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Selling Bond ETFs
November 20, 2015
<Click on graphic for larger image> Bloomberg.com – Bond ETF Withdrawals Surge as Investors Brace for Higher Rates Funds see sales in November for the first month since June Two-year U.S-German yield spread widest since August 2006 The divergence between a Fed set to tighten and a European Central Bank committed to looser monetary policy is… Continue reading Selling Bond ETFs
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The Rate Hike
November 20, 2015
<Click on chart for larger image> The Financial Times – Reasons to worry as Fed rate rise looms Sales growth is slowing while debt levels and defaults rise As the Federal Reserve at long last appears ready to remove the zero interest rate honeypot, bears are growling that the US is moving into the final… Continue reading The Rate Hike
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A Glut Of Crude
November 20, 2015
<Click on graphic for larger image> The Telegraph (UK) – Ambrose Evans-Pritchard: Goldman eyes $20 oil as glut overwhelms storage sites “The world is floating in oil. The numbers we are facing now are dreadful,” said David Hufton from PVM Group The world is running out of storage facilities for surging supplies of oil and may… Continue reading A Glut Of Crude
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Will A Fed Hike Heighten Currency Volatility?
November 20, 2015
<Click on graphic for larger image> The Economist – Buttonwood: What a carry on Monetary policy could drive currency volatility NEXT month will probably see the first great divergence in monetary policy since the financial crisis of 2008. The Federal Reserve is widely expected to push through a rate increase—its first since 2006. But the… Continue reading Will A Fed Hike Heighten Currency Volatility?
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Will QE and Negative Interest Rates Become Permanent?
November 20, 2015
Bloomberg Business – Central Banks Fight to Ensure Crisis Tools Become the Norm Negative rates, QE may become part of permanent arsenal Critics wonder if central banks are overreaching mandates Central bankers say they are just doing their jobs. They have mandates to keep prices stable, and in the Fed’s case, to keep unemployment at… Continue reading Will QE and Negative Interest Rates Become Permanent?
Newsclips
Is The Fed Too Big?
November 20, 2015
The Wall Street Journal – Jeb Hensarling: Reining In a Sprawling Federal Reserve The Fed’s greater powers increase the need for close scrutiny of its activities. Since the 2008 financial crisis, the Federal Reserve has morphed into a government institution whose unconventional activities and vastly expanded powers would scarcely be recognized by drafters of the… Continue reading Is The Fed Too Big?
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Unsecured vs. Secured Borrowing
November 20, 2015
<Click on graphic for larger image> FT Alphaville – When unsecured is cheaper than secured borrowing A strange thing is happening in money markets: the cost of borrowing unsecured wholesale funds is now below the cost of borrowing secured funds. The problem, according to repo dealers, is that new leverage ratio rules are set to… Continue reading Unsecured vs. Secured Borrowing
Newsclips
Capital Flight From China
November 20, 2015
Bloomberg.com – China Cracks $64 Billion `Underground Bank’ Moving Money Abroad One alleged offender set up firms in Hong Kong: state media China is trying to control capital flows, limit corruption China said it cracked the nation’s biggest “underground bank,” which handled 410 billion yuan ($64 billion) of illegal foreign-exchange transactions, as the authorities try… Continue reading Capital Flight From China
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Pension Funds
November 20, 2015
<Click on graphic for larger image> The Economist – Investing in a world of low yields: Many unhappy returns Pension funds and endowments are too optimistic Elroy Dimson, a professor at both the Cambridge and London Business Schools, is the co-author of a study of investment returns, covering 23 countries and more than a century… Continue reading Pension Funds
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IS EM Cheap?
November 20, 2015
<Click on graphic for larger image> The Financial Times – Emerging market equity valuations slide to record low Analysts wary of calling market bottom as headwinds chill sentiment The sell-off in emerging market equities has pushed valuations to an all-time low, by one measure at least, reflecting the marked underperformance of the asset class since… Continue reading IS EM Cheap?
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Do Slumping Commodities Matter?
November 20, 2015
Reuters – Global shares march on as alarm bells ring for metals World shares headed for their best week in over a month on Friday, though alarm bells over global growth were ringing in metals markets as copper hovered at its lowest level since 2009 and nickel since 2003. The commodities crunch was compounded as… Continue reading Do Slumping Commodities Matter?