Monday, March 22, 2010

Obama: A Losing Bet in the T-Note Market


The bond market is saying that it’s safer to lend to Warren Buffett than Barack Obama.

Two-year notes sold by the billionaire’s Berkshire Hathaway Inc. in February yield 3.5 basis points less than Treasuries of similar maturity, according to data compiled by Bloomberg. Procter & Gamble Co., Johnson & Johnson and Lowe’s Cos. debt also traded at lower yields in recent weeks, a situation former Lehman Brothers Holdings Inc. chief fixed-income strategist Jack Malvey calls an “exceedingly rare” event in the history of the bond market.

Has nothing to do with ObamaBudget, nor ObamaCare.

Just co-incidence.


J. Strupp said...

How's ol' Warren bond rating these days?


That is all.

Julie said...

OMG economy is crazy!! So now Warren Buffett is safer? I guess this is the end of times! How con somebody be safer than the president. If we start like this we will end up Losing things that are valuable and nobody wants that. What happened with Lehman Brothers Holdings Inc. really increased the risk market and regulators had to put pressure to reduce it.
I don´t know what is going to happen in the future, but we are really going through some rough times nowadays.