A Fed view on low long-term yields

Federal Reserve Chairman Bernanke recently explained globally low long-term yields as a combination of anchored inflation expectations, negative real policy rates, and a compressed term...

An ECB review of forward guidance

The ECB has reviewed its own forward guidance in a global context. Forward guidance uses communication to add monetary accommodation at the zero...

Liquidity regulation and monetary policy

From 2015 banks will have to satisfy new liquidity standards. Of particular importance is the liquidity coverage ratio, which requires institutions to hold enough “high...

Bank of Japan’s new mandate to overcome inflation

Bank of Japan Governor Shirakawa emphasized his instutions strengthened mandate to end deflation. The key decisions were the introduction of a 2% inflation target...

U.S. Fed: Why replacement of “operation twist” with outright bond purchases...

JP Morgan’s Nikolaos Panigirtzoglou presented a nice reasoning, why the December 12 2012 U.S. Fed decision to replace its maturity extension program with outright bond...

What we can learn from Asia’s “tapering”

J.P. Morgan’s David Fernandez points out that central bank “tapering” (moderation of balance sheet expansion and related monetary accommodation, currently envisaged by the U.S....

The impact of non-conventional monetary policy on banks

Non-conventional monetary policy seems to benefit banks' balance sheets. After all, it offers cheap refinancing and credit market support. However, an empirical analysis by...

Risks related to the Fed’s exit from ultra-easy policy

The IMF Article IV consultations for the U.S. suggest that a Federal Reserve exit from unconventional and highly accommodative policy may be challenging. Most...

The Federal Reserve’s increased influence on financial markets

A new empirical study suggests that the Federal Reserve has exerted a stronger influence on fixed income, commodity, and currency markets since it started...

The ECB’s quantitative and qualititative easing

The ECB has introduced a set of new policies that emulate quantitative and qualitative easing. Key measures are targeted long-term repo operations, asset-backed securities purchases,...

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Transaction costs are a key consideration for the development of trading strategies; and not just in final profitability checks. Indeed, disregard for trading costs...

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Unsterilized central bank interventions in foreign exchange and securities markets increase base money liquidity independently from demand. Thus, they principally affect the money price...

Trading strategies based on implicit subsidies

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