Investors around the world are increasingly curious about the Chinese fixed income market, which at USD 13.5trillion is now the world’s second largest.
Investors are concerned about the deterioration of corporate debt quality.
This paper examines the recovery progress seen in European markets since the start of 2015.
Vincent Juvyns and Alex Dryden discuss economic growth in the eurozone and the potential impacts of the slowdown in China and other emerging markets.
The economic backdrop in 2019 has been characterized by weakness in manufacturing being offset by the resilience of services and health of the consumer.
Assessing the impact and possible evolution of Fed policy
Markets have bounced back nicely in 2019 after a volatile December due to concerns of rising rates, peak economic and earnings growth and geopolitical tensions.
The growing amount of negative yielding debt overseas is weighing down on U.S yields as Treasuries become the best house in a bad neighborhood.
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”.
At its July meeting, the U.S Federal Reserve (the Fed) cut rates for the first time since December 2008.