Wed, Jul 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Fed tapers, and the band plays on

Thursday, December 19, 2013

Bailey McCann, Opalesque New York:

In a much-watched vote the Federal Open Market Committee (FOMC) agreed to start cutting back on its bond buying program. The Federal Reserve will cut its monthly purchases to $75bn, down $10bn from previous months. In a statement the Fed said that it would continue to reduce its asset purchases in "measured steps" if the economy continues to improve.

Currently, the Fed holds approximately $4tn in bonds and efforts to unwind these holdings are rife with risks from inflation to market corrections. Despite these risks, the Dow Jones industrial average soared 293 points to close at 16,168 - a new high - while the S&P500 was up 30. The rallies quelled any fears that the announcement would set off a panicked reaction like that seen in June when rumors first emerged that the Fed might start cutting stimulus.

In addition to the cuts to bond buying programs, the Fed has also indicated that it will keep its forward guidance on interest rates remaining low over the near term. CBS News noted that the amount of bonds held by the Fed was limiting the amount of quality bonds available to investors, which added support to those who support cutting back on the buying program. Still, others have called the $10bn reduction "taper light".

Bank of Japan officials ......................

To view our full article Click here

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. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. Opalesque Exclusive: ArbitrOption outperforms benchmarks, up 7.18% in H1[more]

    Komfie Manalo, Opalesque Asia: Independent registered advisor ArbitrOption breezed through the tumultuous Brexit referendum and outperformed its benchmarks. ArbitrOption was up 7.18% in the first half of 2016 compared to the S&P 500 which gain

  4. Europe - European hedge funds shrink and shutter as turmoil hurts returns, Investors go bargain-hunting for U.K. property after Brexit vote, Brexit: Guidance for fund directors - what to know and what to ask[more]

    European hedge funds shrink and shutter as turmoil hurts returns From Bloomberg.com: Europe’s hedge-fund industry contracted for a sixth straight quarter as the U.K.’s decision to leave the European Union and concerns that China’s growth is slowing caused losses and forced some money man

  5. Platinum Partners starts liquidation of hedge funds following municipal union kickback scandal[more]

    Komfie Manalo, Opalesque Asia: Platinum Partners, the hedge fund in the middle of a New York City municipal union kickback investigation, is reported to be liquidating two of its funds, the New