In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
The first rate rise in a decade was widely expected by markets.
Markets, economy, stocks, growth, global, fixed income, international, asset classes
David Kelly, the Fed, interest rates
Market sentiment towards the Chinese currency has shifted significantly
Our view over the past few quarters has been that EURUSD should be rangebound, as the cyclical outperformance of the US economy is offset by the eurozone���s relatively better balance of payments position.
Today the Bank of England���s (BoE) Monetary Policy Committee met, and decided unanimously to keep interest rates on hold at 0.75%.