Sometimes it is easier to have a sense of what will not happen, rather than a view of what will happen. No Negative Rates in the US: Nearly every Federal Reserve official has argued against the deployment of negative interest rates in the US. It is also not completely clear that the same Congressional authorization …
Overview: Interest rates are lurching lower. The US 10-year yield is at new two-year lows, but the driver is European bonds where peripheral yields are 6-7 bp lower, though Italy’s benchmark is off 12 bp, while core yields are down 2-3 bp to new record lows. The German benchmark is almost minus 40 bp, while …
It has been discussed for several weeks, and today the European Commission unveiled a proposal for a new asset-backed security. The backing would be sovereign bonds weighted by the size of the economy. This may sound like mutualization of risk, but it is no such thing. These new securities are not Eurobonds. The EC is calling …