Monday, April 11, 2016

Is Japan About To Reach The 
Quantitative Limits Of Quantitative Easing?
Bloomberg article highlights how the Bank of Japan is running out of government bonds to buy, as part of their monetary stimulus program .. "Safe assets like government debt aren't just attractive to central banks looking to force investors into riskier asset classes and push down the cost of borrowing or to pensioners looking for a reliable source of income—they're also in high demand by financial institutions for use as collateral. That's because where there is a dearth of safe assets, there is also an incentive and tendency for them to be manufactured; that is, improperly labeled as such. Past results certainly haven't been pretty."
LINK HERE to the article

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