Tag Archives: high yield

As ‘exodus from Europe’ intensifies, watch the UK savings ratio

The list of reasons to worry in the market is growing longer by the day, and investors keep taking money out of risky assets – among them, European ones.

The phenomenon has been dubbed an “exodus from Europe” by analysts at Bank of America Merrill Lynch, who say there is “no surprise that the outflow from European high grade and high yield funds has been much more sizable than outflows from emerging markets debt funds.”

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Will Green November follow Red October?

Last month has become known as Red October, not so much as a hint to the film starring Sean Connery as the commander of the defecting Soviet submarine by that name, but sadly, as an accurate description of the dominant colour on trading screens around the world.

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Don’t do all your stock market shopping on Halloween

The Halloween effect is a well-known seasonal quirk that pushes stock prices up between October 31 and May 1. After a horrible October for stocks, investors are anxious to know whether the market rout is over or it has more to run.

There is one indicator that could provide some clues. We’ve spoken about it before on this website. Bank of America Merrill Lynch’s Bull and Bear indicator triggered a “Sell” signal back in January of this year, and it is now close to a “Buy” one – although not yet.

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Money pours into risky assets before ECB QE

Money has been rushing into risky assets shortly before the European Central Bank starts its quantitative easing program, data from the latest capital flows surveys showed.

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Bearish sentiment signals equities are still a ‘buy’

Despite warnings in some quarters about an imminent stock market crash, equities and other risky assets still have plenty of room to run, according to a recent analysis of movements of capital.

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Deflation now, inflation later down the road?

By Antonia Oprita

Talk of inflation may seem absurd right now, when everybody worries about deflation. But is this actually the calm before the storm?

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Negative yields for corporate bonds ahead

Fancy paying for the privilege of lending money to a company? You will soon have the chance to do so. In fact, some investors already saw negative yields for corporate bonds.

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‘Equity vigilantes’ may be pushing the S&P 500 lower

“Equity vigilantes” may be trying to push the S&P 500 lower in the coming weeks just to force the Federal Reserve to stay dovish, analysts at Bank of America Merrill Lynch have warned in their most recent report on capital flows.

The data shows that money left US equities for the fourth straight week, with outflows totalling $3.3 billion last week.

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The weak euro, the strong dollar and the new global crisis

By Antonia Oprita

With elections in Greece stealing the show, investors would do well to keep an eye on the weakening euro and the strengthening dollar.

The re-balancing of the exchange rates of the world’s two main reserve currencies could have painful consequences for many countries and markets.

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Flight to safety continues in the first week of 2015

This year started like 2014 finished when it comes to capital flows. Money flew out of risky assets such as high-yield debt and equities, and into the safety of high grade – or investment-grade rated – bonds.

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