Germany shines amid dark clouds

Germany shines amid dark clouds

While Germany emerged from Europe’s recent turmoil with accelerating economic growth and strengthening exports, the Eurozone still faces imbalances. Growth accelerated despite debt turmoil For the second quarter, Germany reported a stronger-than-expected expansion of 2.2% — its best quarterly result since 1990, the year of the country’s reunification. It achieved this despite the market turmoil

Derivatives and financial reform

Derivatives and financial reform

The recent Dodd-Frank Act introduced sweeping changes to the derivatives market. Daniel Farrell, Putnam’s Head of Equity Trading, discusses how Putnam uses derivative contracts and the impact of the bill on Putnam equity funds. Broadly speaking, what are derivatives and how are they used? Derivatives are investments whose value is based on — or “derived”

The Fed’s exit from the mortgage market

The Fed’s exit from the mortgage market

On the heels of the Lehman Brothers bankruptcy in late 2008, the U.S. Treasury and Federal Reserve Board (the “Fed”) rolled out a number of unprecedented programs designed to inject liquidity into the financial system. The mortgage purchase program began in conjunction with the Troubled Asset Relief Program, or “TARP,” and both were designed to

Portugal’s debt downgrade signals larger struggle

Portugal’s debt downgrade signals larger struggle

The recent downgrade of Portugal’s sovereign credit by Fitch Ratings is symptomatic of issues in the broader region rather than an isolated event. In addition to Portugal, we have been watching the deteriorating fiscal position of several peripheral European countries. We’ve also observed that by participating in the EU, there are limitations on the ability