High yield bonds, or what are better known as junk bonds, have dominated the front pages of the financial press in recent months. After enjoying a great run in recent years, yields have been pushed to record lows. As we get closer to higher interest rates, further gains will be harder to come by, and following the ‘Dodd-Frank’ regulation changes, investment banks will hold less corporate bond inventory thereby reducing the liquidity of the asset class.
After all the opposition in Europe to QE during the worst of the debt crisis, Mario Draghi announced in September that the ECB will launch a QE programme. Sceptics argue that it is too little too late, but at least the taboo has finally been broken to expanding the monetary base in Europe. This article looks at how weak the euro will get as a result of this QE programme.
With a huge amount of liquidity available throughout global financial systems, it has undoubtedly invigorated animal spirits in corporate boardrooms. One area where this is most noticeable is the growing appetite for mergers and acquisitions (M&A). This article looks at some of the reasons why M&A has made a comeback, and the hotly debated topic of ‘inversion diversion’, which is increasingly irking the Obama Administration.
Having just endured the worst housing crisis in the history of the state, it seems inconceivable that we could stoke another property bubble so soon after the last one. However, with rapid gains in the property market over the past year, coupled with a chronic lack of supply in Dublin, unless something is done to take the froth out of the market, we think there is a real risk that property prices get stretched to unsustainable levels again.
Saving, spending and sharing: when it comes to the facts of money our kids know a lot more than we think. Raising children who are mindful with their money is all about taking advantage of the opportunities to demonstrate our values in relation to financial decisions throughout life.
Most parents would like to alleviate life’s struggle for their children without eliminating it entirely, and where to strike that balance is a matter for individuals to discuss and decide.
When the global financial crisis hit, many investors found themselves unprepared and overexposed. Although a few wise sages warned of the dangers in advance, more often than not, their advice fell on deaf ears. This is typical of human behaviour in the run up to all major crises throughout economic history. In the future, investors need a better understanding of what drives recessions and crashes to spot the next one before it’s too late.
As we pass the half-way point of the year, we look at how 2014 has fared so far and what the rest of the year has in store for each of the main economic areas and asset classes.
The recovery in house prices has received much attention in the media of late. So much so that 12 months on from non-stop talk about what to do with ghost estates, speculation has begun that another property bubble is around the corner. We look at what has caused this shift.
Over the past 30 years no other part of the world has had such a profound impact on the global economy as Asia, and taking a view on where to invest in the world today increasingly requires an understanding of the region.