Favourite description of ECB policy:
Alberto Gallo Thu 11 Mar 2021 14:11

Some oppose these fiscal measures and the higher tax rates associated with them. But history reminds us that financial repression has been much higher in the past. We are experiencing a very mild redistribution. https://t.co/QtmzVtr9hd
Alberto Gallo Mon 08 Mar 2021 10:27

This means higher inflation over time, higher nominal interest rates, and lower valuations for growth assets. But it is long overdue: we are at record high levels in income and wealth inequality, and productivity is stagnating also as a result of that. https://t.co/nHaRhNeQT3
Alberto Gallo Mon 08 Mar 2021 10:22

When fiscal stimulus goes to people who need it most, it works: they spend it. This is why the Biden administration's $1.9tn plan will have a higher multiplier than past programmes centred around tax cuts for large firms combined with Fed #QEinfinity. https://t.co/EuQLC7QoZ4
Alberto Gallo Mon 08 Mar 2021 10:22

The Fed will start worrying about yields again if the S&P drops by
Alberto Gallo Thu 04 Mar 2021 07:33

*ECB SAID TO SEE NO NEED FOR DRASTIC ACTION TO CURB BOND YIELDS ECB changes tack again, from prior statements about focus on yields. Premature to follow the Fed's stance given the weak state of Europe's recovery.
Alberto Gallo Wed 03 Mar 2021 09:42

Who says bonds are boring (or safe)? Austria 2.1% 2117 is down nearly 25% from its peak. #BoilingFrogs https://t.co/BtL0g7uNRB
Alberto Gallo Fri 26 Feb 2021 14:07

The bond selloff continues. The belly of US rates is leading: markets are challenging the Fed's #QEinfinity rhetoric. This is good news, showing investors are pricing in a potential end to secular stagnation, but it's bad news for many long duration portfolios. #BoilingFrogs https://t.co/V0MD0lqeN6
Alberto Gallo Thu 25 Feb 2021 14:26

Republic of Austria 0.85% 2120 #BoilingFrogs https://t.co/nYbu8NwaW5
Alberto Gallo Thu 25 Feb 2021 11:56

Breaking: bond prices don't only go up via @FT #BoilingFrogs Link
Alberto Gallo Wed 24 Feb 2021 07:55

In yesterday's testimony, J. Powell trashed the economics textbook, admitting a weak link between monetary aggregates and inflation, as well as the Fed's focus on employment rate rather than unemployment. However, he did not answer on inequality and the relative effectiveness
Alberto Gallo Wed 24 Feb 2021 07:40

"When you and I studied economics a million years ago M2 and monetary aggregates seemed to have a relationship to economic growth. Right now M2 does not really have important implications. It is something we have to unlearn I guess."
Alberto Gallo Wed 24 Feb 2021 07:40

How it started How it's going https://t.co/oi8HpHswjD
Alberto Gallo Mon 22 Feb 2021 15:28

As a result, the wipeout buffer for triple B bonds - the widening in bp that wipes out a year of carry, is at *100 year lows*. The bottom line is, if you are a long only bondholder, you can either lose money quickly with a repricing of yields, or slowly - against inflation. https://t.co/L3V23IlNZ3
Alberto Gallo Mon 22 Feb 2021 14:23

Meanwhile, with low global rates, corporate and sovereign issuers as well as mortgage borrowers have refinanced at longer durations, putting more strains on asset buyers in a rates widening. https://t.co/uGkD2S9NJW
Alberto Gallo Mon 22 Feb 2021 13:53

Stronger vaccine distribution and fiscal stimulus keep pushing bond yields wider. Today, it's the belly of the yield curve is leading, as markets start incorporating not only higher inflation expectations, but also an earlier end to the Fed's dovish policy. #BoilingFrogs https://t.co/M3ijhqpbN8
Alberto Gallo Mon 22 Feb 2021 12:08

Is it safe to buy investment grade debt? "Safe" investment grade bonds, currently bear the highest average duration on record, at 10.1 years. With US Treasury yields going wider, this is their YtD performance: https://t.co/fdhtKbA3pK
Alberto Gallo Fri 19 Feb 2021 09:55

Not a great few weeks for 100-year bonds: Republic of Austria 0.85% 2120 https://t.co/h26FeS7Fwz
Alberto Gallo Mon 15 Feb 2021 17:26

Oil is nearing pre-covid levels. Meanwhile, bond markets are unprepared for #QEinfinity turning into #reflation https://t.co/UVSjdz6qpW
Alberto Gallo Mon 15 Feb 2021 08:56

"We find ourselves in a situation where we're on the roof, and there is no risk-free path. We've got to jump" Powell's words prior to the taper tantrum #QEinfinity Link
Alberto Gallo Sat 13 Feb 2021 16:25

High yield has become low yield. #QEinfinity Source: Credit Suisse High Yield triple-C index https://t.co/sN9BiYAFNA
Alberto Gallo Thu 11 Feb 2021 14:48

On asset bubbles, leverage and inequality #QEinfinity via @Carson_C_Block @muddywatersre @FT Link
Alberto Gallo Thu 11 Feb 2021 07:32

US junk bond yields are now well below 4% #QEinfinity #PricedForPerfection https://t.co/JgF1lBs8ea
Alberto Gallo Tue 09 Feb 2021 12:58

US junk bond spreads back to near record lows: #QEinfinity https://t.co/MECg7CklCS
Alberto Gallo Mon 08 Feb 2021 22:28

US junk bond spreads: back to near-record lows: #QEinfinity https://t.co/rwWRqaupNQ
Alberto Gallo Mon 08 Feb 2021 22:23