- Cross road: the landscape of the fixed-income market
Cross road: the landscape of the fixed-income market
Monday 14 May 2018
Research / Market
Two events pushed down Eurozone sovereign spreads in 2017: the French presidential election in April & May, which dissipated investors’ fears about Eurosceptic movements, and the announcement on 26 October of a smaller-than-expected reduction in ECB’s QE for 2018 (monthly purchases lowered from € 60 bn to €30bn).
However, it is important to point out that the fundamentals of European sovereign bonds have improved recently and provide strong support for this segment of the market.
Turkey shakes summer thin markets, but contagion risk is contained
“The domestic boom has been financed by private debt (mainly external debt). Well before this week’s crisis, Turkey was the most vulnerable country in our EM ranking”.
Global Investment Views - August 2018
"Concerns about trade continue to take centre stage. While US assets have so far been resilient amid escalating protectionist rhetoric, markets targeted by tariffs are under pressure."
Where will the next financial crisis come from? Are we ready to confront it?
"The world is not yet completely out of the 2007- 2008 financial crisis, but the risk of a new crisis already arises. The theme of “regime shift” (volatility, interest rate, inflation, etc.) has resurfaced, which led to a marked correction in financial markets in January – February."