There is no free lunch, Keynesian responses do provide short term stimulus but place an anchor on future economic growth.
If you venture off the well trodden pathways, there’s always something interesting happening in debt markets.
For those that seek out the illiquidity premium, this is a rare opportunity to increase your prospective return whilst decreasing the risk of long-term capital loss.
In both equity and debt markets investors are buying securities that have identical characteristics to the disasters of the recent past.
Ray Dalio’s seminal book should be read by all investors and policy makers. However, following its policy prescriptions helps create the next debt crisis.
The events overtaking Argentina and Turkey in recent months are textbook cases of an emerging market crisis. This article reviews the build-up, the break-down, the responses and who else is at risk.
This article details twelve global debt sectors where there’s lax credit standards and increasing risk levels, pointing to global credit being late cycle with limited upside left beyond carry.
The Bank for International Settlements (BIS) quarterly report is always worth the read. Whilst it is academic in style and length, it consistently raises material that matters. Taken from the September report, the graphic below highlights the big issues for global corporate debt. The rest of this short article explains each component and its importance.