Since the 2008 market dislocation, fixed-income investors have been prone to anticipate another major macroeconomic crisis, but there are signs developing that macro risks may be easing and more normal market conditions are taking root.
The U.S. dollar appears relatively stable in a world of structural imbalances.
In the years leading up to the global financial crisis, growth across a number of countries was relatively homogenous. That changed in 2008, as nations implemented markedly different policy responses to the recession. Many emerging economies that sidestepped the debt crisis altogether are now damping down rapid growth, while developed economies continue to experiment with
The unusual combination of challenges currently facing financial markets prompts investors to search for historic parallels. We find that today’s monetary and fiscal landscape looks a lot like that of Europe and the United Kingdom in the late 19th century. At that time, Europe had no effective monetary or fiscal policy with which it might
There are two main issues at stake in the European debt markets. The first is a short-term liquidity issue: Will these economically troubled European nations have the capital to make the next interest payments on their debts? The answer, for the time being, appears to be yes: Greece, after receiving massive funding infusions, has been
Bond markets in Europe and emerging markets face a host of challenges in the years ahead.