Your Financial Health

Many investors are taking steps to make themselves feel safer in this uncertain economy: jumping out of stocks, buying bonds, or even dabbling in the high risk end of the pool looking for bigger returns. But that sort of short-term strategy could jeopardizing your retirement.

The Bulls Lead the Charge
Into September

A better-than-expected reading on the job market propelled stocks to their fourth straight day of gains, putting a bullish stamp on the first few days of September trading after the worst month of August for U.S. equities in nearly a decade.

Unique Financing Keeps Airport Rail Link on Track

Work is moving forward on a new light rail link from downtown Denver to its airport, backed by an unusual combination of federal loans and private investment. The project will create thousands of jobs, and add a much-needed public transit option for reaching the nation's fifth-busiest airport.

Why an M&A Boom Could Be Just Around the Corner

Fears of an economic slowdown have sent stocks reeling and bonds soaring. With companies sitting on record piles of cash and easy credit available, this may lay the foundation for a potential mergers and acquisitions boom -- and help revive equities.

Legal Briefing: Ratings Agencies Try to Avoid Lawsuits

Now that credit rating agencies can be sued for issuing inflated ratings, they're refusing to allow their ratings to be used to sell bonds. Unfortunately, since some types of bonds are required to have such ratings, those parts of the bond market are shutting down.

Stocks Close Higher, but Growth Worries Remain

Stocks took an uncomfortably circuitous route to posting broad-based gains Tuesday, as a better-than-expected outlook on global recovery from the Australian central bank was tested by a bleaker assessment of the U.S. economy from the bond market.

In This Market, What Should Bond Investors Do?

The stock market's volatility has caused some investors to seek safety in bonds. But with the recent European debt crisis, interest rates movements have surprised investors. Here are some smart bond investing strategies for an uncertain rate environment.