Hidden Risks from ECB’s Pandemic Tools

The ECB’s policy response to the Covid crisis has been game changing, but has also added to the list of risks that undermine financial stability. The disruption to wholesale bank funding is a case in point In the midst of an unprecedented economic contraction, it is...

Don’t Fear the Rise in Yields

The last few weeks have seen US yields breakout to the topside of the tight range they have been trading in. The market narrative is that yields have been boosted by more clarity on the US election – a Democrat win with a mooted $3.5 trillion stimulus package in...

Pandemic a Potential Trigger for QE in EM

The unparalleled nature of the response to the COVID-19 crisis – indiscriminately triggering sudden-stops across economies – suggest that some emerging markets could be closer to crossing the Rubicon into full-blown QE. Many EM central banks already purchase...