World debt has rapidly increased since 1997. And is now around $225 trillion. Is it sustainable?
Source: Game of Trades
Even with gold near ATHs, central banks are still buying record tonnage of yellow metal...
Source: FT
Median sector returns in the year before Election Day: Tech does not like elections
Source: TME, GS
Ford's Rise to Investment Grade Sparks Historic Shift in Junk Bond Market!
Ford's recent credit rating upgrade to Investment Grade status triggered a remarkable $46.8 billion exit from junk bond indexes, marking the most significant reduction in the global junk bond benchmark since 2005. This makes Ford the largest "rising star" in history. It underscores a transformation in corporate priorities, with a heightened focus on financial resilience amidst economic uncertainties. The trend of "fallen angels" descending into junk status has notably decelerated, and analysts anticipate more companies achieving investment grade status in the coming years. Source: Bloomberg #Finance #InvestmentGrade #JunkBonds 📉📊📈
The sudden deterioration of US economic surprises is among the factors behind the recent decline in long duration bonds
Source: Bloomberg, Nomura, TME
Markets are now betting on big rate cuts next year
This chart shows that money markets have raised policy-easing wagers since the middle of October: by September 2024, the FED should have cut by 70 basis points, the ECB by 65 basis points and the BoE by 40 basis points. (pricing is derived from swap rates tied to policy-meeting dates) Source: Bloomberg
Key Events This Week:
1. Fed Chair Powell Speaks - Wednesday 2. Initial Jobless Claims - Thursday 3. Fed Chair Powell Speaks - Thursday 4. Consumer Sentiment data - Friday 5. ~10% of S&P 500 reports earnings this week 6. Total of 12 Fed speaker events All attention remains on the Fed. Source: The Kobeissi Letter
Will she get it right this time?
ECB
