Download PDF Introduction The UK government will spend close to £111.2bn servicing its debt this year, more than the entire schools budget. With 30-year gilt yields at their highest since 1998 and the Chancellor’s fiscal headroom at just £23.6bn, the pressure on the public finances is not letting up. A Read more…
Download PDF Macro overview Can the world’s most privileged issuer face liquidity stress? The U.S. Treasury is considered the most stable market in the world, anchoring global pricing and liquidity conditions. However, 2026 poses an unprecedented challenge for the U.S. Treasury Department. A sizable maturity wall of $9.6tn, accounting for Read more…
Introduction Over the past ten years, Germany has always been the leading European country in terms of economic growth. Notwithstanding a series of emergencies arising from Southern Europe, such as the Greek government-debt crisis and the Italian political instability, the federation was able to deliver an impressive economic performance, corroborated Read more…
In mid-September, there has been a liquidity crisis in the money market of secured overnight borrowing. We have analyzed this in an article published one month ago, headed “Liquidity Squeeze: What is the Repo-Scarcity Premium?”. Since then, the Federal Reserve proceeded to inject more than 230 billion over the period Read more…
It is widely known that the USA and the EU are in different economic conditions: the American economy has risen from the crisis and the FED is tightening the policy, while Draghi, the president of the ECB, declared that they will keep the quantitative easing going. Unemployment in the US Read more…
The Emerging Markets sell-off of late January highlighted the importance of the Chinese economy in the global markets and the instability of its financial sector. China has pulled global growth in the last decade, attracting investments, exporting goods all over the world and financing businesses and governments, especially the US. Read more…