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Special Report Executive Summary The Excess Return Of Corporate Bonds Is Driven By Corporate Profits  Given that a sustainable business cycle acceleration in China is unlikely in the short term, onshore government bond yields will likely…
  Chinese authorities have asked state-owned firms and banks to closely examine their exposure to Ant Group and report their findings as soon as possible. The move highlights that the regulatory clampdown on Chinese companies…
  China’s 70-city monthly average new home prices were broadly flat in January at -0.04% m/m following four consecutive months of falling prices. The underlying data show a bifurcation whereby new home prices in Tier 1 and…
Executive Summary The ultimate inflation anchor is unit labor costs. If relative price shocks cause employees to demand higher wages from their employers, and if they are granted wage increases above and beyond their productivity…
Executive Summary Russian Invasion Scenarios And Likely Equity Impact  The Ukraine crisis is escalating as predicted. We maintain our odds: 65% limited incursion, 10% full-scale invasion, 25% diplomatic de-escalation.…
Executive Summary Oil-Price Risk Skewed Upward  The $10-$15/bbl risk premium in Brent prices will dissipate over the next month. Russia's best outcome is to follow the off-ramp offered by the US. President Biden'…
  Chinese producer and consumer price inflation eased in January and fell below consensus estimates. CPI inflation slowed from 1.5% y/y to 0.9% y/y, slightly lower than the 1.0% expected. Similarly, at 9.1% y/y PPI inflation is…
Executive Summary China Needs To Create RMB35 Trillion In Credit In 2022  The pace of credit creation in January increased sharply over December. However, the jump was less than meets the eye compared with previous easing…
Special Report Dear Client, This week, the US Bond Strategy service is hosting its Quarterly Webcast (February 15 at 10:00 AM EST, 15:00 PM GMT, 16:00 PM CET). In addition, we are sending this Quarterly Chartpack that provides a recap of our key…
Special Report Executive Summary Brazil: Are Political & Macro Risks Priced-In?  Presidential elections are due in Brazil on October 2, 2022. While the left-of-center former President Lula da Silva will likely win, the road to his…