Jack Malvey News
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The idea that Democrats are big spenders and bad for bonds while Republicans are deficit hawks is being turned on its head in the $10.8 trillion market for U.S. Treasury securities.
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Relative yields on corporate debt, already near the lowest in more than a year, still have room to tighten, according to Jack Malvey, chief global markets strategist at Bank of New York Mellon Corp.
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Bank of New York Mellon Corp., which oversees $1.2 trillion in assets, hired former Lehman Brothers Holdings Inc. analyst Jack Malvey as chief global markets strategist.
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Returns this month on corporate bonds from the U.S. to Europe and Asia are exceeding those in the entire second quarter and offerings are poised for the busiest July in three years as investors show growing confidence in company finances.
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Sales of corporate bonds from the U.S. to Europe and Asia slumped to their lowest levels this year and borrowing costs soared to the most since February as a global slowdown curbed demand for all but the safest assets.
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Returns on inflation-linked bonds fell below those of government debt by the most in almost three years as the world economic slump makes it less likely that easy monetary policies will trigger spiraling consumer prices.
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A rally in Treasuries sent 10-year yields to the lowest level since November and the dollar rose after a gauge of manufacturing weakened to a two-year low. U.S. stocks pared losses as lawmakers expressed optimism Congress will pass a plan to increase the debt ceiling.
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Treasuries rose, rallying from losses yesterday, on concern Europe’s fiscal crisis will slow economic growth around the world.
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Too few “mud Marines” were slogging through bond prospectuses in the run-up to the European sovereign-debt crisis, according to Jack Malvey , former chief fixed-income strategist at Lehman Brothers Holdings Inc.
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Investors should turn to speculative-grade debt amid a “world of minuscule yields” that is likely to persist, according to Jack Malvey , former chief global fixed-income strategist at Lehman Brothers Holdings Inc.
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