from Global Investing:

Bond investors’ pre-budget optimism in India

February 18, 2013

Ten-year Indian bond yields have fallen 30 basis points this year alone and many forecast the gains will extend further. It all depends on two things though -- the Feb 28 budget of which great things are expected, and second, the March 19 central bank meeting. The latter potentially could see the RBI, arguably the world's most hawkish central bank, finally turn dovish.

from The Great Debate:

Why public debt is not like credit card debt

By Robert Kuttner
January 14, 2013

One big part of the well-financed campaign for economic austerity is the contention that the public debt is like a national credit card. If we keep charging on it, the argument goes, we’ll get overwhelmed with interest costs, suffer a reduced standard of living and, pretty soon, go bankrupt.

from Global Investing:

Fears of collateral drought questioned

October 8, 2012

Have fears of global shortage of high-grade collateral been exaggerated?

As the world braces for several more years of painful deleveraging from the pre-2007 credit excesses, one big fear has been that a shrinking pool of top-rated or AAA assets -- due varioulsy to sovereign credit rating downgrades, deteriorating mortgage quality, Basel III banking regulations, central bank reserve accumulation and central clearing of OTC derivatives -- has exaggerated the ongoing credit crunch. Along with interbank mistrust, the resulting shortage of high-quality collateral available to be pledged and re-pledged between banks and asset managers,  it has been argued, meant the overall amount of credit being generating in the system has been shrinking,  pushing up the cost and lowering the availability of borrowing in the real economy. Quantitative easing and bond buying by the world's major central banks, some economists warned, was only exaggerating that shortage by removing the highest quality collateral from the banking system.

from Breakingviews:

US housing recovery shows subsidies need trimming

May 17, 2012

By Martin Hutchinson
The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The U.S. housing recovery shows it’s time to trim subsidies. The market finally looks close to bottoming out. Prices are reasonable and rates for borrowing mortgages are ultra-low. Mortgage interest tax deductions, loan guarantees and even some foreclosure assistance are looking increasingly unnecessary.

from Global Investing:

Emerging bond defaults on the rise, no surprise

May 1, 2012

As may be expected, the crisis has increased the risk of default by emerging market borrowers. According to estimates by ING Bank's emerging bond guru David Spegel, the default rate on EM bonds is running at over $6 billion in the first four months of 2012, already surpassing the 2011 total of $4.3 billion. He  predicts another $1.3 billion of emerging defaults to come this year.

from Global Investing:

Corporate bonds in sweet spot

February 16, 2012

Anticipation is running high for the ECB's LTRO 2.0 due on Feb 29.

The first such operation in December has largely benefited peripheral bonds even though estimates show banks used a bulk of their borrowing (seen at  just 150-190 bln euros on a net basis) to repay their debt, as the graphic below shows.

from The Great Debate UK:

Banks, borrowing, bonds and Britain’s budget

June 21, 2010

BRITAIN/

-Laurence Copeland is a professor of finance at Cardiff University Business School and a co-author of “Verdict on the Crash” published by the Institute of Economic Affairs. The opinions expressed are his own. Join Reuters for a live discussion with guests as UK Chancellor George Osborne makes  an emergency budget statement at 12:30 p.m. British time on Tuesday, June 22, 2010.-

from Entrepreneurial:

Things are looking up … sort of

July 28, 2009

smallbiz

Small business owners say they're more confident about the economy, but they're still plagued by worries about paying their bills and slumping cash flow, new research from Discover Financial Services shows.

from Entrepreneurial:

Peer-to-peer lender Prosper resumes service after SEC nod

July 14, 2009

lendingLet the lending begin. Prosper, a popular Web portal that facilitates peer-to-peer loans, announced on Tuesday that it has been given the go-ahead by federal regulators to resume its lending platform in several U.S. states after wrapping up a detailed registration process with the Securities and Exchange Commission (SEC).

from Luke Baker:

In for a penny, in for £175 billion

April 22, 2009

It may not be tax and spend exactly, but it's definitely tax and borrow.

For the best part of 12 years, Labour has pursued essentially conservative (with a small 'c') economic policies, steadily underburdening itself of the 'fiscally unreliable' tag that some earlier Labour administrations were (wrongly or rightly) saddled with.