Christmas has come early for Europe, with Mario Draghi’s goodbye present to the market of further quantitative easing (“QE”). The ECB has kicked off its latest round of asset purchases. While this will undoubtedly be supportive for European credit, I feel much of the impact is already priced in to the secondary market. With a large book to fill, a significant part of the ECB’s ammunition is…Read the article
Financial markets can be a scary place for investors. The US economy is now in its longest expansion on record, the world is seeing record level of total debt and now even some corporate bonds have negative yields.
If you’ve carved a pumpkin, got your Halloween costume and been to see the latest scary movie, there’s only one thing left to do: take a look at the Bond Vigilantes team’s 2019…Read the article
Global bond markets rallied over the past five trading days as plunging oil prices, weak US data and disappointment over the real impact of a 90-day trade truce between the US and China led to a sharp flattening of the US yield curve, which is now only 12 basis points from inversion. The flattening intensified after US President Trump toned down his recent comments about the US-China trade agre…Read the article
After a turbulent start to the month, the second half of August has turned out to be a much calmer period for financial markets. While geopolitical tensions have not gone away, investor sentiment is currently being well-supported by the favourable economic outlook in the US, coupled with the prospect of a continued period of low interest rates. Global equity and credit markets produced further …Read the article
With the European Central Bank (ECB) purchasing €1.7bn of covered bonds last week, the Eurozone’s “QE-lite” programme has well and truly begun. Although the focus to date has been on covered and asset backed bonds, an article from Reuters last week spurred the market, due to a rumour that the ECB would soon be considering an extension to include secondary market corporate bond purchases. Althou…Read the article
The answer was the Bank of England’s Inflation Report cost £4 when it was first published in 1993, and now costs £3, deflation of 25%.
Congratulations to the ten winners picked randomly:
- Tim Cockram – Chetwood Wealth Management
- Simon Bird – Brewin Dolphin
- Alex Brandreth – Brown Shipley
- Robert Harper – Brewin Dolphin
- Ali Treharne – SFP Plymouth
- Mark Dobson – Charles Stanley
- R Knight – from A…
I’ve just finished reading Dan Conaghan’s newly published book The Bank: Inside the Bank of England. It’s very good – and essential reading for all bond geeks. We met with Dan a couple of weeks ago (he’s coming in for a lunch with a few clients next week) to talk through some of the themes in the book. First of all it’s a big surprise just how little has been written about the Bank of Englan…Read the article