risk

It is now patently clear that US equity and corporate bond markets are overvalued. Much of the overvaluation has to do with low discount rates and the risk-on signal easy Fed policy has sent investors for over five years. Yet again, signs…

By Marc Chandler - This week, investors should brace for a re-escalation of tensions in Crimea and China - There are four sources of heightened tensions with the Crimean crisis - Weekend news from China played on fears that the yuan is…

I am concerned about what is happening in the emerging markets but not alarmed. Fed tapering was a proximate trigger but not a cause. All indications are that the crisis is hitting only the most exposed and vulnerable markets and that this…

Right now, everyone is talking about an emerging markets crisis due to the simultaneous turmoil in several emerging markets. I am not concerned about this being a full-blown crisis yet. At the same time, I do want to use this as a launchpad…

The argument that unemployment happens when wages fail to adjust sufficiently to changed market dynamics is a well-aired one. But explanations of "sticky wages" tend to focus on structural rigidities such as employment protection…

US corporate credit is outperforming other forms of credit assets such as commercial real estate. A good way to see that outperformance vs. global risk assets is in the components of the Credit Suisse Risk Appetite Index. For the first time…

I have spent some time this past weekend reading what investment manager Hugh Hendry has had to say about why he has turned bullish. And the clear takeaways are twofold. First, it is very difficult to ‘fight the Fed’ when it wants growth.…

Given the relatively low default rates in auto loans, banks' credit departments have loosened lending requirements.

The higher demand for leveraged loans is helping to gradually increase leverage of buyout transactions. But a more alarming trend is the sharp relaxation of lending terms - the so-called "cov-lite" (covenant-light) deals. Over 70% of recent…

At 2PM ET today, the Federal Reserve is releasing the latest FOMC statement. Market players do not expect the Fed to taper its large scale asset purchase program because recent economic data in the US have been weak. Given controversial…