Carmin Di Fiore’s Post

interesting event with the bond vigilantes .. we step into a phase of lower interest rates, which should motivate more issuances, but debts are so far up that investors are wary of default risk. Eventually, it could pan out with bond issuers not being able to take full advantage of lower rates; maybe some undersubscription risk as well

📊 Thanks again Trustnet for quoting Quintet Private Bank’s take on the first back-to-back ECB rate cut in over a dozen years. We expect further reductions, likely at each and every policy meeting until mid-2025. We’re tactically overweight short-dated government bonds, as they should benefit from this trend. Have a look here: https://lnkd.in/ec9fkqCE #economy #inflation #centralbanks #foreignexchange #markets #investing

Bond markets punish imprudent politicians as debt spiral looms: The bond market bandits are back with a vengeance in 2025. Despite central banks repeatedly cutting short-term policy rates, financial markets have forced a huge increase in the long-term cost of capital around the world. This awkward juxtaposition between the conflicting moves in short- and long-term rates is being driven by investor concerns around profligate political spending, tight labour markets, brisk wage growth, sticky inflation, poor productivity, and risks relating to Donald Trump’s policy platform (and the spectre of a tariff-induced trade war, in particular). Read more below... https://lnkd.in/gr78-rSu

When central planners misallocate capital it results in scarce resources. When a government steps in to save the day they decided the winners and losers in a society. When a government assumes the risks in a society their CURRENCY becomes the risk. 34 trillion in debt and 1 trillion in new debt every 90-100 days. Now seems the perfect time for the government to want to fund NPR. Regardless of political position would you want your government to fund this type of platform if it were opposite your beliefs? https://lnkd.in/eXNDGCtU Let's not get too caught up in the side show....back to the debt. Historically speaking, currency wars tend to lead to trade wars, which are followed by cold wars. Cold wars turn into real wars. "Regrets are illuminations made to late"- Joseph Campbell

The consequences or the impact of the policy rate hike: ✅ Curb the inflation with tight contractionary monetary policy ✅ Cost of borrowing increase ✅ Reduce the money supply in the market ✅ Interest rate increase ✅ Reduce investment ✅ Banks will enjoy profit as interest rates are high ✅ Banks need to make a solid liquidity base. Raising the interest rate is one of the most important components to curb inflation that is globally practiced. #BB #PolicyRate #MonetaryPolicy #Economy

This November, our fixed-income investment teams share their insights on: 🌟 Why US high yield is outperforming Europe 📈 Why rate volatility is driving investment-grade credit ❔ How fiscal concerns and uncertainty dominated at the IMF annual meeting 📆 What the future might hold for gilts 📉 How cash managers can navigate declining rates Subscribe to “Bond Voyage” 👉 https://bit.ly/4en0iKx #FixedIncome #Credit #Bonds #EmergingMarkets

This November, our fixed-income investment teams share their insights on: 🌟 Why US high yield is outperforming Europe 📈 Why rate volatility is driving investment-grade credit ❔ How fiscal concerns and uncertainty dominated at the IMF annual meeting 📆 What the future might hold for gilts 📉 How cash managers can navigate declining rates Subscribe to “Bond Voyage” 👉 https://bit.ly/49lWFUe #FixedIncome #Credit #Bonds #EmergingMarkets

The discussions around interest rate cuts have been going around some time after feds cut it. But what happens when this trick doesn’t work? I have written about this in the article below. Do check it out. #finance #interestRates #economy #money

The market is buzzing with change! Sino-US economic tensions are heightening concerns, oil prices have sharply dropped, and the dollar is making waves. Swipe left to dive into the latest on #EBCWeekly⬇️ Follow us for more weekly financial news! Where Your Goals Begin EBC Financial Group Website: https://www.ebc.com Email: mailto:[email protected] #EBC #EBCFinancialGroup #EBCforTraders #Finance #FXTrading #WeeklyNews

Banks are cautious in lending due to the contractionary monetary policy adopted to control inflation. On the other hand, investors are hesitant to expand businesses because of political uncertainty Link in Comments #investment #EconomicRecovery #EconomicGrowth #BusinessGrowth #TBSNews