The author has been described by News Ltd as an "iconoclast", "Svengali", a pollie's "economist muse", and "pungently accurate". Fairfax says he is a "Renaissance man" and "one of Australia’s most respected analysts." Stephen Koukoulas concludes that he is "85% right", and "would make a great Opposition leader." Terry McCrann claims the author thinks "‘nuance’ is a trendy village in the south of France", but can be "scintillating" when he thinks "clearly". The ACTU reckons he’s "an enigma wrapped in a Bloomberg terminal, wrapped in some apparently well-honed abs."

Friday, June 1, 2012

People are paying the Swiss for the right to lend them money (ie, -ve yields)

The flight to safety and credit quality is driving Aussie bond demand in a global risk-off trade (ironic given Australia used to be a risk-on proxy, and the currency remains so on a diminished basis). Ricardian Ambivalence has a good post on what has happened to nominal bond yields in Switzerland--they've turned  negative. In short, people are paying the Swiss for the right to lend them money! Imagine that. Now that is extreme risk-aversion...Since the GFC hit, Aussie bonds and Aussie cash have been the place to be.
at 2:39 PM