Monthly Archives:

March 2020

Corona-Crunch: one of the most violent corrections on record

A lot can change in a month. While many of us grapple with the new daily regime of lockdowns, remote working, home schooling and scouring the shops for that last fabled toilet roll, it’s worth taking a moment to review what has happened to credit markets over the past few weeks.

Even in social isolation, one would be hard pressed to miss news headlines reporting the sell off in equities and…

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Emerging market bonds in the time of coronavirus

Emerging markets have recently seen other impacts than the tragic ones of COVID-19 outbreaks on their societies and economies, with spreads widening considerably. Three factors have been at play. First, was a rapid sell-off in global stock markets that followed the realisation that the global economy is heading for a recession. Second, investors shifted to intense risk aversion and the demand …

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This time is different: a stay at home Flash Crash t-shaped recession

Whenever there is the threat or the reality of recession, it usually follows a typical pattern. It is engendered by tight financial conditions, a real or market bubble bursting, a dramatic rise in the price of oil, or a combination of the above. This time it is different: a stay at home recession.

The 2020 economic slowdown isn’t due to any of the usual suspects, namely the US …

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“More: The 10,000 Year Rise of the World Economy” by Philip Coggan. Win a copy of the book in our competition.

Last week I interviewed Philip Coggan, the Economist journalist who writes the Bartleby column. His new book, “More: The 10,000 Year Rise of the World Economy” is out now, and it’s essential reading for anyone at all interested in the development of the global economy from the caveman through to the tech giants of today. One review of the book I read suggested it was a 21st century update to A…

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Lower oil prices for longer? The impact on emerging market oil producers

By Claudia Calich, Gregory Smith and Eldar Vakhitov

Market expectations of global oil prices have shifted several times already in 2020. The year started with short-lived scenarios of potentially higher prices, as tensions between the USA and Iran dominated the headlines. However, as COVID-19 tragically spread, the virus put a clear dent into expectations about global growth. Curfews and ef…

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ECB to the rescue: Whatever it takes 2.0 ahead?

It’s been a rough two weeks in bond markets, to say the very least. Risk-off sentiment is reigning supreme. In Europe, looking at my screens this morning, iTraxx Xover—a bellwether of European high yield credit risk—jumped to its widest level since mid-2013, while the yield on 10yr German Bunds dropped to an all-time low below -0.8%.

In previous times of market turmoil, the European Cen…

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