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Uncle Pipeline’s Corner

Uncle Pipeline has been a Financial Pipeline contributor since 1996. An expert in investing in bonds to managing your personal finances, he’s the kindly uncle who is always there for you with great financial advice. Always opinionated but never boring, Uncle Pipeline’s insightful anecdotes and simple explanations will help you to make better decisions about your money. He’s like a stiff pull of hard liquor – a little hard to swallow, but remarkably warming and helpful in the end.

You can trust him to curate the financial news you need to know about.

Lowest-rated US bonds end the year with a bang*

Publication: Financial Times
Investors have been scrambling to buy the bonds of the riskiest US corporate borrowers as the year draws to a close, underscoring a desperate hunt for yield as interest rates remain rooted near historic lows. [Read more]
Why you have to read this
The stretch for yield continues as even the most speculative bond investments are attracting unsuspecting capital due to our current low rate environment.

A pioneer of negative rates pauses the experiment*

Publication: Wall Street Journal
Sweden’s central bank, one of the pioneers in wielding negative interest rates, became the first to end that policy Thursday, a move closely watched by other institutions that have resorted to what was supposed to be a radical and short-lived measure. [Read more]
Why you have to read this
A rare move by a central bank that is realizing that the negative repercussions of rate below zero is outweighing any theoretical benefits.

Fuzzy math that fueled junk debt boom Is sparking jitters

Publication: Bloomberg
Imagine walking into a bank to borrow money. The loan officer might ask for your pay stubs and tax returns to prove your income, as well as for information about your debts and monthly expenses to determine whether you’re a worthy borrower. If the numbers don’t add up, you’d be out of luck. [Read more]
Why you have to read this
Issuers are continuing to get away with more and more sketchy adjustments to their metrics to help them borrow additional money at lower rates. Typical peak cycle behaviour.

*While we’re doing our best to deliver the latest and greatest industry news to you, sometimes our delivery can only take it so far. Please note this particular article is behind a paywall and will require a subscription for you to read it.