Financial Times (February 7)
“Risk assets started this year on a tear. Before the coronavirus outbreak unsettled investors, global equity prices had risen by more than 10 per cent in three months while credit spreads were near record lows.” Attributing this to “to the Fed’s actions is alluring,” but probably incorrect and “it could leave investors wrongfooted again when the central bank pares back its interventions later in this year.”
Bloomberg (August 22)
The European Central Bank’s quantitative easing program “has driven down European credit spreads.” In September, as the ECB scales down this operation, it’s “going to be a tough wrench seeing the biggest buyer in the room step away. Average spreads over benchmark government bonds may already be showing the strain.”
Tags: Benchmark, Biggest buyer, Credit spreads, ECB, Government bonds, QE, Strain
