{"id":18495,"date":"2012-04-05T09:33:47","date_gmt":"2012-04-05T13:33:47","guid":{"rendered":"http:\/\/www.thedisciplinedinvestor.com\/blog\/?p=18495"},"modified":"2016-09-20T11:28:42","modified_gmt":"2016-09-20T15:28:42","slug":"euopean-yield-and-risk-update","status":"publish","type":"post","link":"https:\/\/thedisciplinedinvestor.com\/blog\/2012\/04\/05\/euopean-yield-and-risk-update\/","title":{"rendered":"European Yield and Risk Update &#8211; Have You Seen Spain&#8217;s Markets?"},"content":{"rendered":"<p>The problems in Europe are popping up again. The yield on Spanish bonds spiked and there is a general sense that the region is just about guaranteed to enter a recession, if it hasn&#8217;t already. Markets in Europe were hit hard and the Euro was off by another 0.75% to 1.314 at the close of the U.S. trading session.<\/p>\n<p>The Spanish bond auction was not well received and the <!--more-->government was not able to sell the entire inventory they had planned.<\/p>\n<p><a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/europe-yields.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-18498\" title=\"europe yields\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/europe-yields-610x435-1.jpg\" alt=\"\" width=\"610\" height=\"435\" \/><\/a><\/p>\n<p style=\"text-align: center;\"><a class=\"twitter-follow-button\" href=\"https:\/\/twitter.com\/andrewhorowitz\" data-show-count=\"false\">Follow @andrewhorowitz<\/a><script type=\"text\/javascript\" src=\"\/\/platform.twitter.com\/widgets.js\"><\/script><\/p>\n<p>Some insight on the charts below. In particular, note that an FX swap agreement is a contract in which one party borrows one currency from, and simultaneously lends another to, the second party. Each party uses the repayment obligation to its counter-party as collateral and the amount of repayment is fixed at the FX forward rate as of the start of the contract.<\/p>\n<p>When the Euro\/USD basis swap starts to move lower, it can be seen as a time when the risk of owning Euros over U.S. Dollars is increasing. Many believe that the -100 level is a key level that should be watched and -150 is a time when a crisis is occurring. Currently the level rests at -52.3, not that bad considering the levels we saw just a months ago.<\/p>\n<p style=\"text-align: center;\"><em>(CLICK TO ENLARGE)<\/em><\/p>\n<p>&nbsp;<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/eurorisk.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-18501\" title=\"eurorisk\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/eurorisk-610x663-1.jpg\" alt=\"\" width=\"610\" height=\"663\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/europestocks1-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-18503\" title=\"europestocks1\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/europestocks1-1.jpg\" alt=\"\" width=\"525\" height=\"244\" \/><\/a><\/p>\n<hr \/>\n<p style=\"text-align: center;\">Looking to invest in The Disciplined Investor Managed Growth Strategy?<br \/>\nClick below for the virtual tour&#8230;.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.thedisciplinedinvestor.com\/blog\/mailbox\/tdi-investment-fund\/\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/thedisciplinedinvestor.com\/blog\/wp-content\/uploads\/2012\/04\/TDIMG.jpg\" alt=\"\" width=\"212\" height=\"318\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The problems in Europe are popping up again. The yield on Spanish bonds spiked and there is a general sense that the region is just about guaranteed to enter a recession, if it hasn&#8217;t already. Markets in Europe were hit hard and the Euro was off by another 0.75% to 1.314 at the close of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[5,12],"tags":[481],"class_list":["post-18495","post","type-post","status-publish","format-standard","hentry","category-economy","category-markets","tag-economy","et-doesnt-have-format-content","et_post_format-et-post-format-standard"],"acf":[],"_links":{"self":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18495","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/comments?post=18495"}],"version-history":[{"count":0,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/posts\/18495\/revisions"}],"wp:attachment":[{"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/media?parent=18495"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/categories?post=18495"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thedisciplinedinvestor.com\/blog\/wp-json\/wp\/v2\/tags?post=18495"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}