The buildup of debt during the post-crisis years of ultra-low rates has accelerated: the ris.
Libor Transition: Progress, but Challenges Remain A year after the decision to phase out Libor, there has been good progress on alternative reference.
Population aging will have a significant impact on potential growth over the next several decades-in emerging as well as mature economies-suggesting t.
Experts disagree: will population ageing push real interest rates lower or higher?' The answer will depend on changes in savings and investment behavi.
The approach of global quantitative tightening could mean a sea change in borrowing conditions for high-yield issuers An unprecedented amount of the o.
Against the backdrop of a persistent hunt for yield, global leveraged loan issuance hit a record high of over $1.7 trillion in 2017-50% higher than it.
" Potential phaseout of LIBOR raises key questions-what happens to LIBOR and legacy financial contracts that reference LIBOR after 2021, and what are.
Persistent buoyance in global markets has led to growing concern about potential risks to financial stability.' While credit gaps show few signs of ex.
US non-financial corporate debt is at a record high of $13.7 trillion-problematic despite record cash levels For the 3000 US firms in our dataset, net.
In contrast to the 2013 taper tantrum, major central banks are now engaging in synchronized jawboning' At the same time, global savings gluts are shri.
" While some countries have seen deleveraging in recent years, many have seen a rapid increase in household sector debt " Most EM regions still have.
China's total debt (ex-financials) now tops 265% of GDP, marking a sharp rise from 140% in 2008. Heavily indebted non-financial corporates in China ar.
The sharp disconnect between elevated political/policy uncertainty and sanguine financial markets may reflect investors' inability to adequately price.
While details will take time to sort out, the Administration's plans will likely not involve a big increase in direct federal spending on infr.
The reflation trade has been driven in large part by expectations of a revival in corporate capital spending However, recent corporate bond issuance h.
How much more steam in the reflation trade?' " Cross-asset : While February has seen renewed appetite for the reflation trade, January's more sober.
With US-related political risk on the fore, concerns over external financing needs, declining foreign exchange reserves and' the slow pace of structur.
Global corporate earnings are now expected to rebound sharply this year-but policy risk is high Continued expansion of P/E multiples is hard to justif.
The road ahead will be fraught with political uncertainty, prompting suggestions that 2017 could usher in a "geopolitical recession"-with signifi.
Cross-asset :' The unexpected election win for Donald Trump has triggered a bond market selloff and sharp USD rally, with ripple effects around globa.
The stunning victory of Donald Trump in the U.S. Presidential election-on the heels of the Brexit vote in June-has highlighted the widespread sur.
Cross-asset : Anticipation of a U.S. rate hike in December and fears of a "hard Brexit" sparked a degree of risk aversion in October; the British poun.
Recovery, inflation still subdued: After 8 years of QE and low/negative policy rates, recovery remains tepid, with inflation performance and expe.
Tuesday, September 6, 2016 Negative interest rates-reflecting a range of factors including pol.
Cross-asset : While investors continue to expect U.S. monetary policy tightening in 2016, this year's big themes-low rates and low volatility-have bee.
Cross-asset : Following the post-Brexit drop in core sovereign bond yields, demand for high yield and emerging market bonds has been strong. Emerging.
Global equity markets have now fully recovered from Brexit-related losses, U.S. stocks have touched record highs in recent days, and emerging mar.
Over the past two years, mature market banks have continued to cut back on cross-border bank lending to emerging markets (as highlighted in BIS statis.
The recent rally in international financial markets has allowed global equities to broadly recoup the losses suffered in the first two months of 2016.
Cross-asset : With futures markets now pricing in over a 55% chance of a U.S. rate hike by July and rising political uncertainty in many countries, em.
Video of IIF - Sonja Gibbs - May Capital Markets Monitor Report Summary As the credit cycle ages after a period when non-financial corporations world.
Cross-asset :' Emerging markets outperformed mature markets during April, supported by higher oil and commodities prices. Many EM currencies added fur.
After falling sharply around the turn of the year and reaching bear market territory in mid-February, global equity markets have staged a strong rebou.
Cross-asset : Emerging markets have outperformed mature markets in Q1 2016, helped by dovish central banks and firmer oil prices.' A weaker tone to t.
As the financial system has incorporated recent regulatory changes, against the backdrop of deepening monetary policy divergence between the Fed and o.
Cross-asset :' The surge in risk aversion through mid-February drove safe-haven flows. ' Global bank shares fell almost 20% through mid-February, with.
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Scarcer central bank liquidity: While the slowdown in China's growth and falling oil prices have contributed to the sharp selloff in world equity.
A very bearish start to the year for equity markets around the world, as China worries and slumping commodity prices pose increasing risks for global.
2016 has started with a "big bang." The conflict in the Middle East has ratcheted up with Saudi Arabia's execution of a Shiite cleric, which prompted.
Following the Fed's decision to commence liftoff, we offer a brief update to our November EM Debt Monitor , using new BIS data and' focusing on the ri.
Cross-asset:' Market performance in recent weeks reflects continued adjustment to the prospect of a December Fed liftoff, notably in bonds and currenc.
With China's Fifth Plenum in focus this week, a key topic is promoting the international use of the renminbi. Internationalization has surged in recen.
Cross-asset: Amid growing expectations that U.S. rates will be on hold well into 2016, risk assets have headed nervously higher. But all eyes remain o.
Cross-asset: Amid severe pressure on EM equities and currencies, Japanese and Euro Area equities have been among the few winners year-to-date. With th.
Cross-asset: Lower market volatility has facilitated some recovery in risk assets. However, correlations across EM currencies and bonds remain elevate.
The European Commission's proposed Capital Markets Union (CMU) is an ambitious and broadly welcome initiative. Building the role of financial markets.
Fixed-income: While high-yield and EM corporate bonds have outperformed year to date, higher bond market volatility, lack of market liquidity and heig.
A striking phenomenon in recent years has been the speed of growth in EM corporate bond markets. Since 2008, total corporate bonds outstanding have al.
Secondary bond market liquidity in emerging markets has been under periodic scrutiny since the onset of the 2008 crisis. Turnover ratios for hard curr.
Liquidity-fueled Chinese, Euro Area and Japanese equities have been this year's star performers, while high-grade bonds have underwhelmed; higher oil.
Small and medium-sized enterprises (SMEs) are vital to creating jobs and spurring economic growth, yet many lack access to finance. The IFC estimated.
With signals from the Fed on balance dovish, and weak U.S. labor market data, markets have reassessed positions in recent weeks. Some revival in risk.
This first edition of the CMM Chartbook is part of the new publication format for the IIF Capital Markets Monitor, and follows last week's Key Issues.
The fast-growing area of asset management labeled "socially responsible investing" (SRI) broadly refers to incorporating environmental, social, ethica.
The first Eurogroup meeting with Greece's FM Varoufakis, on February 11, ended in the early morning-as usual-but without a joint statement as " mini.
The ECB announcement of a comprehensive QE program has brought to the fore the challenges posed by the ECB and BoJ easing moves. Other countries will.
In the context of deflation in the Euro Area and a favorable opinion rendered by the Advocate General' of the European Court of Justice, it is likely.
The collapse in oil prices and heightened political uncertainty will continue to reverberate throughout the global economy. These forces are set to re.
Since a high level of leverage was thought to have contributed to the 2008 financial crisis, deleveraging has been seen as a desirable process to redu.
Central Bank Balance Sheets and Asset Prices The divergence in G-3 monetary policies took more definite shape in October. The Fed ended QE3 with a fin.
The divergence in economic performance and monetary policy between the U.S./UK and the Euro Area/Japan will be accentuated by actual policy moves in t.
Pricing for Deflation? As the market frame of reference continues to develop, from the Fed "taper tantrum" in May 2013 to Jackson Hole in August 2014,.
Monetary Policy Uncertainty and Low Volatility A striking feature of the current global economic recovery, particularly since mid-2012, has been the s.