The intricacies of the US residential mortgage market may be unfamiliar to many European investors but the recent technical factors at play have made it one of the most interesting parts of the credit markets recently. Over the last few weeks, we have seen acute liquidity issues and forced selling from market participants in certain areas.
The US residential mortgage market covers a wide v… Read the article
Global bond markets rallied after the US Federal Reserve (Fed) signalled on Wednesday what financial markets had been pricing in for months: the central bank will most likely retract from its rate hiking plans this year, given the global economic slowdown, lower oil prices and generally muted domestic inflation. The Fed also indicated its balance sheet may not shrink as much as expected as it n… Read the article
If investors enjoyed a dream Goldilocks scenario in 2017 in which growth was hot enough to lift earnings but not too much to warrant sharp rate hikes, many expected 2018 to be more like the year of the bear, marked by a significant rate hiking cycle – until last week. US Fed chair Jerome Powell said the current policy rate is just below the non-accelerating rate of inflation – a sign that the … Read the article