Stocks and Bonds Together

There is no surprising that the rising stock market has since been held in conjunction with the rise of the bonds, the yield of government bonds to 10 years back from 4% to 3.50%.
In my opinion, the phenomenon is rather healthy. It is true that in times of intense crisis, we see the fall of actions coincide with the rise of the bonds, in a movement of flight to quality. This divergence implies then a very strong rise in the risk premium on equities.
In an assessment of market shares made by discounting future cash flows, the relevant discount rate is the rate "risk free" government bonds plus the risk premium on the market. This means that the increase of joint stocks and bonds is reflected, side actions, lower the discount rate as a result of lower risk-free rate. Looking back a little, we know that rising stock between 1995 and 1999 could be largely explained by lower bond yields during this period.
In recent months, there was again a decline in risk premium, which can be read for example in the course of corporate CDS and in reducing the implied volatilities of options and that improved earnings expectations.
Decrease the risk free rate, reducing the risk premium, higher earnings forecasts: These three elements combine to explain the current rally in equities.
Whether it goes well in the optimism is that another story.

Calendars for Charity

The promotional gift items are the corporate give ways by most of the companies to promote and popularize their brand and their image. These could be anything from calendars to a simple key chain. These could be gifted to potential customers to please them and thereby keeping them abreast. The utility item such as calendars are regularly used and valued by all. The bright colors and the designs of calendars register your logo in the minds of potential customers. Creating a calendar is something you can start on your own but attracting your viewers needs some expertise. Here The Calendar Company extends their helping hands to you.

The Calendar Company is the one stop for the best personalized calendars. They are experts in calendars printing of various sizes that include slim line calendars to booklet calendars. They are the masters in printing charity calendars too. The calendar company keeps your budget in mind and gives you a maximum benefit for your well spent money.

The company which gifting charity calendars are not only gives more exposure to their company logo but also serve for a noble cause. Yes, the charity calendars helps to raise funds for a noble cause. The company which uses charity calendars as promotional gifts indirectly donates to the worthy charities there by using charity calendars as promotional calendars.

The calendar company will assist you in creating a charity calendars. They help you to choosing the right subject for your charity fund raising calendar. They will assist you in getting and arranging the right pictures or the art work for your charity calendars. If the charity fund raising calendars are ordered by organization itself then the calendar people assist you in marketing too. Creating a calendar with Calendar Company is an excellent pleasing experience. Last but not the least the customers will enjoy your novel creation every day of the year.

Euro fears the fear of contagion from the debt crisis

After stabilizing euro, the euro does not escape the fears in financial markets. Last week the European currency dropped below $ 1.40 in session, a level it had not reached the past two months, which could provide some contagion of debt.

It may be that the Euro has slipped because of the spectrum of contagion those folds once again on Europe. Until the debt crisis seemed confined to the three countries most vulnerable to the euro area, Greece, Ireland and Portugal, the euro seemed to regain its natural color.

For about two months, the euro had not reached such a level. The slump in the currency of 1.59% to 1.3969 dollar is a sign that can be described as disturbing. The crisis of European sovereign debt threatens to turn into a crisis for the euro, says an economist at RBS.

However, political leaders want to dampen the atmosphere by ensuring that this phenomenon is a crisis affecting some countries of the monetary union but say, otherwise there are several reasons for thinking a resurgence effects contagion more brutal.

In terms of the following reasons, the market no longer believes that the tools established by the government to stop the debt crisis are sufficient, the restructuring of the Greek debt undermines the stability of other countries and political risk remains very high.

Despite this climate very offensive, the European commission recently  raised 4.75 billion Euros of bonds to 10 years and this, through the mechanism of financial stability (MESF) to fund aid to Ireland and Portugal.

What is SubPrime Crisis? Part.2

Credit agencies specialize in subprime collapse and the financial world follows. What relationship there between the U.S. housing market and the global economy? The answer lies in the word "securitization" To summarize; securitization is to transform its debts or other financial assets into securities that can then discuss the financial markets.

To finance these loans, the specialized agencies transformed risk loans granted to their client’s financial products that would be traded on financial markets. Financial products created were classified as high-risk products and products like any risky potential gains are much greater than other products without risk. As the U.S. housing market had risen in real estate related products for more money but since the summer of 2007.


Anyone wishing to generate significant capital gains has to accept this kind of high risk. Excluding finance against certain products, most of financial products sold, were fairly opaque to the "fill" of various financial products without specifying its nature as subprime "securitized." Banks and institutional investors bought financial products without knowing that they contained subprime-related products.

     A large number of banks have in their portfolios of subprime-related products leading to the fall in the value of their portfolios following the sub prime crisis.  Unable to identify clearly the financial products purchased containing products related to subprime, no Bank, no investor is able to measure the real impact of the crisis on their portfolios. The defaults of subprime loans in the U.S. are at the early, early impairment placed by investors are only the beginning of the crisis.

   Banks do not assess their knowledge related to subprime losses, bankruptcies of several dozen organizations credit risk and market stress pushing banks to conduct extremely suspicious and dare them to lend more money for fear of not being reimbursed following a hypothetical bankruptcy of the borrower.

The crisis of summer 2007 caused many challenges and pointed out the following discrepancies.
     One of the key players in finance is singled out, these are the rating agencies that failed to anticipate the decline in U.S. housing market and lower the rating agencies to credit risk.
     Non-transparency of financial products linked to subprime mortgages and bad categorization are also challenged: Some products were produced in monetary corresponding to products of low risk.

What is SubPrime Crisis? Part.1

The subprime crisis hit the world of finance in August 2007. The consequences have been immediate and impacts on the economies of societies and countries are still not clearly known.  Before returning to the origin of the crisis and its ripple effect, Let us first understand what is subprime.
The subprime mortgages are subprime.  In simple words, the principle allows a person to purchase a property for a fixed interest rate particularly low the first 2 years (e.g. 1.45%) and then switch to a floating rate contains a risk premium (e.g. 8%). In return, the property is mortgaged.

In this case, credits are awarded after consideration of the desired value of the property contrary to practices where banks extend credit after the creditworthiness of the borrower. The monthly payments increase significantly after the second year, making it impossible for most buyers to repay their loans.
The latter sold their property with a capital gain (the U.S. housing market growing 10% per year) enabling them to repay the loan and interest. In 2007, Beneficiaries wishing to sell their subprime real estate at the end of second year was leading a face down in the U.S. housing market.
The property value has decreased since purchase and no longer allows the sale to repay the subprime credit. The borrower's credit subprime personal files for bankruptcy, the bank gets the house and put on sale. It will be sold with a significant loss may go beyond 20%.

At least, nearly 1.5 million procedures were personal bankruptcy during and after the U.S. Senate nearly 3 million households could lose their homes. Credit agencies are faced subprime loan defaults pile up and generate huge losses due to losses made on the sale of foreclosed homes. These significant losses have caused the bankruptcy of more than thirty credit agencies; they always present provisioning amounts of losses of hundreds of millions of dollars.