In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Investors were disappointedInvestors were disappointed that trade tensions re-escalated and the Fed viewed their actions as a ���mid-cycle adjustment".
On July 31st, The Federal Reserve (Fed) cut rates for the first time since 2008. In the immediate aftermath of this cut, the U.S. Dollar strengthened.
Bond yields remain at or near historic lows around the world, leading to a substantial increase in the value of pension plan liabilities.