With US government bond yields recently rising again at the long end, despite the Fed cutting interest rates in December, and gold and silver also reaching new record highs of almost USD 5,000/ounce and over USD 100/ounce respectively, the question arises as to whether high-coupon corporate bonds such as those issued by Nakiki SE are now preferable. Andreas Männicke gives his assessment of this in his stock market newsletter East Stock Trends (www.eaststock.de ) and also in his new EastStockTV video. Episode 264 on YouTube.
Trump makes a deal with the EU regarding Greenland
After threatening punitive tariffs on countries that oppose Trump’s annexation of Greenland ‘for security reasons’, Trump has now reportedly agreed a deal with the EU in Davos, the details of which are not yet known. Following Trump’s speech in Davos, tempers have calmed down somewhat, as Trump hinted at an agreement with the EU and ruled out military action. Trump now no longer wants to annex Greenland, but to cooperate with partners.
US in power struggle with China
Trump wants to withdraw more from Europe and focus more on China in his new security strategy. However, Trump is also continuing his peace efforts in the Ukraine war through his representatives. In Abu Dhabi, negotiations are taking place for the first time with representatives from the US, Russia and Ukraine to explore the conditions for peace. At the same time, Russia has again bombed Ukraine’s infrastructure, leaving many homes in Kiev without electricity and heating. However, Trump’s main opponent is China in the battle for world supremacy, where the availability of raw materials plays an important role. So it is also about a new world order in which the US wants to maintain its dominance. The BRICS Plus countries, on the other hand, are striving for a multipolar world order. This power struggle, primarily between the US and China, will keep us busy throughout the year. The question is whether he will be able to continue to finance the mega defence budget in the future when high interest rates are weighing on the US federal budget.
US government bonds under pressure
However, Trump must admit that international capital pools are not only holding back on buying US government bonds, but are even selling them, as was recently the case with a Danish pension fund. China and India are also gradually reducing their holdings of US government bonds. In this respect, it is of little use to Trump to constantly put pressure on Federal Reserve Chairman Gerome Powell to lower interest rates more quickly.
Is the Fed about to launch a new round of quantitative easing?
Due to low demand, yields on 30-year US government bonds recently rose to over 4.8%. In Japan, too, yields on Japanese government bonds rose to over 3%. Both countries are heavily indebted and now have to spend much more money on interest and repayment, which is putting a strain on their respective national budgets. If yields on US government bonds rise above 5%, the Fed will (have to) intervene and buy up large volumes of US government bonds, i.e. engage in ‘quantitative easing’ (= printing money) in order to avoid a major financial crisis.
Gold and silver records as harbingers of a new financial crisis?
The huge rise in the price of gold to around USD 5,000 per ounce and silver to over USD 100 per ounce are clear signs of a possible impending financial crisis in the US and Japan. In this respect, corporate bonds with high coupons, such as the new bond from Nakiki SE, are now coming back into focus. Even Trump himself is now focusing more on cryptocurrencies such as Bitcoin and corporate bonds such as those from Netflix, Warner Bros, Discovery, Boeing, Occidental Petroleum and General Motors as part of his personal asset allocation.
New corporate bond from Nakiki SE with a high coupon of 9.875%
High interest rates have long been considered a relic of the past. But that is precisely what is changing noticeably at the moment.
Political influence on monetary policy, high valuations on the stock markets and a phase of reorientation in cryptocurrencies are leading to bonds with high, clearly defined coupons once again becoming the focus of investors’ attention.
In this environment, a corporate bond with a 9.875% interest rate is currently attracting particular attention. The reason for this is less to do with short-term price speculation and more to do with ongoing income, which is once again becoming significantly more important in an uncertain market environment. This is precisely where the Bitcoin treasury bond from Nakiki SE, which is tradable on the Frankfurt Stock Exchange under WKN A460N4, comes in.
Politicians and central banks are focusing on interest rates
The coming week is likely to be decisive for the market. The quarterly figures from Meta Platform, Microsoft and Apple coincide with a meeting of the US Federal Reserve. At the same time, Donald Trump is increasing public pressure on the Fed to lower interest rates more quickly.
This conflict of interests is causing increasing uncertainty. Many market participants are questioning not only the future development of interest rates, but also the independence of monetary policy. For investors, this brings a classic question back to the fore: How can predictable returns be achieved – regardless of short-term market movements?
Bitcoin: consolidation instead of speculation
After last year’s strong rally, the Bitcoin market has recently calmed down significantly. Many observers view this phase of consolidation as constructive. Instead of short-term euphoria, structure, liquidity and long-term strategies are coming to the fore.
Against this backdrop, concepts that view Bitcoin not as a pure speculative asset but as part of an overarching treasury strategy are gaining in importance.
Why the coupon is crucial again
In an environment of political tensions and unclear interest rate prospects, current interest income is regaining importance. After years of zero and low interest rates, the coupon is once again becoming a key decision-making criterion for many investors.
A coupon of 9.875% is once again a real selling point in a market that has long been characterised by extremely low yields – especially if the bond is tradable on the stock exchange and has a unique securities identification number.
The Nakiki bond in the current market environment
Against this backdrop, it is striking that the Nakiki bond derives its appeal primarily from its clearly defined interest rate. The coupon of 9.875% is well above the market average and acts as a yield anchor, regardless of how the equity or crypto markets perform in the short term.
The fact that the bond is listed on the Frankfurt Stock Exchange under WKN A460N4 underlines its capital market-oriented character and provides additional transparency for market participants.
High interest rates, political influence and a phase of reorganisation in the crypto markets are currently changing the views of many investors. In this environment, bonds with attractive coupons are making a noticeable comeback.
A bond with a 9.875% interest rate, which is tradable on the Frankfurt Stock Exchange under WKN A460N4, is very much in tune with the spirit of the times. The Nakiki Bitcoin Treasury bond is a prime example of this development – not because of short-term headlines, but because of interest income, which is once again clearly in focus in the current market environment.