What could go wrong on trading desks if the U.S. defaults on its debt? A lot.
FORTUNE -- Government officials used to see it as part of their job to calm the markets. Not anymore. Last week, President Obama and Treasury Secretary Jack Lew both said they thought Wall Street wasn't freaking out enough about the possibility of a debt ceiling default.
Right now, most of Wall Street appears to be betting MOREStephen Gandel, senior editor - Oct 7, 2013 5:00 AM ET
Traders are talking about the prospects of "dirty prices" and other default oddities.
FORTUNE -- On Thursday, the Treasury Department released a report anticipating what would happen if we have a debt ceiling default. One prediction: a financial crisis that could "echo the events of 2008 or even worse."
It's hard to see exactly how that could happen.
If Treasury bonds were to plummet after a debt default, that could cause other bonds MOREStephen Gandel, senior editor - Oct 4, 2013 9:49 AM ET
Even in a default, many investors would see Treasuries as safer than stocks.
FORTUNE -- As Congress seems nowhere closer to resolving the nation's budget problems on day four of the government shutdown, federal officials have raised fresh warnings the U.S. could default on its debt.
Credit markets could freeze, the dollar's value could spiral, and U.S. interest rates could skyrocket, the U.S. Treasury Department warned Thursday. If Congress fails to lift MORENin-Hai Tseng, Writer - Oct 4, 2013 5:00 AM ET
It now costs $46,570 to insure $10 million of U.S. bonds against default for one year, up from just over $8,000 in mid-September. But it's not necessarily a Big Short.
FORTUNE -- A lot of people have noted that at least up until this week, investors have largely shrugged off the possibility of a government shutdown or default.
But that's not entirely true. There is one market where investors seem to be MOREStephen Gandel, senior editor - Sep 30, 2013 9:27 AM ET
Slower rising prices might have given Ben Bernanke an easy taper escape.Stephen Gandel, senior editor - Sep 18, 2013 2:30 PM ET
It's a classic Wall Street game: Build a feeding frenzy to drive up a deal. And like most hype, it'll leave investors little to chew on in the end.
FORTUNE -- When you've gone hungry for a long time, even mediocre takeout dishes can look like something scrumptious from a five-star restaurant. That explains the stampede by buyers to gobble up Verizon's record $49 billion debt offering.
For years investors, especially big MOREAllan Sloan, senior editor-at-large - Sep 18, 2013 5:00 AM ET
The Fed's taper is hitting Wall Street.
FORTUNE -- Earlier this week, at an investor conference, JPMorgan Chase's CFO Marianne Lake said her bank could see a $15 billion drop in the value of its bond portfolio if interest rates were to rise two percentage points. In April, JPMorgan (JPM) CEO Jamie Dimon said in his annual letter to shareholders that a 3 percentage point rise in interest rates would produce $5 billion MOREStephen Gandel, senior editor - Sep 11, 2013 1:34 PM ET
Verizon launches largest corporate bond offering of all time.
FORTUNE -- Verizon Communications (VZ) today formally launched a $49 billion bond sale to help finance its $130 billion acquisition of Vodafone's 45% stake in Verizon Wireless. It would be the largest investment-grade corporate bond offering of all time, easily topping Apple's (AAPL) $17 billion issuance from this past spring:
Verizon's offering also could help turn around the entire corporate bond market's fortunes, MOREDan Primack - Sep 11, 2013 11:31 AM ET
What a rigorous metric called "EVA" says about the value of stocks. Hint: it ain't pretty.
FORTUNE -- Forget P/Es. Trailing, forward, westward, or eastward, the venerable price-earnings ratio tells you little more about the value of a company than its marketing budget. Or (ugh!) its "consensus analyst rating."
The best measure of how companies perform for shareholders is a wonkish tool called Economic Value Added, or EVA. The advantage of EVA is MOREShawn Tully, senior editor-at-large - Aug 19, 2013 8:51 AM ET
This seismic shift in interest rates will certainly be one of the most critical factors over the coming quarters and years.
By Daryl G. Jones, Hedgeye
FORTUNE -- Every quarter, our team here at Hedgeye gets together and boils down the turmoil in global macro markets to three neat and tidy themes for our clients. But, in the spirit of Gary Keller's new, thought-provoking book, The ONE Thing, I'm going to employ MOREAug 15, 2013 9:04 AM ET
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