Two big defaults in the past few days, and more to come. Today’s episode also looks at rising U.K. debt/GDP.

Normally cutting rates sends a signal that the economy is getting a stimulus, that the amount of interest on savings is going to fall and therefore you should spend, spend, spend. But what if, as we move towards negative rates, it sends the signal that everything is broken and that actually you should save more to protect your family and business even though it will cost you?

Having been very sceptical about negative interest rates in the U.K. only a week ago, new Bank of England Governor Andrew Bailey seems to be changing his tune. And central banks around the world are also having this same debate.

With central banks and governments promising to support companies in multiple ways, including even buying the bonds of junk bond issuers, you might think that debt burdens don’t matter anymore. You’d be wrong.

In ancient times, at times of general economic distress, such as a crop failure, rulers would “wipe the slate clean” and cancel ALL society’s debts. There were winners and losers, but society as a whole benefitted. Coronavirus has caused debt burdens to explode upwards. Might we see something similar in the modern world?

Inflation turned negative in April, thanks to collapsing energy prices, but also as demand for consumer goods, like clothing, fell in lockdown. The Fed’s Jay Powell gives a speech today - will negative rates feature in response to negative CPI?

Negative yields are nothing new for most of the developed markets, but until the coronavirus hit, the US was a significant outlier. Last week the market’s expectations for the Fed shifted into negative territory for the first time ever. Is the Fed ready for the “minus sign”, and what would that do to the dollar’s ongoing strength?

“This Time is Different” was an economic hit when published in 2009. It’s a fascinating look at 800 years of government borrowing. But do the errors in its calculations undermine its message?

The US will be issuing around $4.5 trillion of Treasuries and Bills in 2020 - in this episode I suggest we look at demand, as well as supply when we consider what bond prices might do as a result.

Today I talk about bond issuance in both the credit markets and in government bonds. What’s the best way of issuing debt so that both buyers and sellers feel happy about the transaction?