Research & News
Daily Comment (September 21, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Equity markets are generally higher following the BOJ release. The BOJ did not do anything too radical—no helicopter money or foreign bond purchases. But, there were some changes. The focus of policy will shift to the yield curve as the 10-year JGB will be pegged at… Read More »
Daily Comment (September 20, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] Given the large amount of news from the weekend, there were a couple of items that we wanted to mention but, for brevity, waited until today. First, the Bank of International Settlements released its table of early warning indicators for banking system stress. The key data… Read More »
Weekly Geopolitical Report – Reflections on Terrorism (September 19, 2016)
by Bill O’Grady Fifteen years ago, al Qaeda terrorists used commercial airplanes to attack the World Trade Center in New York and the Pentagon in Washington. Another aircraft crashed in rural Pennsylvania; it was believed to be en route for another attack but passengers on the plane prevented the terrorists from achieving their goal. The events… Read More »
Daily Comment (September 19, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] It was a very busy weekend for news. Let’s take a look: Terrorist attacks: There were a couple of bomb explosions over the weekend along with a number of unexploded devices found in the Greater New York area. The story is evolving but security officials have… Read More »
Asset Allocation Weekly (September 16, 2016)
by Asset Allocation Committee Since the beginning of September, 10-year T-note yields have risen from a low of 1.52% to a high of 1.75%. This backup in yields is as issue we are monitoring carefully because we have favored long-duration assets for some time. We analyze long-dated interest rates by starting with a fair value assessment… Read More »
Daily Comment (September 16, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] There isn’t a ton of news in the financial markets this morning. The most discussed is the DOJ decision to levy a $14 bn fine against Deutsche Bank AG (DB, $14.76). In European trading, shares were off over 8% overnight. The bank was anticipating a fine… Read More »
Daily Comment (September 15, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] The big overnight news was the BOE’s decision to hold rates and bond-buying steady, which was expected. The committee vote was 9-0 in favor of the current policy. The bank did indicate, however, that it was still on course to lower rates later this year and… Read More »
Daily Comment (September 14, 2016)
by Bill O’Grady and Kaisa Stucke [Posted: 9:30 AM EDT] In the next AAW (published Friday), we will discuss the very important impact of foreign issues on U.S. Treasury yields. This is one reason why the financial markets have become focused on the BOJ’s review of its monetary policy. There are rumors swirling as to what… Read More »