Understanding Negative Yields

24 March 2015

It is a measure of Ireland’s phenomenal recovery that it has now become the latest country to issue short-dated sovereign debt at a negative yield – meaning that investors sacrifice a return on their money in exchange for security. This week saw Ireland offer €500 million worth of six-month debt at a yield of minus 0.01%, guaranteeing investors a loss if they hold the bonds to maturity.

Bailout or Grexit?

17 February 2015

Greece could enjoy faster growth than any other EU member state next year, according to the European Commission, as long as it sticks to the bailout program currently the subject of heated negotiations with its European partners. If the talks fail, Greece could default on its debt next month and leave – or be forced out – of the eurozone.

How tough can easing be?

13 January 2015

After inflation in the eurozone went into reverse in December, the European Central Bank is finally moving toward implementing its long-discussed plans for buying bonds to stimulate the continent’s economy.

Fed Stops Printing Money

04 November 2014

The US Federal Reserve has completed the ‘tapering’ of its quantitative easing program, which injected tens of billions of dollars into the American economy through bond purchases, but higher interest rates still look to be a year away in the US and even further off in other parts of the world.

Ready for new challenges

09 September 2014

A slight decline in Germany’s performance in the second quarter should not overshadow the fundamental soundness of Europe’s largest economy.