Author profile

Pierre Chartres

Years in the bond markets: 12

Specialist subjects: Macro economics and European credit

Likes: football, skiing, golf, Skysports (everything except the F1 stuff), French Basque Country

Heroes: Chesley Sullenberger, Felix Baumgartner

QE goes global: the case of Indonesia

The COVID-19-induced slowdown of the past few months has been different from past crises for a number of reasons. One of the most significant differences has been the greater ability of emerging market central banks to provide support to their economies, as we wrote about a few weeks ago. An interesting example is that of Indonesia. Last week, Indonesia’s central bank (Bank Indonesia – “BI”) c…

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China’s bond markets once again prove resilient amidst COVID-19 crisis

Earlier this week, China’s Central Bank (the PBoC) announced a further cut to the 1 year loan prime rate, one of its key interest rates, from 4.05% to 3.85%. This further loosening of monetary policy demonstrates that, as China attempts to extricate itself from the COVID-19 crisis, the domestic and international pressures on the world’s second largest economy remain severe, and the outlook hi…

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After FTSE Russell index delay, what’s next for Chinese government bonds?

Yesterday evening, FTSE Russell announced that
China Government Bonds (CGBs) would not be added to the widely followed FTSE
World Government Bond Index, but remain on the watch list for inclusion until
further review. This came as a surprise for most investors: Bloomberg Barclays
and JP Morgan both recently added CGBs and bank policy bonds to their index
suites. In challenging times for the Ch…

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Bond indices are shifting their attention to China – so should you

It is widely recognized that China is globally well-integrated from a trade perspective (it accounted for 13% of total world exports in 2017 according to the WTO). Yet in comparison, its financial markets remain in relative isolation. Indeed, despite having the 2nd largest equity and 3rd largest bond markets in the world (currently around $13 trillion), foreign participation in these markets re…

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The MAS and its peculiar tightening policy

In its latest semi-annual statement, the Monetary Authority of Singapore (MAS) said it would slightly tighten monetary policy by increasing the slope of appreciation of the Singapore dollar Nominal Effective Exchange Rate’s (S$ NEER) policy band. This is the second increase this year, following one in April, and it confirms the broader monetary tightening recently seen in many Asian economies, …

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BVTV: did ‘super week’ justify its billing?

The combination of the US-North Korea summit, crucial Brexit negotiations in the UK, mounting trade tensions, and a raft of central bank activity led some commentators to forecast that this would be the biggest week of the year. In fact, the beginning of the week was rather underwhelming, and it took a dovish ECB to really move markets. See how it all unfolded on today’s episode of Bond Vigilan…

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BVTV: Can Abe make Japan great again?

Having eventually emerged from the shadow of its lost decades, Japan is currently enjoying its second-longest economic expansion since World War II, having grown for seven successive quarters. John Lothian, deputy fund manager on M&G’s Japanese equity portfolios, joined me this morning to discuss the outlook for the BoJ and what the positive macro-outlook means for Japanese asset prices.

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