Fed unwind to pressure spreads in 2019, warns Amherst

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Fed unwind to pressure spreads in 2019, warns Amherst

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Marriner S. Eccles Federal Reserve Board Building is located in Washington D.C., USA. It was designed by Paul Philippe Cret and built in 1937. It was previously called Federal Reserve Building. | Roman Babakin/R.Babakin - stock.adobe.com

Analysts at Amherst Capital Management are predicting that the continued unwind of the Federal Reserve's holdings of Treasuries and MBS and increased deficit spending from the US government could lead to even wider spreads in credit markets throughout 2019.

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