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.
Assessing the impact and possible evolution of Fed policy
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.
The yield curve inversion, has become a trusted signal of impending economic turmoil due to the close historical relationship between inversions and recessions.
Trade was the hot topic of 2018, with the U.S. administration engaging in negotiations with many major trading partners.