Jitters
"Global Bond Risk Premiums Soar as Investors Seek Safest Assets"
There appears to be a re-rating of risk sweeping through global markets, a flow on from the sub-prime meltdown which apparently will not be quite as contained as has been speculated.
There are a lot of "interesting" things happening in markets at the moment. A wholesale re-rating of risk can potentially have a broad based inpact on the pricing of debt and equity by pushing up risk premiums and consequently pushing down prices.
The US dollar (add China/Japan) liquidity spigot is still fully open. It seems that investment markets may be so soaked with liquidty as the moment that they can no longer absorb any more. It is possibly we may see continued inflationary pressures concurrent with a decline in prices in asset classes.
There appears to be a re-rating of risk sweeping through global markets, a flow on from the sub-prime meltdown which apparently will not be quite as contained as has been speculated.
There are a lot of "interesting" things happening in markets at the moment. A wholesale re-rating of risk can potentially have a broad based inpact on the pricing of debt and equity by pushing up risk premiums and consequently pushing down prices.
The US dollar (add China/Japan) liquidity spigot is still fully open. It seems that investment markets may be so soaked with liquidty as the moment that they can no longer absorb any more. It is possibly we may see continued inflationary pressures concurrent with a decline in prices in asset classes.
posted by Peter at 11:43 am
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