When a central bank moves interest rates there are three transmissions mechanisms between how rate movements directly influence the real economy.
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.
Executive summary of JPM's long-term capital market return assumptions
Executive Summary. Prolonged period of delevraging could mean low interest rates; subdued growth.
Over the last decade, investors have been incentivized to “hunt for yield” in riskier asset classes by unorthodox monetary policy, which sucked the yield out of traditional “safe havens”.
Emerging Market Equity Views : Favorable global cycle and USD outlooks create a positive environment
While tariffs remain a concern, the key issue is the degree—which we deem moderate—of U.S. recession risk. The current global backdrop makes the U.S. dollar unlikely to strengthen. Earnings growth expectations are modest, valuations are undemanding
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A condensed version of the full report with a synopsis of our macro and asset class assumptions. US version.
US economy, equities