Life After Zero Interest Rates

Last Week: Interest rates were mixed, and global equities rose sharply on the week. Strains in fixed income markets have begun to ease thanks to large-scale – in some cases unlimited – commitments on the part of central banks to add liquidity to markets and to purchase bonds in order to lower market rates. Credit […]

Negative Interest Rates for Dummies

From an emergency 100 basis-point Fed funds target rate cut, to restarting quantitative easing, to enacting an alphabet soup of targeted liquidity facilities, the Federal Reserve is employing everything at its disposal to ensure the financial system remains sound. While keeping credit flowing and encouraging consumers to spend are the Fed’s top priorities, there’s one […]

QE Forever

Last Week: Interest rates rose, and equities were little net changed on the week, though volatility remained extraordinarily high. The yield on the US 10-year note rose all the way to a 1.19% high at mid-week, but wrapped at 0.88% on Friday. 1-month LIBOR rose steadily throughout the week, peaking at 0.93% at week’s end […]

Rate Cuts Can’t Heal Sick People

Last Week: Interest rates edged higher as global equities traded dramatically lower on the week, ending the bull market in the S&P 500 Index just one day after it turned 11 years old. On Thursday, the S&P 500 suffered its largest one-day percentage drop since 1987 and Europe suffered its largest single-day drop on record. […]

Take Me To Zero

Last Week: Interest rates plummeted, and equities traded lower on the week as markets factored in the growing odds of recession due to the ripple effects of the spreading coronavirus. The yield on the US 10-year Treasury note crashed to an all-time low below 0.50% before bouncing modestly. 1-month LIBOR followed suit, nosediving to .86% […]