Tag Archives: QE

Mar 25, 2020

Federal Reserve Becomes Buyer of Last Resort

In a previous blog, we discussed the U.S. Federal Reserve’s initial responses to the current market volatility and resultant dislocations. In short, dropping rates to 0% and adding over USD 1 trillion to the funding markets did little to abate the severity of the situation. In an effort to prevent a liquidity crisis from turning…

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Feb 2, 2018

Where Are the PIGS Now, Minus the G?

Over the past five years, the more worrisome government-issued debt in Europe has made significant progress in managing the normal mechanism of higher-perceived risk equaling higher yields. The Wall Street Journal focused on Portugal’s debt in their article, “Decade of Easy Cash Turns Bond Market Upside Down”. Quantitative easing (QE) by the European Central Bank…

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Jun 2, 2016

Rieger Report: Bond Market Malformation, Trouble Ahead?

There is no doubt about it the bond markets are malformed due to quantitative easing (QE). The possibility of a Fed change of short term rates in June or July is on the minds of many. Are the investment grade municipal and corporate bond markets primed for a near term correction as a result? Only time…

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May 18, 2015

European Government Bond Markets Continue Sell-Off With the Exception of Sweden & Norway

Most European government bond markets continued their downward spiral during the week of May11th, 2015, led by a sell-off in US Treasury markets.  New supply from the US Treasury pushed yields up (bond prices down) and aided a global downward trend.  Europe is showing its sensitivity to uncertainty over when the fed will start to…

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Mar 7, 2015

Higher Interest Rates: Why, When, How

Three issues surround the debate over the Fed and raising interest rates: why should interest rates be increased? When should they be raised and how can the Fed do it.  All three need to be resolved. Why The traditional description of Fed policy is “removing the punchbowl when the party gets good.” The Fed’s dual…

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Mar 3, 2015

European Equities Ripping Into 2015: Is It Just The ECB?

If there is one thing that the large stimulus programs enacted by central banks in the U.S., U.K. and Japan over the past few years have taught us, it is that they provide a whopping boost to equity markets in the short term.  Is that the only reason Europe is doing so well? The European…

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Aug 14, 2014

Double Dose of the Fed

Next week will be a double dose of Fed speculation and debate. First, on Wednesday at 2 PM the Fed will release the minutes from the last FOMC meeting on July 29th-30th.  Then on Thursday evening, Friday and Saturday the Kansas City Fed will hold its annual economic policy symposium in Jackson Hole Wyoming.   The…

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