Daily Note – How to handle a Fed rate hike


  • High Yield Spreads on the rise
  • Beware Bulls bearing gifts!
  • Look for the FOMC pop ‘n’ drop
  • Traders head for the pubs
  • Eurozone: Strong Industrial Production to begin Q4

Good morning,

All eyes are on the US this week.

High yield spreads continued to rise as Brent oil prices and the S&P 500 had intraday ranges of nearly 6% and 2%, respectively. The S&P 500 closed up 0.3% and Brent oil is trading almost unchanged. US 10y Treasury yields rose about 10bps and US high yield spreads rose over 15bps.

Oil is now trading around $38. High yield spreads were likely affected by news of further high yield fund redemption. The oil market is shot.

Download a FULL PDF version of the Daily Note:

GlobalMacro360 Daily Note 15th December 2015


The statements, opinions and analyses presented in the articles, newsletters, and other materials appearing on this website are provided as general information and for educational purposes. Opinions, estimates and probabilities expressed herein constitute the judgment of the author as of the date indicated and are subject to change without notice. Nothing contained in this website is intended to be, nor shall it be construed as, investment advice, nor is it to be relied upon in making any investment or other decision. Prior to making any investment decision, you are advised to consult with your broker, investment advisor or other appropriate tax or financial professional to determine the suitability of any investment. David McWilliams shall not be responsible or have any liability for investment decisions based upon, or the results obtained from, the information provided.

Categories: Daily Note