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Big Week Ahead for Central Banks

By David O'Malley | June 12, 2017

Last Friday presented the first round of cracks in the stock market in recent memory. The technology heavy NASDAQ 100 Index suffered a 2.4% decline with many of the high… Read More

Foreign Demand Driving Credit Spreads Tighter

By Mark Heppenstall | March 23, 2017

Despite recent signs of accelerating growth and inflation in the global economy, central bank monetary policy remains very accommodative. Short-term rates are stuck near or below the zero-level across most of the developed world, and more than $8 trillion in sovereign debt still trades with negative yields. Even BB-rated Portugal can issue 2-year bonds at just over 50 basis points (bps) today, less than half the rate paid by 2-year on U.S. Treasury notes.

Market Breadth Deteriorating, Inflation Pressure Building

By Zhiwei Ren | October 20, 2016

A New York Times article about how Walmart is getting better results by paying employees more recently caught my attention. Walmart has 1.4 million employees in U.S., and this strategy change will have ripple effects on labor market. In the past few months, we have seen several signs that some long-term trends are changing

Structural Reform, Not More Monetary Policy, Needed for Stronger Nominal Growth

By David O'Malley | August 1, 2016

Last week the Federal Reserve (Fed) decided to keep short-term interest rates unchanged. The decision was widely expected by market participants, and many now expect the Fed to keep interest rates unchanged well into 2017.

Sluggish U.S. Growth, and Status Quo From Central Banks

By David O'Malley | May 2, 2016

Last week the Federal Reserve (Fed) and the Bank of Japan (BOJ) confirmed the current course of monetary policy. The Fed remains data-dependent in the U.S., and the BOJ continues to signal that it has the capacity to further stimulate with monetary policy.

All Eyes on the Central Banks This Week

By David O'Malley | April 25, 2016

Markets across the globe will be focused on the European Central Bank (ECB), Bank of Japan (BOJ) and the Federal Reserve (Fed) this week. With sluggish global growth and negative interest rates on the top of economist’s minds, this week’s announcements will be closely scrutinized.

Are Negative Interest Rates Losing Their Economic Impact?

By John Swarr | February 18, 2016

This week’s chart intends to capture the divergence between theory and reality in recent central bank actions to lower deposit rates into negative territory. Theory held up in practice in 2014, but recent moves to lower policy rates have not produced the same effects.



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The material provided here is for informational use only. The views expressed are those of the author, and do not necessarily reflect the views of Penn Mutual Asset Management.

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