FMA Market Update – July 2016 Edition
July 31, 2016 | John J. Klobusicky CIO, CFA®, CAIA
In this month’s edition, we’re offering a brief update on the bond market and the state of the global economy. Negative interest rates, a market that appears to have detached from all the rules including smart money that was once in the bond market now giving us mixed information about valuations, changing investor behavior along the yield curve, and insecure relationships among asset classes are all contributing to roil the economic waters.
In previous letters, we described how bond prices move with interest rates. We have laid out a brief refresher of how this works to help better understand what is occurring in the market. The red squares on the chart below indicate countries with negative—yes, negative—interest rates. Click the link below to read more.