Assessing the impact and possible evolution of Fed policy
Over the past few weeks, futures markets have begun pricing in an increasing chance that the Federal Reserve (Fed) will cut interest rates at its July meeting. This has also been reflected in the cash bond market, where yields out to the 6-month maturity
Market participants remain focused on downside risks, leading pessimism, rather than optimism, to permeate the investment landscape
A relatively benign G20 summit and expectations for easier financial conditions ahead have boosted demand for emerging market debt. However, areas of value can still be found.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Market volatility has come back with a vengeance. However, higher market volatility is normal in the later stages of an economic cycle.
Investors are concerned about the deterioration of corporate debt quality.
Following two years of double-digit positive performance, emerging market (EM) equities have reversed course this year.
The yield curve inversion, has become a trusted signal of impending economic turmoil due to the close historical relationship between inversions and recessions.