Subprime. It’s the eight-letter word that turned into something of a four-letter word during the 2008 global financial crisis. Even now, ten years later, that stink has not washed off. Investors have been eyeing subprime auto asset-backed securities (ABS) for signs of trouble, wondering if growing auto debt levels, rising interest rates, deteriorating performance and changing issuer composition could mean the next subprime storm is brewing.
The LOIS spread is at its widest point since the financial crisis. It may be unnerving, but we don't think it's a sign of trouble in the financial system.
We all knew volatility couldn’t stay low forever, even with solid global growth and low inflation. Rising volatility is common in the late stage of the economic cycle, and negative headlines have been dominating market sentiment.
I noticed an interesting result in the Conference Board’s most recent Index of Consumer Confidence in March. The percentage of survey respondents describing business conditions as "good" reached its highest point since 2000. Great news, right?
We expect the upward trend in rates to continue, but at a fairly slow pace that shouldn’t disrupt risk assets.
Many of India’s state-owned banks are in trouble. This month the government is injecting $13 billion to help these banks offload non-performing loans. By 2020, the total cost of injections is projected to rise to $21 billion, about 1.3% of GDP.
It’s no secret that the retail sector has been under a lot of pressure. Retailers are facing significant headwinds, including high competition, increasing promotional costs and declining mall traffic. So is retail exposure a problem for CMBS? The short answer is yes. But it’s complicated.
FX trading involves infinite complexities, opportunities and risks. Loomis Sayles breaks down some of the concepts and describes the firm's approach.
Cracks are starting to appear in five highly leveraged economies: Canada, Australia, Norway, Sweden and New Zealand. For several years following the global financial crisis, these five countries all shared a common theme—a multi-year housing boom, fueled by low interest rates, which resulted in very elevated levels of household debt.