Having banned asset-backed bonds in 2009 after they’d helped spark the global financial crisis, authorities in the world’s second-largest economy started allowing sales in 2012. Issuance has climbed since then to 282.3 billion yuan ($45 billion) last year, almost 15 times the offerings in 2013, according to data compiled by Bloomberg.
The monetary base in Japan spiked 36.7 percent on year in February, the Bank of Japan said on Tuesday, coming in at 275.261 trillion yen.
That follows the 37.4 percent annual surge in January.
There’s a corner of the pension world that needs to brace itself for Mario Draghi.
His European Central Bank’s 1.1 trillion euro ($1.2 trillion) bond-buying plan might have already blown a 92 billion-euro hole in defined-benefit pension plans by depressing bond yields, Standard & Poor’s said Feb. 26. And if the actual start of QE pushes yields further, for longer, companies may have to take drastic measures to make ends meet, and could face a hit to their credit ratings.
The European Central Bank’s plan to pump 1.1 trillion-euro ($1.2 trillion) into the region’s economy through large-scale bond purchases is driving borrowing costs to record lows. Some companies are going a step further and selling the debt with rates below zero directly to investors, according to David Hiscock at industry group the International Capital Market Association.
Bond prices are so high that yields on $3.75 trillion of the developed world’s $24 trillion plus monetary liquidity have currently turned negative. This “inversion” has spread to a dozen countries, where government bond investors pay for the privilege of eventually getting their money back from those nations’ treasury debts, and long-term bonds issued.
The holdings shrank $8 billion to $77.1 billion, the lowest since December 2012, as the Finance Ministry used its maximum yearly allowance of 500 billion rubles ($8 billion) for budget financing, according to a Tuesday statement by the ministry in Moscow.
The latest official trade figures show Australia’s net foreign debt has hit a new record and is approaching $1 trillion.
Yellen said inflation and wage growth remain too low even as the job market improves, and she signaled that a change in the Fed’s guidance on interest rates won’t lock it into a timetable for tightening.
The European Central Bank’s unprecedented plan to buy bonds is leaving investors little choice other than to purchase additional company securities, which look preferable to the more than $2.15 trillion of the world’s sovereign debt that has negative yields.
Ukraine National Bank said Monday the country’s sovereign and sub-sovereign debt reached 71.5% of gross domestic product at the end of 2014, effectively breaking the terms of a $3 billion eurobond it sold to Moscow in December.
Instead of growing 3% or better in the fourth quarter, the actual number hit the tape at 2.6% — and was subsequently revised downward to only 2.2%. Right away, the new year wound up with one strike against it, since the jumping off point for this year’s first quarter is now far below expectations.
Austria Tuesday joined a handful of European countries that have sold five-year government bonds at a negative yield at an auction, reflecting low and falling borrowing costs across the euro area ahead of the start of the European Central Bank’s blockbuster sovereign bond-buying program.
Denmark’s central bank bought a record amount of foreign currency last month in a bid to protect the krone’s peg to the euro, underscoring the fallout from the European Central Bank’s efforts to boost economic growth.
According to recent analysis by McKinsey Global Institute, global debt has increased to the tune of $57 trillion, or 17pc, since 2007, with little sign of a slowdown in sight.
Hollywood’s unfunded pension liability is $492 million as of Oct. 1, 2014, Lalla said. Each of the city’s three pension funds — for police, fire and general employees — are funded at less than 57 percent.
The number of retirees paid at least $100,000 by the Massachusetts State Employees’ Retirement System has skyrocketed by nearly 77 percent since 2011 as more college staffers retired, the review found.
Greece is tapping into the cash reserves of pension funds and public sector entities through repo transactions as it scrambles to cover its funding needs this month, debt officials told Reuters on Tuesday.
Argentina’s economy minister said on Tuesday “me-too” investors who want compensation for debt owed since the country’s 2002 default have lodged claims for between $7 billion and $8 billion in the hope of gaining from its legal battle with other holdouts.
The commission stressed that with $83 billion in unfunded pension liabilities, $53 billion in unfunded health care liabilities and soaring annual pension payments, New Jersey can little afford to drag its feet on making these changes.
“The need for urgency in adopting a solution cannot be overstressed. The already narrow window for a reasonable solution is closing fast,” they wrote.
Senate Armed Services Committee leaders are urging congressional budget writers to clear the Pentagon to spend $577 billion next year, $54 billion above existing spending caps.
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