Commentary

China Property Sector Remains Robust Despite Policy Headwind

Momentum in China’s property market remains strong so far in 2021, driven by healthy demand for housing.

Commentary

Treasury Issuance Could Aid Adoption of SOFR Benchmark

As regulators push to transition away from Libor, sales of Treasuries linked to the successor rate could boost the new benchmark’s credibility and expand nascent markets for related debt and derivatives.

Commentary

Realigning Inflation Expectations

As expected, the Federal Open Market Committee (FOMC) announced no changes to its administered rates following its April meeting, and Federal Reserve Chair Jerome Powell did not provide new information about the Fed’s bond-buying programs.

Commentary

Nuclear Decommissioning Trusts: Broadening the Fixed Income Opportunity Set

Nuclear decommissioning trusts (NDTs), the pools of money accumulated over decades used to dismantle nuclear power plants and safely dispose of radioactive materials, allocate about 40% of their assets to fixed income securities.

Commentary

Rethinking Cash Holdings to Avoid Near‑Zero Yields

Since the disruptions that roiled financial markets in March 2020, investors have turned more to cash and other short-term instruments typically associated with risk aversion and preservation of capital and liquidity.

Commentary

Bank of Canada: Walking a Tightrope

On April 21 the Governing Council of the Bank of Canada (BoC) will meet to discuss monetary policy.

Commentary

Global Chip Shortage: The Winners and Losers

Computer chips, or semiconductors, power everything from cars to consumer electronics, such as PCs, gaming consoles and smartphones.

Commentary

Dealing With an Inflation Head Fake

We forecast a strong global recovery in 2021 amid significant fiscal support, accommodative monetary policy, diminishing lockdowns, and accelerating vaccinations.

Commentary

Will Taxes Rise in the U.S.?

Democrats could begin working on a tax bill later this year, but resulting tax hikes may be weaker and less of a headwind to growth than some fear.

Commentary

U.S. Equity Values: The Three Dogs That Have Not Barked

Stock market bulls can find reassurance in the equity risk premium, which suggests stocks are valued fairly or slightly expensive.

Commentary

SLR Expiration: Treasury Markets Likely to Shoulder the Costs

The Federal Reserve on 19 March announced that the temporary changes to its supplemental leverage ratio, or SLR, will expire as scheduled on 31 March.

Commentary

Fed Policy: Patience Is a Virtue

Following its March meeting, the Federal Open Market Committee (FOMC) released a statement and summary of economic projections (SEP).

Commentary

Focusing on Inflation May Miss the Bigger Risk

As the latest COVID-19 relief bill winds through the U.S. Congress, some economists have been warning that too much stimulus could lead to the economy overheating

Commentary

Surge in Rates May Be Overstating the Case for Inflation

Longer-dated Treasury yields have climbed as markets consider whether economic growth and inflation expectations might accelerate more rapidly. We believe inflation pressures will remain in check and bond yields will be range-bound.

Commentary

Implications of China’s Credit Curtail

China’s economy should see a soft landing as stimulus is reduced, but the drag on global growth may place a burden on developed economies to keep stimulus taps open for longer.