Nov. 24, 2015
| William Black, CFA, Mark Paris and Stephanie Larosiliere
During the third quarter, the municipal bond market was able to right the ship. Despite heightened volatility in the global capital markets, the asset class posted strong positive returns for the quarter.
Nov. 12, 2015
| Tony Wong, Mark Gilley & Justo Gonzalez
Liquidity in fixed income markets has become a major focus of concern inside and outside of the investing community. Investors, asset managers, bank regulators and policymakers are worried that changes in the bond markets, post-financial crisis, have led to greatly reduced levels of bond market liquidity — meaning it may now be more difficult to transact smoothly in bond markets without price disruptions.
After posting a trepid growth rate of 0.9% in the first quarter of 2015, the US economy rebounded to a 3.9% growth rate in the second quarter. Third quarter growth in the US likely settled back near a 2% growth rate supported by further job creation, strength in service industries, continued housing market expansion, and robust auto sales.
The disruptions to financial markets and the declines in a wide range of commodity markets over the past two months spell the end of the idea that emerging market (EM) economies could lead the global economy out of the sub-par growth that has prevailed since the crisis of 2008-09.