Highlights A rise in global bond yields has rarely been a reliable precursor of a stronger dollar. This is because the dollar reacts to interest-rate differentials, rather than the level of global yields. Changes in the dollar…
Overweight In an Insight in mid-October we referred to the 10-year US Treasury yield as a sleeping giant and reiterated that this asset class was the last one that had yet to respond to the Fed’s QE as we had first…
Dear Client, We are sending you our Strategy Outlook today, where we outline our thoughts on the macro landscape and the direction of financial markets for 2021 and beyond. Next week, please join me for a webcast on Thursday, December…
This week we removed the S&P insurance index from our underweight list capitalizing gains of 38% since inception. The underweight served its hedging purpose and softened the blow from our previous exposure to banks.…
Highlights Portfolio Strategy The hardening insurance market on the back of firming demand for insurance services especially in residential real estate and automobile markets compel us to lift insurers to a benchmark allocation. A…
The Fed remains a key player enabling the transition from Washington to fiscally loose Buenos Aires consensus as we outlined in this Monday’s Weekly Report. As fiscal valves open and debt piles rise, the bond market will…
Neutral – Downgrade Alert Banks hit all-time lows again this week on the back of mixed profit results. While Q3 loan loss reserves will rise albeit at a slower pace than H1/2020, net interest income ails and difficulty…
Dear client, Next Monday, October 19, we will be hosting our quarterly webcast, “From Alpha To Omega With Anastasios”, at 10am EST; Matt Gertken, BCA’s Geopolitical Strategist will be our guest on the eve of the US…
Neutral - Downgrade Alert Absent another fiscal package, banks risk digesting a new wave of credit defaults, further increasing their loan loss provisions as pandemic wounds remain open. Importantly, according to the…
Highlights Overweighting the SIFI banks is our highest-conviction call, … : Our enthusiasm for the four banks deemed to be systemically important financial institutions is founded on the view that generous monetary and fiscal…