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Bond Market Crash

All articles tagged with #bond market crash

The Uncertainty of US Treasurys Amid Bond-Market Crash and Default Risk

Originally Published 2 years ago — by Markets Insider

The reputation of US Treasurys as a safe-haven asset has been questioned due to a historic bond sell-off and rising default fears. Moody's recent downgrade of the US credit outlook to "negative" and concerns over massive deficits and rising debt have raised doubts about the safety of Treasurys. While some argue that Treasurys still serve as a safe haven, others point to liquidity and interest rate risks, as well as the increasing cost of insuring against default. As concerns over debt sustainability and bond prices mount, investors have become more cautious, demanding higher compensation for holding Treasurys. However, some analysts believe that in a risk-off environment, Treasurys would still attract safe-haven flows.

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"Banks Grapple with $650 Billion Unrealized Losses Amid Bond-Market Crash"

Originally Published 2 years ago — by Markets Insider

Big banks, including Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo, are facing approximately $650 billion in unrealized losses due to the crashing bond prices caused by the Treasury-market rout. This situation has raised concerns about another financial crisis similar to the collapse of Silicon Valley Bank earlier this year. While these losses are not the same as debt, they have negatively impacted the share prices of major financial institutions. However, some analysts believe that the worst of the Treasury-market rout may be over, as the Federal Reserve signals the end of its tightening campaign. Nonetheless, the unrealized losses continue to be a concern for Wall Street's biggest names.

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