‘Safe Haven’ Sovereign Debt at Lowest Levels in Several Hundred Years


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An eternal optimist, Liu-Yue built two social enterprises to help make the world a better place. Liu-Yue co-founded Oxstones Investment Club a searchable content platform and business tools for knowledge sharing and financial education. Oxstones.com also provides investors with direct access to U.S. commercial real estate opportunities and other alternative investments. In addition, Liu-Yue also co-founded Cute Brands a cause-oriented character brand management and brand licensing company that creates social awareness on global issues and societal challenges through character creations. Prior to his entrepreneurial endeavors, Liu-Yue worked as an Executive Associate at M&T Bank in the Structured Real Estate Finance Group where he worked with senior management on multiple bank-wide risk management projects. He also had a dual role as a commercial banker advising UHNWIs and family offices on investments, credit, and banking needs while focused on residential CRE, infrastructure development, and affordable housing projects. Prior to M&T, he held a number of positions in Latin American equities and bonds investment groups at SBC Warburg Dillon Read (Swiss Bank), OFFITBANK (the wealth management division of Wachovia Bank), and in small cap equities at Steinberg Priest Capital Management (family office). Liu-Yue has an MBA specializing in investment management and strategy from Georgetown University and a Bachelor of Science in Finance and Marketing from Stern School of Business at NYU. He also completed graduate studies in international management at the University of Oxford, Trinity College.

By , Value Walk,

Whitney Tilson has some interesting observations on bond yields across the globe. Yields of countries deemed to be ‘safe havens’ are near record lows. Some countries’ have debt trading at levels unseen in several hundred years.  On the other hand, countries looked upon as ‘weak’ have stocks with market caps at low levels.

Bond markets seem to be indicating the world is coming to an end:

The US 10 year Treasury yield last Friday hit 1.47%, breaking its prior all-time (200-year) low of 1.55% set in November 1945.

The Dutch 10 year government bond yield (1.61%) is the lowest in the past 500 years.

The German 10 year bund yield (1.20%) is the lowest in the past 200 years (bar the hyperinflation period of 1923/1924).

The French 10 year government bond yield (2.36%) is at a 260-year low.

The UK 5 year government bond yield is at a 110 year low

What about PIIGS equity markets

The market cap of the Italian Financial sector is now the same as the market cap of Colgate-Palmolive ($47bn).

The market cap of all Euro-zone Financials ($361bn) is less than that of Canadian Financials ($377bn).

The market cap of Spain and Italy equities combined ($396bn) barely exceeds that of Taiwan ($368bn).

The market cap of Portugal equities ($16.4bn) is the same as that of Whole Foods, the 191st largest stock in the S&P 500.

The market cap of Greece equities ($5.8bn) is the same as that of TripAdvisor, the 400th largest company in the S&P 500.

The CDS of Portugal exceeds Veneuela’s, the CDS of Italy exceeds Lebanon’s and the CDS of Spain substantially exceeds Iraq’s.

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