Why Equity Markets Continue to Remain Unaffected by the FOMC
The US equity markets (SPY) haven’t seen any major impacts from the Fed’s policies in the recent past.
The London attack has added to the political uncertainty that is prevailing in the UK—and only days before its general elections scheduled for June 8.
The VanEck Vectors Investment-Grade Floating Rate ETF (FLTR) has an effective duration of 0.14 years. It protects you from rising interest rates.
Since fallen angel bonds were given investment-grade status earlier, they typically have higher credit quality than most other speculative-grade bonds.
FLTR isn’t impacted much by interest rate hikes. FLTR has an effective duration as low as 0.14 years because its coupons match interest rates.
VanEck Case Studies: U.S. Corporate Green Bonds Apple is not the only major U.S. corporation to issue a green bond. Below we list other U.S. corporate bond issues included in…
The euro-US dollar (FXE) continued to rise and claimed a new six-month peak above 1.1250 after the FOMC minutes didn’t revive the US dollar (UUP) on May 23.
US Treasuries (SCHO) rallied all through the previous week supported by heavy safe-haven inflows into US bonds.
US bond markets are trading on the expectation of an interest rate hike by the US Federal Reserve in June 2017. Last week, bond yields extended their slides.
Loretta J. Mester, president of the Federal Reserve Bank of Cleveland, said she doesn’t want the Fed to fall behind the curve.
Apple is not the only major U.S. corporation to issue a green bond.
European bonds (BWX) started showing signs of celebration late May 5 as opinion polls pointed toward an Emmanuel Macron win in the French presidential election.
Economic indicators that have been reported since the last FOMC meeting were mixed. We saw March employment data disappoint markets (MTUM).
In its May statement, the Fed seems to have gone the extra mile to explain the slowdown in the first quarter.
Demand for fixed income securities will likely be subdued because of excess supply this week, which would mean additional support for bond yields.
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
BUTCHER: What should investors be looking for in 2017? VAN ECK: A key question is whether Congress will fix the U.S.’s long-term debt problem. If it doesn’t, our entitlement systems…
BUTCHER: How do you expect the Trump administration to affect your outlook? VAN ECK: As an investor, you have to filter out a lot of the noise and just look…
JAN VAN ECK: The second shift was in interest rates. A year ago, Japan started moving toward negative rates. It was the height of central banks’ love affair with using…
The CBO expects the budget deficit to remain below 3% of GDP until 2019.