Central Bank Tools of Intervention: Reverse Repos versus QE

In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period from the end of September […]

“Tiering” to avoid tearing balance sheets: Understanding the ECB new policy

In a world of excessive liquidity, where open market operations by central banks are ineffective, unconventional and unheard-of monetary policies need sometimes to be applied. In this article we will briefly discuss of the overnight interbank lending market in Europe (and changes in how its respective index is calculated) and in particular discuss of “tiering”, […]

The FED and the Balance Sheet: Shrinking the Giant

Trump’s election and his plan of loose fiscal policy put upward pressure on US inflation. In order to cool down the economy on the verge of full employment, FED raised rates in December and March and has promised two other hikes in 2017. Hiking fed fund rates is not the only approach the FED can […]

US and Eurozone: expectations upside down

It is widely known that the USA and the EU are in different economic conditions: the American economy has risen from the crisis and the FED is tightening the policy, while Draghi, the president of the ECB, declared that they will keep the quantitative easing going. Unemployment in the US is near its natural rate, […]

Trumponomics: Profit with Inverse ETFs

This article will introduce an unconventional way to profit when interest rates rise using inverse ETFs. We will show the upsides and downsides of these tools, focusing on how they could be used in today’s American market. Inverse ETFs could be a useful tool to deal with the possible future bear shift in the bond […]

LIBOR on the Rise: The Tale of Two Laws

The past summer has been quite hot: we saw unexpected Brexit, Turkish failed coup, the presidential campaign in the US is on the peak, and EMs are bursting out of inflows. On the backdrop of all these events, one very interesting trend may have left out of the scope of attention: the USD LIBOR has […]

BSIC Monetary Policy 101: Fed Hiking Path

Fed hiking path explained […]

Abenomics: tracing back the arrows

The purpose of the article is to provide an explanation on the economic policies of the third largest economy in the world. In particular, explanation of Abenomics’ three arrows, their effects on Japanese economy and our view on the next steps that policy makers are likely to undertake. With this regard, we focus on the […]

MARKET RECAP 21/02/2015

US  Big news has struck the US economy this week and in particular the ones oil-related has had a strong effect on the market. The US economy has been once again the main driver of the fall in oil prices this week as the country’s stockpiles of crude last week increased by 7.7 million to […]

The UK Macro Fundamentals: The devil hides in the details?

The latest weeks have been full of news for the UK economy. Some of the news, like the dovish stance of the Bank of England, were on average expected by the financial markets, whereas others, such as the latest inflation figure of 1.2% for September, were not expected. Actually, the Bank of England expected the […]

MARKET RECAP 01/11/2014

US After turmoil in the recent weeks US equities are back to all-time highs. Very solid data on consumer confidence and a Q3 GDP growth rate print of 3.5%, above a lower forecast of 3%, propelled the S&P 500 to 2018.05. Not even the completion of tapering on Wednesday stopped US equities during the week; […]

MARKET RECAP 03/10/2014

US Last week’s losses were followed by some more, as the S&P 500 lost 0.75% to close at 1967.9 and the NASDAQ Composite and DJIA went down 0.81% and 0.6% respectively from their values at the end of last week. Stocks took a beating on Tuesday and Wednesday especially as the data on consumer confidence […]

MARKET RECAP 27/09/2014

US Equity markets in the US lost ground this week, ending short of the fresh highs touched in the previous one. Macroeconomic data came in mixed, as a solid manufacturing PMI and positive data on new home sales on Tuesday and Wednesday were confounded by disappointing durable goods orders and continuing jobless claims on Thursday; […]

BSIC Market Recap 20|09|2014

US US equities enjoyed significant gains in the week just past us after trading sideways for most of the summer. The S&P 500 was 1.25% above its closing value last Friday, closing now firmly above the 2,000 level at 2,010. The index clocked in its largest gains mid-week, on the back of soft inflation data […]

BSIC Market Recap 24|05|14

[edmc id=1778][/edmc] US Equities closed at record highs in the week just past us; the S&P 500 in particular closed above 1,900 for the first time, gaining 1.29 percentage points from the week’s open. Such good performance, which was also echoed by the Nasdaq Composite (which retraced some of its past losses to gain more […]

1 2