Category: Finance

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...

After the FED Taper Tantrum we have the ECB Transparency Tantrum

After the FED Taper Tantrum we have the ECB Transparency Tantrum

Uncertainty about the future is something common in the financial markets, but until last week, we haven’t seen such a confusion and such a hard reaction of the international markets to Mario Draghi’s speech. The markets were highly disappointed from the last ECB decision to not further expand the QE. The expectations were for at...

Italy’s bad bank won’t have the expected impact on Italy’s economy

Italy’s bad bank won’t have the expected impact on Italy’s economy

The 200 BN Euros of non-performing loans, in all the Italian banking system, is the number that decisively has pushed the Italian government to intervene in the banking system. After years of rising non-performing loans, after the vanish of the hope, to see a change of course in the bad loans, after that many European...

Lessons from Bill Gross

Lessons from Bill Gross

We often have heard M. Gross explaining his opinions against the Fed’s monetary policy, but this time he gave us some good lessons. In his last letter to investors, he argued why the Fed was wrongdoing through its Twist operations. Intervening in the market with these Twist operations, the Fed has not further expand the...

Petrodollars outflows from the financial markets. Will it last?

Petrodollars outflow from the financial markets. Will it last?

The time of the large inflows of petrodollars in the financial markets seems to be over. Now-days analysts talk much more about Petrodollars’ exodus. The blest countries with high budget surpluses because of the high oil prices now are in the hook. In their Sovereign funds, have been poured for years billions of dollars. The...

Why the FED didn’t raised interest rates ?

Why the FED didn’t raised interest rates ?

The puzzle of why the Fed didn’t raised rates, this Thursday, is still going on, and investors are still debating about it. According to what the Governor said, this time for the Federal Committee the decision wasn’t as simple and it wasn’t unanimous. Many analysts agree that the Chinese slowdown was one of the main...