ECB warns of rising corporate debt in the EU

Fundamental perspectives The European Central Bank (ECB) has raised concerns about the growing corporate debt burden among major euro area service sectors, as this could increase pressure on governments and lenders in those countries. The current stimulus is issuing a 1.85 trillion euro package for the purchase of bonds and …

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India needs to watch out for a tantrum in global financial markets

With a better economic recovery and higher than expected inflation in the United States, the Federal Reserve has signaled that it may reduce its bond purchases. The International Monetary Fund (IMF), in its April 2021 World Economic Outlook, raised the possibility of capital outflows from emerging markets and developing economies …

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Collapsing Yields on Risk Investor Limits in US Debt Tests

The additional premium that investors receive for buying the debt of the lowest-rated companies in the United States has fallen to its lowest level in seven years, resulting in American economy leads to excessive risk-taking. The premium, or “spread,” above the benchmark US government bond yields with triple C ratings …

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How to juggle government bonds and stocks in unprecedented times

Keith Balmer of BMO Global Asset Management The role of fixed income securities in a multi-asset portfolio is being questioned in today’s markets. Generally, high quality bonds such as government debt have been an ideal medium for equity holdings in a multi-asset portfolio. Correlations between stocks and fixed income securities …

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Permanently suspend the debt limit

Our nation risks another self-inflicted injury when the debt limit is suspended expired July 31. Allowing expiration exposes the nation to emergencies, harms our public credit and financial stability, and does not solve the federal government’s long-term fiscal problems. Congress and the president should marry a permanent suspension of the …

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