How are interest rates and future bond returns related? Why can the yield be higher than current interest rates? Our blog looks at the correlations in fixed-income investments.
Article on tag "interest"
Yield opportunity in the bond market: Q4 2021
Most economic indicators for August and September point to a slowdown in economic growth. However, growth rates still remain relatively strong
Falling economic momentum is not bad news
One of the most important economic indicators, the global purchasing managers index for the manufacturing sector, fell in June compared to the previous month. Is that bad news for risky asset classes like stocks? Our chief economist Gerhard Winzer analyzes the most important scenarios.
What is it about dividends on stocks?
When share prices rise on the stock markets, investors are happy. How do dividend stocks work and what’s in it? In our blog post we give an overview of the main features of dividends.
Latin America overview: Venezuela a classic debt rescheduling candidate
Oil production, state crisis, costly restructuring: Venezuela is in crisis. What’s next? Our analysts Christian Gaier & Felix Dornaus provide the answers.
Interest rate lift-off – Stay cool
Following last week’s surprisingly strong employment report, the odds that the US Federal Bank will start raising its policy rate at the next FOMC-meeting in December jumped to almost 70%. Of course, 70% is still short of 100%, but most observers believe that something terrible must happen in the next four weeks to make the […]
Is the Eurozone facing a turnaround in interest rates?
Eurozone government bonds have ensured very good performance returns in the past years. The asset class has benefited from the zero interest rate policy and the very expansive monetary policy of the European Central Bank. In recent weeks the prices of bonds from Eurozone countries have gone through a correction, above all German government bonds. […]
Corporate bonds with short maturities
Bond investors are faced with a difficult environment. Do corporate bonds offer the chance of a halfway decent yield? Stampfl: The statement that bond investors are faced with a difficult environment is actually an erroneous one. A balanced portfolio consisting of bonds from the peripheral countries and the core countries across all sectors would have […]
Strong Dollar and Turkey
In Turkey, the impact of the currency fluctuations are being discussed and even an ordinary Turk on the street knows what it means for the currency to depreciate. For example, during a cab ride, you may have a very deep economic discussion with the taxi driver about the dollar and the Turkish lira. This is […]
The effects of the ECB policy
Since the cutting of key-lending rates to almost zero in the Eurozone did not suffice to keep the inflation expectations at their long-term target of slightly below 2%, the ECB Council decided in January to expand the central bank money supply until the accomplishment of the target was foreseeable. The possible effect on the financial […]