Brian Chappatta

One Million US Jobs Heralds New Economic Era

If the February US jobs report signaled that America is truly rounding the final corner on the Covid-19 pandemic, then after a month of ramped up vaccinations and warmer weather, the latest data suggest that the world’s largest economy is now in an all-out sprint to herd immunity and a full…

Covid-Decimated Jobs Rebound Faster Than Expected

During a webinar on Thursday with The Wall Street Journal, Federal Reserve Chair Jerome Powell made a not-so-subtle pivot at the end of the discussion when he was asked whether he would like to serve a second term at the helm of the central bank if it were offered (emphasis mine). “I have…

Bond Traders’ Hot Tip for Next Year? Buy Stocks

There’s always been something of a rivalry between traders in stocks and bonds. Equities grab most of the headlines — they are shorthand for “the market,” after all — and captivate individual investors. Fixed income, on the other hand, is for pessimists and hedgers and is often praised as the …

Will Apple Bring Sticker Shock to Credit Markets?

Apple Inc. is no stranger to causing sticker shock with its newest products. It’s about to find out whether it can create a similar reaction among US corporate-bond buyers with its latest debt offering. The technology giant is taking the rare step of issuing dollar bonds for the second time in…

Climate Change Is Coming to Your Hometown Bonds

In some corners of finance, climate-change risks are only starting to appear on investors’ radars. By contrast, in the $3.8 trillion US municipal-bond market, natural disasters have been a nagging concern for decades. In the wake of Hurricane Katrina in 2005, Moody’s Investors Service slashed…

Worse Than World War I

Those who fear an impending cold war between the US and China need only look to the bond market to see evidence of a potential thaw. In the midst of a holiday-shortened week for American markets, China easily sold a record $6 billion of dollar-denominated bonds, accumulating $20 billion of…

As German Bund Yields Head to Zero, They Still Beat US Treasuries

Government bond yields are tumbling across the globe. In Japan, the 10-year yield is minus 0.03 percent, the second-lowest level in the past two years. In Germany, the 10-year bund yield fell to 0.08 percent, the lowest since October 2016. Should panic about recession in the European Union reach a…

The Yield Curve’s Day of Reckoning Is Overblown

For having assets totaling more than $3 trillion, the US corporate pension industry does an awfully good job of remaining a mystery to the world’s biggest bond market. Ask Wall Street strategists about the impact of pension demand on the Treasury market, and a consensus will emerge: It has…

World’s Post-Lehman Legacy

In many ways, all the talk about global central banks beginning a “great unwind” of their extraordinary monetary stimulus is positively quaint. After all, how can officials from the Federal Reserve to the Bank of Japan even pretend to know how to reverse what they’ve done over the past decade? I…