How Strategists and Investors See Coronavirus Playing Out

Economists and investment strategists are pretty much in line with respect to intensifying Coronavirus risks over the short term, with however less uniformity of view in terms of the medium term ramifications for the global economy. Source: Bloomberg via GARP (Bloomberg) — A raft of new coronavirus cases in numerous countries outside China over the…

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Fed’s Powell says economy in good place, warns on coronavirus

Fed Chairperson Powell calls current policy stance “appropriate”, with the economy in a “good place. Source: Thomson Reuters WASHINGTON (Reuters) – Federal Reserve Chair Jerome Powell told Congress on Tuesday that the U.S. economy is in a good place, even as he cited the potential threat from the coronavirus in China and concerns about the…

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City of London’s Post-Brexit Outlook Dimmed by Political Spat

London’s dominance as European financial center threatened by post-Brexit politics and political wrangling. Source: Bloomberg via GARP (Bloomberg) — Talks on the post-Brexit future of European capital markets have largely avoided the toxic haggling of the broader negotiations — until now. U.K. Chancellor of the Exchequer Sajid Javid and chief European Union negotiator Michel Barnier…

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Can active management pay for itself in fixed-income funds?

While using low-cost bond ETFs for the fixed-income portion of a portfolio seems like the right approach, some say active bond fund management may be a better fit. Source: MoneySense With seemingly perpetual low interest rates—and even the threat of negative interest rates, as seen in parts of Europe and elsewhere—does it make sense to…

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Rush to Green Sparks Concern of Bubble in ESG Assets

What looks on the surface like a “bubble” in the so-called “Green” ESG trade may well become the new normal. Source: Bloomberg via GARP (Bloomberg) — The overall market may be held in sway by developments in the coronavirus outbreak, but demand has been buoyant for stocks based on environmental, social and governance factors. So…

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AI Will Transform Financial Services Industry within Two Years

The comprehensive and global study confirms that AI is affecting the financial system at an accelerating pace. Source: moderndiplomacy A new survey released by the World Economic Forum and the Cambridge Centre for Alternative Finance (CCAF) finds nearly two-thirds (64%) of financial services leaders expect to be mass adopters of AI in just two years…

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Hunt For Yield Boosts Corporate Bond Sales and Prices

Investment-grade corporate bond issuance has reached $140 billion this month, the second strongest January in the past decade behind 2017. Source: The Wall Street Journal Corporate bond prices pushed higher Friday, extending a rally that has spurred a wave of issuance by companies of all kinds. New bond sales by U.S. high-yield and investment-grade companies…

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Green bonds to the fore as investors hedge against climate risk

Green and sustainable bond issues hit record-breaking levels in Canada in 2019 with attractive financing levels, appealing to a more diversified investor base. Source: Financial Post Growing pressure across financial markets to consider environmental impact and risk as a major plank in investment decisions helped push green and sustainable bond issues to record-breaking levels in…

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