Tag Archives: Interest rates

In-depth analysis on Credit Writedowns Pro. You are here: Markets » Are bond investors crying wolf? The Absolute Return Letter, June 2015 By Niels Jensen To me, consensus seems to be the process of abandoning all beliefs, principles, values and policies. So it is something in which no one believes and to which no one objects.” Margaret Thatcher Investment heavyweights challenge the consensus On a regular basis I challenge the consensus. It is part of my nature, I suppose, but it comes at...

Interest rates are the price of credit. They are the price of access to capital. Now, it is obvious that pricing credit is not tyrannical in and of itself. Interest compensates a lender for default risk and the risk of inflation eroding the purchasing power of the money that they lend. The tyranny I am getting at is subtle. It is the tyranny that Keynes pointed to when he proposed a euthanasia of the rentier. Keynes proposed that low interest rates would: mean the euthanasia of the rentier,...