central banks QE

Balance sheets

Weaker Balance Sheets Are Not Very Attractive

Weaker balance sheets are not very attractive…From time time, we check out whether the “junk,” as defined by a non-investment grade credit rating, is a good investment. At the moment, it doesn’t seem to be.

BrexitPepino TC

UK: What A Mess

BofAML | BoE’s decision to hold rates looks like a policy mistake. But one they can rectify quickly, at their August 4 meeting. We expect a 25bp rate cut, credit easing and potentially a QE salvo. We expect slightly less than we thought before yesterday’s meeting. A properly combined fiscal and monetary push seems unlikely: a fiscal stimulus will take longer to design, and may be limited given budget constraints.