The Federal Reserve announced new programs on March 23, 2020. Global Liquidity Portfolio Manager, Kyongsoo Noh, discusses these new facilities from the Fed.
Markets, economy, stocks, growth, global, fixed income, international, asset classes
We raised the probability of Recession to 55% after virus-induced shocks, oil prices’ collapse and violent market volatility. We are de-risking, adding very high quality duration, while expecting credit markets to cheapen and reserve currencies to do well
What investors should consider
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.
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.