Lane’s currency faux pas, Diving into US investment grade bond markets
Wednesday 9 September 2020Â –Â Â Vol.11 Ed.37.3
Commentary: Lane’s currency faux pas
By Mark Sobel in Washington
With the seemingly innocuous observation that the euro-dollar rate ‘does matter’ for monetary policy, European Central Bank Chief Economist Philip Lane unleashed a bout of foreign exchange market turmoil, perceived by some as talking down the euro. Amid a global economy characterised by extreme stress, finance ministry and central bank officials need to exercise serious caution in commenting on currency markets. Currency protectionism, especially in this day of populism, is an ever present and looming threat.
Read the full commentary on the website.
Podcast:Â US investment grade bond markets
James Blair, investment director of fixed income at Capital Group, joins OMFIF’s Pierre Ortlieb to talk about the state of US investment grade bond markets. They discuss how these markets have performed during the Covid-19 crisis, what central bank policy innovation means for corporate bonds, and issues regarding liquidity and market structure.
Listen to the recording, or search ‘OMFIF’ on your smartphone’s podcast app.