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Where does the US credit rating come from?

May 25, 2023
Atsi Sheth from Moody's gives us a behind the scenes look into the company's ratings process.
"In the most basic terms, a credit rating is really an opinion on the credit quality of any entity that borrows on the debt capital markets," said Atsi Sheth at Moody's Investors Service.
Emmanuel Dunand/AFP/Getty Images

How the Fed's rate hikes spelled trouble for banks like SVB

Mar 21, 2023
Why bonds lose value when the Fed hikes interest rates and what that has to do with banks.
Silicon Valley Bank was among the financial institutions for which rising interest rates on bonds spelled trouble.
Patrick T. Fallon/AFP via Getty Images

What is "duration risk"? (And how did it get Silicon Valley Bank into trouble?)

Mar 16, 2023
Investing in long-term government bonds and mortgage-backed securities hurt the bank as interest rates rose and bond prices plummeted.
Some bonds are more sensitive to interest rates than others, depending on how long they take to mature. That “duration risk” hurt SVB financially.
Noah Berger/AFP via Getty Images

The Federal Reserve is unwinding its bond-buying program. Will that help deflate the inflation balloon?

Aug 24, 2022
The Fed uses its buying power in the bond market to raise or lower interest rates by manipulating how much money is available in the economy.
The Fed blew up the "balloon" of the economy during the pandemic by, in part, ratcheting up its bond buying and flooding financial markets with money.
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The Fed will sell some of the bonds it's been buying in an effort to cool the economy

Apr 6, 2022
Selling the Treasury and mortgage-back bonds on its balance sheet helps the central bank raise interest rates.
According to its March meeting minutes, the Federal Reserve will start selling $95 billion worth of bonds per month.
Daniel Slim/AFP via Getty Images

This important interest rate has bounced back to its pre-pandemic level. That's good news.

Feb 7, 2022
The market that sets the rate for the 10-year T-Note is betting that growth will continue and inflation won't last.
The 10 year T-note is nearly back to pre-pandemic numbers.
Spencer Platt/Getty Images

How has the Federal Reserve's bond buying helped the economy?

Aug 19, 2021
Those bonds have helped keep lots of money flowing into the economy. But now, the Fed is signaling that its going to taper off its monthly purchases.
Federal Reserve Chair Jay Powell is expected to address the tapering of the Fed's bond-buying at an upcoming conference in Jackson Hole, Wyoming.
Nicholas Kamm/AFP via Getty Images

For public good, not for profit.

A corner of the bond market is showing signs of stress

Mar 13, 2020
After this week's global market crash, the credit market is showing signs of stress.
Bryan R. Smith/AFP via Getty Images

Bond yields are lower than during the financial crisis

Mar 9, 2020
But that may not be signaling that the economic damage from the coronavirus will be as bad as the Great Recession.
Traders work on the floor of the New York Stock Exchange Monday.
Spencer Platt/Getty Images

Bond yields hit a record low

Feb 28, 2020
Why are investors settling for such small returns? U.S. Treasurys are about the safest place to put your money.
A trader reacts during the opening bell at the New York Stock Exchange on Friday as markets continue to drop from COVID-19 uncertainty.
Johannes Eisele/AFP via Getty Images