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During the 2020 stock market crash that began the week of 9 March, bond prices unexpectedly moved in the same direction as stock prices. Bonds are generally considered safer than stocks, so confident investors will sell bonds to buy stocks and cautious investors will sell stocks to buy bonds.
While the causes of the bubble and subsequent crash are disputed, the precipitating factor for the Financial Crisis of 2007–2008 was the bursting of the United States housing bubble and the subsequent subprime mortgage crisis, which occurred due to a high default rate and resulting foreclosures of mortgage loans, particularly adjustable-rate ...
In an international context, many emerging market governments are unable to sell bonds denominated in their own currencies, and therefore sell bonds denominated in US dollars instead. This generates a mismatch between the currency denomination of their liabilities (their bonds) and their assets (their local tax revenues), so that they run a ...
Safe haven in a potential crash Paulson is no stranger to navigating turbulent markets. He famously made a $15 billion profit for his firm, Paulson & Co., during the 2007 financial crisis by ...
In early 2022, bonds have found themselves at a crossroads. While traditionally a safe haven when the stock market is selling off, bonds are facing their own challenges in the face of high ...
The bonds of the bankrupt Lehman Brothers were auctioned on Friday, October 10. They sold for a little over 8 cents on the dollar. Many of the bonds of Lehman Brothers were insured with credit default swaps. Apprehension that payments to the holders of Lehman bonds might severely damage the firms or hedge funds which issued the swaps proved ...
It's happening again. About a month ago, bemused investors awoke to news that over in Germany, the government had just sold $5 billion worth of Eurobonds that paid an average interest rate of ...
The stock market boom in New York by 1928 choked off U.S. capital flows to central Europe and Latin America and precipitated currency crises in a number of countries (Australia, Argentina, Uruguay, and Brazil) and early in 1929. [19] The Wall Street crash caused stock market scares globally. This is known as the Great Depression.