Post-Pandemic, Governments May Rethink Everything

One expected consequence of the Covid-19 crisis from a human and economic cost perspective, is that people will almost certainly expect and insist on greater resilience in the event of another crisis Source: GARP | Global Association of Risk Professionals The human and economic costs of the Covid-19 crisis are already enormous, and the final…

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Coronavirus Is The ‘Largest Insolvency Event’ In History

Former Wall Street money manager warns of the COVID-19 crisis as one of the biggest insolvency risks in history. Source: Forbes Bitcoin has largely failed to perform as a so-called safe-haven asset during the coronavirus crisis so far—though that could have begun to change. The bitcoin price fell sharply last month amid a broader market…

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U.S. Corporate Debt Market under Pressure

This high level of corporate debt has made the U.S, particularly vulnerable to sharp downturns in global economic activity. Source: S&P Global Since mid-February, the market has turned sharply down in response to the coronavirus pandemic. The S&P 500® has fallen about 32% from its peak this year. Equity volatility shot up, as VIX® went…

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The U.S. Economy Is Now in Uncharted Waters

Just how bad COVID-19 will ultimately be for the US and global economy is difficult to say, with no real frames of reference as precedent – the author discusses two extreme scenarios as a framework for what may be. Source: Bloomberg How bad COVID-19 will be for the U.S. economy is almost impossible to say,…

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Global Credit Market Seizes Up as Coronavirus Halts Bond Sales

Global corporate bond market door slammed shut on Coronavirus fears and uncertainty. Source: Yahoo Finance (Bloomberg) — The global credit machine is grinding to a halt. The $2.6 trillion international bond market, where the world’s biggest companies raise money to fund everything from acquisitions to factory upgrades, came to a virtual standstill as the coronavirus…

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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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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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Assets Invested in U.S. ETFs/ETPs Reach Record $4.42 Trillion At End of 2019

ETFs/ETPs listed in US attracted $56.15 billion in net inflows with Equity products dominating Fixed Income. Source: Nasdaq ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs/ETPs ecosystem, reported today that ETFs and ETPs listed in United States gained net inflows of US$56.15 billion during December, bringing year-to-date net inflows…

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Central-bank easing triggers record corporate bond issuance

Companies have taken advantage of low borrowing costs and high demand to sell more debt, allowing themselves to drop down the credit-ratings spectrum. Source: Financial Times Companies across the globe took advantage of lower borrowing costs to sell a record amount of bonds in 2019, prompting renewed concerns among policymakers about soaring levels of debt….

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