Super Taper Tantrum?

You may recall back in May 2013 there was a sharp sell-off in equities and fixed interest when Ben Bernanke, the chairman of the Federal Reserve, the US central bank announced that tapering of QE was ready to start. The market ignored the good news that the patient, the US economy could come off its money printing life support and …

What’s Up Doc?

So what’s up with the markets? Sharp falls globally, the FTSE 100 pulling back from over 6,800 on a charge towards the highest ever close of 6,930 in December 1999 and the Japanese market falling 10%, that’s technically called a correction. I love the euphemism. As to causes the two best explanations I have read are firstly mixed signals from the US about QE. …

Liquidity Squeeze in the Bond Market

Liquidity Squeeze in the Bond Market  The lead article in a recent edition of Investment Week, a trade paper I subscribe to highlighted significant liquidity issues in the bond market. Liquidity refers to the ability of traders, fund managers and investors to trade stock. It is crucial to ensure a properly functioning market whilst a liquidity crunch can cause difficulty in establishing prices which …