Fra Zerohedge;
Welcome to economic ‘fantasy’ island.
Jim Grant, the world’s most famous interest rate observer, ventured on CNBC this week to expose and explain the utterly farcical world of financial markets (and in particular, risk assets) and how grotesquely distorted global bond markets have become.
He began with an example…
“As an example of where the world is mispricing interest rates… look to Italy, which is having a big [potentially disruptive] election on Sunday…
…there is a speculative grade Italian security, Telecom Italia, the 5 1/4’s of 2022 are trading at 0.61 percent, that is a junk bond with a zero handle.”
This bond traded with almost a 6 handle just 5 years ago…
Thank you Mr Draghi.
