monetary policy

US equity markets are continuing to price in higher premiums for bank shares relative to the overall market. The increased steepness of the yield curve will mean higher net interest income, as banks borrow at historically low rates from…

In the wake of the selloff in stocks and bonds after the Fed laid out its timetable for tapering, markets are looking to see whether they have misread the Fed. Fed Presidents Bullard and Kocherlakota have spoken and both were pretty dovish.…

Paul Krugman penned a New York Times Op-Ed, "Et Tu, Bernanke?", referencing the famous Shakespeare quote "Et tu, Brute" which is generally used to signal betrayal from someone unexpected. Krugman meant to say that the Fed has betrayed the…

There are perhaps more myths about QE than almost any other monetary policy instrument. Here are five of the most pernicious QE myths.

The treasury curve has steepened materially over the past few weeks, driven by Bernanke's seemingly hawkish statements. One group of companies that will benefit from this adjustment is the banking sector.

By Win Thin and Ilan Solot from yesterday What has changed? In short, pretty much everything. The FOMC meeting and the market reaction has fed into a deeper re-pricing of assets globally. The selloff in the EM space has been…

By Marc Chandler  The dollar is the king of castle, extending yesterday's post-Fed rally across the board. Emerging market currencies have been particularly hard hit and we note that the Turkish lira is at new record lows.  Asset markets…

Last week I wrote about the asset-price fuelled boom fading. Back then the biggest worry for the market was Japan and Abenomics. However, in reality the biggest concern is emerging markets. I gave you some reasons why last week. Here are a…

The Federal Reserve's Open Market Committee met today. As expected, the Fed Funds rate stayed at zero percent. Most Fed watchers, however, wanted more clarity on the Fed's quantitative easing timetable, which the Fed laid out clearly. But…

Mortgage backed securities (MBS) have sold off sharply over the past month as fixed income markets face the new reality of rising rates. But unlike most other fixed income securities, MBS duration tends to increase with yield.