Category: Analysis

Economic slowdown! What if the Fed imposes negative rates?

After the huge financing operation put in place by the FED in 2008-2009, lending $7.5 Trillion to the banks at a 0.1% interest rate, we were introduced to the toxic assets purchasing program (Capital Purchase Program) by the Us Department of the Treasury, a $700 Billion of distressed assets buying program. Afterwards we had the...

How low can the European banking stocks go?

How low can the European banking stocks go?

It’s not the first time we see the European banking stocks in a free-fall. It was worse in 2008. The problem is, we haven’t seen the banking shares rallying since that time. Right now, you can buy some of the European banks shares like Deutsche Bank, Credit Suisse, Societe’ Generale at the cheapest price in...

What does a strong dollar mean for the world ?

What does a strong dollar mean for the world ?

In its attempt to fit, to the strong US Dollar, the world is changing quickly. The faster the dollar gets strong and the faster each economy must fit to the new world order. If there was anyone who didn’t took seriously the power of King Dollar, should think it again. Our-days the market interactions are...

The fixed income market can be hit by a perfect storm

The fixed income market can be hit by a perfect storm

The corporate bond markets, on both sides of the Atlantic, has been hit this week by a wave of declines. As a result, we saw high yield bond markets and also investment grade bond markets falling from the record levels reached weeks before. The US high yield bond index, one of the most important benchmark...