Wed, Oct 1, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Economists and fund managers question how long post taper decision euphoria can continue

Thursday, September 19, 2013

Beverly Chandler, Opalesque London:

Jon Mawby, manager of the GLG Strategic Bond and GLG Global Corporate Bond funds says there are too many tail risks to taper, commenting that while the Federal Reserve (Fed) decided not to taper asset purchases at the September meeting, indicating that whilst the economic data was improving, the quality and consistency of that data isn't robust enough to justify withdrawing the stimulus effect of quantitative easing (QE). Mawby writes: "Whilst the US unemployment rate is falling, it is more due to the declining participation rate rather than the quantity and quality of employment growing and improving. The rising rate environment, post the initial comments over the potential for taper, have also started to feed through to both mortgage rates and consumer confidence. This has started to impact the potential for the US economy to continue to build the momentum many market participants have identified as the beginning of the end for QE."

Mawby feels that, 'with a nod to the (potential) new Fed Chairperson Janet Yellen’, the decision not to taper asset purchases this month may have removed a conflict of the current Federal Open Market Committee (FOMC) wanting to taper, whilst the new incarnation may have other ideas. "If this were the case, it would have caused even more confusion for markets, with the Bernanke Fed tapering and the Yellen Fed then reversing this po......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Socially responsible investments grow in demand, but performance questions persist[more]

    Komfie Manalo, Opalesque Asia: A study by financial services firm TIAA-CREF showed that interest in socially responsible investing (SRI) is increasing rapidly, but investors are still asking if investing in an SRI strategy

  2. Regulatory - Ireland launches structure for passporting loan origination funds within EU[more]

    From Asiaasset.com: The Irish Funds Industry Association (IFIA) has introduced new loan origination capabilities that will offer Asian managers and investors a new structure under the European Union’s (EU’s) Alternative Investment Fund Managers Directive (AIFMD). The new structure will allow the mar

  3. Europe - Ed Miliband's war on hedge funds could damage City of London[more]

    From Telegraph.co.uk: Ed Miliband’s plans to wage war on hedge funds could be potentially more damaging to the City of London than even the financial transaction tax (FTT), senior banking sources warned on Tuesday night. The Leader of the Opposition took aim at a number of industries as part of his

  4. News Briefs - SEC probes Pimco ETF over pricing irregularities, BEPs: Action plan released and UK first to adopt country-by-country reporting[more]

    SEC probes Pimco ETF over pricing irregularities The Securities and Exchange Commission is investigating Pimco’s pricing of exchange traded funds, the latest cloud to hang over the world’s largest bond manager, which has been dogged by poor performance and management infighting. Pimco on

  5. CalPERS’ move might alter hedge fund fees for good[more]

    Benedicte Gravrand, Opalesque Geneva: When CalPERS, the California Public Employees’ Retirement System, announced on September 15th that it was unwinding its hedge-fund portfolio, it was seen by many as is a significant blow to the sector’s appeal. The Fund is