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14 Apr 2015
ECB’s QE transforming the junk bond markets with investors ignoring risk – RBS
FXStreet (Barcelona) - William O'Donnell, Head of US Treasury Strategy at RBS shares the key surprising developments in the bond markets.
Key Quotes
“If you live long enough you see things you never imagine... For example, the WSJ says that some EU banks have begun to pay interest to those who have borrowed money from them”
“How did that happen? Well, the WSJ says today that US corporate pension funds are piling into bonds (first time in over 10yrs they hold more bonds than stocks) and the FT writes that the ECB's QE is transforming the junk bond market with investors ignoring risk.... FT article adds that EU investors are also piling into inflation linked bonds”
“The WSJ describes how EU debt yields have gone down the Rabbit Hole and this fund manager is the latest to warn that market liquidity is rapidly disappearing”
“The FT adds that futures commission merchants or FCMs are now a dying breed thanks to new regulations and low rates”
“Fox Business article suggests that Millennials are pushing up rents (+14% since 2010) while WSJ piece says the residential real estate market could be the next frontier for speed based investing”
Key Quotes
“If you live long enough you see things you never imagine... For example, the WSJ says that some EU banks have begun to pay interest to those who have borrowed money from them”
“How did that happen? Well, the WSJ says today that US corporate pension funds are piling into bonds (first time in over 10yrs they hold more bonds than stocks) and the FT writes that the ECB's QE is transforming the junk bond market with investors ignoring risk.... FT article adds that EU investors are also piling into inflation linked bonds”
“The WSJ describes how EU debt yields have gone down the Rabbit Hole and this fund manager is the latest to warn that market liquidity is rapidly disappearing”
“The FT adds that futures commission merchants or FCMs are now a dying breed thanks to new regulations and low rates”
“Fox Business article suggests that Millennials are pushing up rents (+14% since 2010) while WSJ piece says the residential real estate market could be the next frontier for speed based investing”