What’s going on? The Fed indicated that it’ll start tapering (slowing) its bond-buying program before the end of 2021 – just like investors expected. What does this mean? In 2020, the Fed cut interest rates to near-0% and started buying up $120b worth of bonds/ month. That flood of cheap money actually helped the economy stay alive…
Tag: bond
Ep 145: Eurozone bond yields are promised not to rise
What’s going on? The European Central Bank promised to keep eurozone bond yields from rising. What does that mean? Like the US, the eurozone’s pumped lots of money into the economy to keep things stable throughout the pandemic. Now that a recovery’s near, investors are worried that those money would lead to inflation, forcing the…
Ep 124: Vaccines elevates investments in ETFs
What’s going on? Investments in ETFs in Europe reached their highest levels since December 2019. An exchange traded fund (ETF) is a basket of securities that trade on an exchange, just like a stock. What does this mean? Investors have been celebrating the potential coronavirus vaccines by loading up on stocks: ETFs in Europe: raked…
Ep 115: Courtroom Drama
What’s Going On Here? German courts ruled that the European Central Bank’s (ECB’s) economy-boosting quantitative easing program might be unconstitutional. Quantitative easing (QE) is when a central bank buys government bonds from the market and, in doing so, puts cash to work doing all sorts of productive things for the economy. What Does This Mean? German courts don’t think…
Ep 89: Vingroup plans Thai bonds as funding options narrow
What’s going on here? Vingroup, Vietnam’s largest company, plans to issue this year its first baht-denominated bonds as the sprawling conglomerate (1) seeks to expand its loss-making car business and (2) has exhausted its funding options at home. What does this mean? Opportunities and risks from Baht’s appreciation The baht strengthened 8% against the U.S….
Ep 43: We The People
What’s Going On Here? A new report from investment bank Morgan Stanley advises clients to shy away from stocks – but WeWork may have a workaround for that… What Does This Mean? Global stock markets are up 16% this year. But with economic conditions worsening worldwide, Morgan Stanley thinks that company profit forecasts look overly optimistic – and so…
Ep 1: Bonds Take A Turn
What’s Going On Here?The gap between what long- and short-term government bonds pay investors has inverted more widely, potentially foretelling recession. (The gap between what long- and short-term government bonds indicates the spread rate spread. A small spread means interests rates are expected to decrease, which lowers the economic activities.) What Does This Mean?Yields on…
with HT 