Central bank policies are diverging like never before, with the European Central Bank and Bank of Japan setting deeply negative rates — and the BoJ attempting to influence the longer end of the curve — while the US Federal Reserve is on a rate rising path. That dynamic throws up opportunities and challenges for public sector borrowers, writes Craig McGlashan.
The Kangaroo market has faced a variety of challenges but, for each challenge, it has evolved to provide new pockets of value for investors and to meet borrowers’ requirements as they respond to the constantly shifting market realities. By Lewis McLellan.
Europe’s banks have struggled to move ahead with their capital plans during a torrid year for European primary bond markets. But with regulators starting to reveal far greater flexibility as they put the finishing touches to the post-crisis capital framework, there are more than enough reasons to feel optimistic about the road ahead.
The European corporate bond market received an extraordinary shot in the arm this year when it became the target of central bank intervention that triggered a surge in bond prices pushing investors into ever tighter positions. With negative yields spreading, just how low can corporate bonds go? Ross Lancaster reports.
The emerging market asset class has been boosted by inflows from a variety of sources from European equity funds to ETFs as investors go in search of increasingly hard to find yield. But as the sharp sell-off in the first half of September demonstrates, investors are easily spooked. Virginia Furness reports on a market steeling itself for the Fed’s next move.
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