Monthly Archives: August 2014

August 26

Is ECB QE On The Way?

Taking Draghi’s comments from the August 7th press conference and comparing them to what was said during his August 22nd Jackson Hole address shows that the ECB President is concerned about the medium term inflation picture. The language about medium term expectations being firmly anchored below or close to 2% has been a part of […]

August 22

Yield Seeking Zombies Will Be Tested At Jackson Hole

The theme of the last 6 months has been low volatility and carry trade investing. Global investors have become ‘yield seeking zombies’, lurching from one market to another seeking out higher returns relative to  their respective domestic markets. The trades of choice have been high yield US bonds, leveraged loans and emerging market corporate and […]

August 15

Bad News Rally Faces Big Risks

Risky assets traded down to recent lows early last Friday as Barack Obama approved airstrikes to push back the spread of religious militant groups in Iraq. Since those lows, stocks, high yielding currencies and junk bonds have roared back based on a combination of factors. Fading Geopolitical Risks: There were constructive headlines out of Russia […]

August 11

The Erdogan Way: High Inflation? Cut Rates

Recep Tayyip Erdogan has been elected to a ten year term as Turkey’s first President. The office has existed in prior forms as a ceremonial title, but now Mr.Erdogan will be called President after already serving since 2003 as prime minister. Critics see his AK party as likely to consolidate power with a plan to […]