Why high-yield corporate bonds are still attractive and the smaller European market deserves attention

Why high-yield corporate bonds are still attractive and the smaller European market deserves attention

Nearly all conversations with investors these days eventually lead to the challenge of what to do about bonds, as markets are surely heading for an inflection point. Buying riskier assets like corporate bonds has been a popular and profitable trade as financial repression encouraged investors to…

US Dollar Losses Extended

US Dollar Losses Extended

The US dollar remains on the defensive after retreating yesterday. Its losses against the most of the major and emerging market currencies are being extended today. The combination of softer US inflation coupled with a less dovish than expected ECB, a Bank of England lifting growth forecasts,…

NZD Rise to Gain if GDP Sinks RBNZ Rate Cut Bets, Trade War a Risk

NZD Rise to Gain if GDP Sinks RBNZ Rate Cut Bets, Trade War a Risk

Heading into the end of last week, the pro-risk New Zealand Dollar managed to appreciate against its US counterpart alongside a recovery in global benchmark indexes. The S&P 500, Nikkei 225 and MSCI Emerging Markets ETF rose as reports that the US would propose new rounds of talks with China crossed…

How Australia cost New Zealand $2 billion

How Australia cost New Zealand $2 billion

New Zealand might have avoided bailing out failed finance company investors to the tune of $2 billion if Australian Prime Minister Kevin Rudd had held his nerve after the Lehman collapse, says former Finance Minister Sir Michael Cullen.

For Cullen, the defining moment of the financial crisis was …

Key US data previews: eyes on retail sales and IP- Nomura

Key US data previews: eyes on retail sales and IP- Nomura

Analysts at Nomura offered a preview of the last key data for the US economy for this week.

Key Quotes:

“Import prices: Despite ongoing trade tensions, import price inflation will likely remain steady in the near term, and we expect steady readings for August import prices. While the US dollar…

The ECB’s taper autopilot is still on

The ECB’s taper autopilot is still on

When does a central banker know that he (or she) has done an immaculate job? When QE is brought to an end and financial markets could hardly care less. According to this definition, the ECB should be extremely satisfied with the outcome of today’s meeting. The ECB decided to reduce the monthly net…

U.S. imposes North Korea-related sanctions on Russian, Chinese tech firms

U.S. imposes North Korea-related sanctions on Russian, Chinese tech firms

The United States on Thursday imposed sanctions on a China-based tech firm, its North Korean CEO and a Russian subsidiary, accusing them of moving illicit funding to North Korea in violation of U.S. sanctions. The new sanctions target China-based Yanbian Silverstar Network Technology Co, its North…

Turkey central bank hikes rates sharply, boosts lira

Turkey central bank hikes rates sharply, boosts lira

Turkey’s central bank raised its benchmark rate by 625 basis points on Thursday in a move that boosted the lira and may ease investor concern about President Tayyip Erdogan’s influence on monetary policy. The bank raised the one-week repo rate to 24 percent, meaning it has now increased interest…

Fed’s Inflation Focus Needs a Tuneup

Fed’s Inflation Focus Needs a Tuneup

What now? Continued Federal Reserve interest-rate increases for as far as the eye can see? Those are the primary questions with the last inflation target standing essentially hitting the central bank’s 2 percent bullseye.

The core personal-consumption-expenditures price index (PCE), a broad meas…