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Portfolio Report Fixed Income

In: Business and Management

Submitted By elephantrides
Words 300
Pages 2
FIN 443
Portfolio Report: Week 4

* Fixed Income * Japan’s Central Bank has instituted negative interest rates. It’s now the fifth major central bank to do so. * The Fed met after Japan’s decision and released a more conservative statement compared to their earlier actions of this year so far. * Treasury yields were down especially for the 5 and 10 year treasuries. * Last week the fed committee had a meeting and one of the biggest things that was observed from the meeting was that the committee will monitor global and economic development due to the recent uncertainty of potential global growth. * The fed had a general outlook for increasing interest rates, but for now they will be looking at income as a performance driver in the market. * Puerto Rico came up with a plan on Monday to reduce its debt by approximately 46%. Not many details about the plan were released, but from what we have found its obvious and of great importance to have great and high level of participation for all involved. Puerto Rico has by May first to pay the a large debt service payment.

* FX * Preliminary Q4 earnings of Great Britain’s GDP indicated a .5% growth, totalling to 2.2% growth for the full year. * British exit from the European Union more likely as British voters fear immigration and instability of the EU. * The European Central Bank remains under pressure from financial markets to provide even more monetary stimulus. The preliminary estimate of December inflation showed rates of .4% for annual inflation, compared to .2% back in November. * EUR/USD is currently trading at the same levels as last week. * The South African Reserve Bank hiked policy rates to .5% after a divided vote at the Monetary Policy Committee meeting. The SARB is aiming to control…...

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