What I'm Reading Cash Trap: The rapid appreciation of the dollar this year helps boost the exports of weaker countries while alleviating inflationary pressures in the US by lowering the cost of imports. However, it also translates into higher import prices, more costly external debt servicing and greater risk of...
October 19th – Bluebird
What I'm Reading Bluebird Conditions: With low interest rates, strong capital flows and a favorable market outlook, conditions are more ripe for a lending boom than they have been in years. Question is whether or not the lending discipline that has defined the market since the end of the Great...
March 1st – Fuel on the Fire
What I'm Reading Fuel on the Fire: With long rates rising, investors in the mortgage bond market had to sell treasury positions in order to hedge their holdings, accelerating last week's bond market selloff. Christopher Maloney of Bloomberg explains what is happening perfectly: The forced sellers are investors in the...