Inside the Fed’s Balance Sheet (The Biggest in the World)
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
VanEck BUTCHER: What should investors be looking for in 2017? VAN ECK: A key question is whether Congress will fix the U.S.’s long-term debt problem. If it doesn’t, our entitlement…
VanEck BUTCHER: How do you expect the Trump administration to affect your outlook? VAN ECK: As an investor, you have to filter out a lot of the noise and just…
VanEck JAN VAN ECK: The second shift was in interest rates. A year ago, Japan started moving toward negative rates. It was the height of central banks’ love affair with…
The CBO expects the budget deficit to remain below 3% of GDP until 2019.
Donald Trump’s corporate tax plans have the potential to infuse immense liquidity in the economy.
In this part of the series, we’ll discuss why negative interest rates might not be an ideal scenario for the US.
Higher inflation erodes the value of future coupon payments. Inflation has more of a negative effect on bonds with later maturities.
High-yield bonds gained popularity due to higher yields compared to Treasury bonds, whose yields were being pushed down by the Fed’s interest rate policy.
The demand for US investment-grade corporate bonds was driven by higher yields generated by bonds in the midst of low interest rates.
IGEM gives you good exposure to investment-grade emerging market bonds. They’re less risky and add diversification benefits to your portfolio.
Emerging market economies have seen improved GDP growth in 2016, while developed markets are struggling to grow.
Although the markets have surged to record highs in the last two months, there are early warning signs you should watch. The recent decline came on Friday, September 9.
The relationship between the CBOE Volatility Index (or VIX) and the spread between high-yield bonds over ten-year Treasuries is highly correlated.
Looking closely at mutual fund and ETF flow data can provide some insight into how investors have approached the asset class this year.
The correlation between oil and high-yield bond indexes is very high. Where oil goes, high-yield bonds follow.
The three-month Volatility Index (or VIX), which measures the implied volatility of options on the S&P 500 stock market index, is approaching record lows.
The surge of inflows into junk bonds indicates that the fear of recession in the US economy has faded, which has boosted investor confidence.
Led by improvements in production-related indicators, the Chicago Fed National Activity Index (or CFNAI) rose to +0.27 in July from +0.05 in June.
Yields on high-yield debt (HYG) (JNK) and spreads between high-yield debt and Treasuries both fell over the last year.