Middle East fixed income proves a safe haven within emerging markets Source: The National Emerging markets are rarely uneventful, with no shortage of idiosyncratic risks that require constant vigilance. These events can dominate investor thinking, making it easy to neglect the broader opportunity the asset class offers. Indeed, there are parts of the emerging market…
Demand for Chinese convertible bonds rises as fixed income investors look to boost returns Source: Bloomberg Shut out of a world-beating rally in equities, China’s fixed income investors are chasing the next closest thing. The battle for equity-like returns is driving up interest in the country’s nascent convertible bond market. Showing just how coveted the…
Bank of Canada held rates steady but said more increases would be necessary even though oil prices and a weak housing market will harm the economy in the short term. Source: Thomson Reuters Governor Stephen Poloz said the challenges were temporary and he still believed the economy would at some stage be “operating at full…
The Bank of Canada hiked interest rate and acknowledged for the first time in more than a decade it expects to completely remove monetary stimulus from the economy. Source: Financial Post The Bank of Canada can finally see “home” on the horizon. Governor Stephen Poloz and his deputies on the Governing Council raised the benchmark…
The revision of the NAFTA agreement has eased concerns of an economic slowdown for the United States, Mexico and Canada causing U.S. government bond prices to fall along with a rising yield. Source: Wall Street Journal U.S. government bond prices fell Monday as the revision of the North American Free Trade Agreement eased investor concerns…
The Federal Reserve has raised the US short-term interest rate signalling it will go ahead with plans to tighten policy despite concerns of a trade war. The Fed will tighten monetary policy as the unemployment heads towards record lows and wage growth accelerates at its quickest pace in nine years. Source: Financial Times The Federal…
The Royal Bank of Canada will be the first Canadian financial institution to sell bail-in eligible securities. The bail-in eligible securities can be converted into equity should a bank get into trouble and will eventually replace deposit notes for Canadian banks. Source: Bloomberg Royal Bank of Canada is getting ready to sell the country’s first…
The yield curve has fallen to its flattest level since the 2007-09 recession which can cause bond-market investors to take notice and start bracing for a possible inversion. Traditionally safe assets like long- and short-term bonds have fared a bit better following yield-curve inversions. Source: Wall Street Journal The yield curve—the difference between the interest…
As U.S. tax cuts prompt Apple Inc. and other tech companies to bring home their overseas cash hoards, it’s leaving a void in the market for short-term corporate bonds, where those firms had invested much of the money. That’s now making it more expensive for other companies to borrow. Source: Bloomberg Once the biggest buyers of short-dated corporate…
The yield on the benchmark 10-year Treasury note surged to 2.727 percent on Monday, its highest since April 2014, as investors bet on an accelerating economy and inflation. Source: CNBC A falling dollar this month has also helped drive yields higher, as traders worry it may reduce the appetite for Treasurys, while also boosting inflation. The 10-year yield…
LONDON, UNITED KINGDOM, ENGLAND, February 27, 2024 /EINPresswire.com/
