Weekly Note – A Bond Bubble?

A Bond Bubble?

Good Morning,

Not every market exacted pain on its participants this past week, but enough did make it an unpleasant start to November for a lot of punters. While dollar weakness was notable — both against non-EM currencies and gold — the booby prize for global assets probably goes to high yield credit (interesting given the topic of our note today). Are we in a massive bond bubble?

It seems likely that some of this risk reduction is down to the US election and the tightening of the margins after the latest in a seemingly never-ending series of scandals engulfing the two candidates. I have talked in the past about our dislike for the current political element in the US, but all I can say about the topic at this point is at least the end is in sight.

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GM360 Note – 4th November 2016

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Categories: Daily Note