Financials

The U.S. Treasury Department’s latest issue on January 29, the floating rate note (or FRN) will fulfill two investor needs: participating in anticipated future interest rates increases and protecting principal against default.

The group spoke about how these companies and India could benefit from investment flow into the country. Modi sought investment pledges from many of these CEOs, who were impressed with what India had to offer.

Historically, a flatter yield curve had an adverse impact on the financial institutions’ returns. It lowered their net interest margins. The Fed continues to stress an accommodative monetary policy. The policy and strong overseas demand have kept yields low at the long end of the curve. As a result, the difference between 30-year and five-year Treasury yields fell to 154 basis points on September 5, 2014.

Gundlach thinks that investors should short low volatility equity funds. People invest in them thinking that they’re safe, but they aren’t.

On Brexit, import restrictions and tariff quotas currently applicable to importers in the UK and foreign businesses that export to the UK are set to change.