Stark: ECB interference causes ‘unintended consequences’
The European central banks’ market interventions, such as their asset purchase programme, has created the “unintended consequence” of the institutions becoming a dominant decision maker in investments, and has led to risk not being priced properly, according to ex-ECB chief economist Jürgen Stark.
Soft inflation data throw Fed tightening into doubt
Friday’s US inflation report suggests the recent streak of soft CPI inflation may be more persistent than the Fed initially believed, decreasing the likelihood of further rate rises.
ANALYSIS: Hawkish Yellen should continue on hiking path
Federal Reserve chair Janet Yellen offered the market a hawkish message on Tuesday as she indicated the US economy might be poised for a series of gradual interest rate increases, starting as early as next month.
Is duration risk an issue for high-yield investors?
As inflation is rising and interest rates seem to have bottomed, investors are reducing the duration of their bond portfolios. But is duration risk really a factor in all fixed income asset classes?
Fed leaves investors waiting for Trump and Clinton
The Federal Reserve’s decision announced last night to keep rates on hold has left investors waiting to see the outcome and market impact of the Presidential election before a rate rise is put back on the agenda.
ECB goes into holding pattern
The European Central Bank decided to stick rather than twist today as it announced the deposit rate has been held at -0.4%, the refinancing rate held at zero, and the details of its €80bn per month quantitative easing programme are unchanged.
Rock-bottom interest rates are biggest threat to investors, says fund manager
Record-low interest rates are the number-one risk to investors, even if they stay at their current levels, said Greg Woodard, who is part of the management team of the GAM Star Global Quality Fund.