interest rates
If the world feels a little crazy, it's because you are paying attention, writes Sloane Ortel. But stick around. We'll try to turn it into fun.
With rising rates and a flattening yield curve, can there be opportunity in fixed-income markets? Sloane Ortel examines what's happened and what to do next.
Jason Voss, CFA, provides his choices for Weekend Reads for Investors. This edition features surprising facts about coffee consumption, global choke points in the food supply, graphics showing how cryptocurrencies are likely to affect finance, and more.
Back in the 1980s, “monetary policy was a great way to stimulate the economy,” Jack Ablin, CFA, said. Not anymore.
Edward Altman says the benign credit cycle is in “extra innings,” but the metaphorical relief pitchers — central bankers — are running out of gas. Though most indicators point towards the end of the benign cycle, Altman cannot predict when the stress cycle will begin.
Interest rates are nearing a lower bound, David Schawel, CFA, tells Will Ortel during a recent Take 15 interview. “Most likely we’re not going to be in a 30-year bull market for interest rates falling again,” he said. So what does this mean for fixed-income investors?
The search for alternatives, things that really matter in the world, and a brief foray into the active vs. passive management debate are the topics included in this week's edition of Weekend Reads.
In the current low-rate environment, there is reason to wonder about the viability of banks, insurance companies, and indeed any institution that generally depends on the spread between long- and short-dated liabilities for its profits, says David Schawel, CFA.
Do higher interest rates actually lead to higher returns on savings? Research shows a 1% increase in interest rates by the US Federal Reserve equals a 0.34% increase in the rates paid by banks on savings deposits. Why do savers fail to capture the benefits of higher interest rates?
In the latest Weekend Reads compilation, Shreenivas Kunte, CFA, curates readings on the Berkshire Hathaway annual meeting, interest rates, the economic outlook in China and India, and more.