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
Don't feel bad if you weren't aware of the recent plummet in long-term bond prices. Most everyone else missed it too.
FORTUNE -- We hear lots of talk about the bond market these days. So let me ask you a simple question: Do you think you'd notice if a key bond-market segment took a one-day hit equivalent to a 600-point drop in the Dow? Answer: No, you wouldn't. How do I MOREAllan Sloan, senior editor-at-large - Jul 25, 2013 5:00 AM ET
The Fed wants to keep long-term yields depressed, but its policies are riddling the market with risk.
FORTUNE -- Last Wednesday, at a conference in Cambridge, Mass., Ben Bernanke sought to clarify the statements that shocked the markets just three weeks earlier. This time, the Federal Reserve Chairman reassured his vast, anxious audience that his pledge to start shrinking the Fed's $85 billion in monthly purchases of long-term bonds, the latest MOREShawn Tully, senior editor-at-large - Jul 16, 2013 8:00 AM ET
A historical look at periods when the 10-year Treasury yield spiked significantly should ease stock investors' worries.
FORTUNE – Interest rates are expected to soar further, but don't expect that to ruin the bull market in U.S. stocks.
The yield on the 10-year U.S. Treasury note has risen sharply since May when the U.S. Federal Reserve hinted it may cut back on $85 billion in monthly bond purchases, a policy that's driven MORENin-Hai Tseng, Writer - Jul 11, 2013 10:29 AM ET
AQR Capital's Cliff Asness, who runs one of the world's biggest hedge fund firms, says now is not the time to freak out.
FORTUNE -- No black swans here.
That's the opinion of hedge fund manager Cliff Asness, who runs AQR Capital, which is one of the industry's biggest firms with $80 billion under management. The rapid move up in interest rates and the recent 800-point two-day drop in the Dow Jones MOREStephen Gandel, senior editor - Jun 27, 2013 10:51 AM ET
Holding $3.3 trillion in bonds when debt prices are falling might end up costing taxpayers money, or, then again, maybe not.
FORTUNE -- Think your 401(k) has suffered in the stock and bond market rout? Consider the Federal Reserve's recent woe: By Fortune's estimates, the U.S. central bank has lost at least $151 billion in the past seven weeks. And counting.
Economists both inside and out of the Fed have long suspected MOREStephen Gandel, senior editor - Jun 26, 2013 5:00 AM ET
All of the market dislocations -- Treasuries, commodities, etc. -- were percolating underneath the surface well before this frenzy.
By Keith McCullough, Hedgeye
FORTUNE -- What an epic 48 hours it has been. Just. Total. Chaos.
We are officially going over the waterfall now. Boats are in midair. People are hanging on trees. Everybody is scrambling, trying to explain what they missed. Trying to make sense out of it all. Hat tip to MOREJun 21, 2013 10:00 AM ET
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