Lending, borrowing and investing in a negative rate world
Markets, economy, stocks, growth, global, fixed income, international, asset classes
We cut the chances of recession to 25% after a thaw in the trade war and a year of rate cuts; our forecast is for sub trend growth. Favored sectors include emerging market local currency debt and higher rated short-duration securitized credit.
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.
Global capital requirements and systemic risk within the insurance industry dominated the conversation at this year’s NAIC International Insurance Forum.
Since the financial crisis, for a relatively liquid investment CLOs consistently have had the highest spreads net of capital costs for US life insurers.
Market downturn, bear market
Is the gap closing between US equity returns and the rest of the world’s?
What are the implications of quantitative tightening for the global bond market?