It is the 21st of November 2019


Goldman Warns Of "Upward Shock" To Rates, Hints At Trillions In Losses

Having been proven wrong for so many months (and years) in its optimistic outlook on the economy, one would think Goldman Sachs - who as we have repeatedly documented has been extremely bullish on the USD as a result of what it believes will be several rate hikes due to an economic recovery that just refuses to come - would take the summer off when it comes to predictions. No such luck, and in an overnight note, Goldman is once again trying to forecast what will happen to rates in the coming months.

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US Says China Is Building A "Great Wall Of Self-Isolation"

The back and forth between the US and China continues, as US defense secretary Ash Carter said today at the 15th Asia Security Summit in Singapore that China risks isolating itself with its actions in the South China Sea.

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Why The Fed Is Trapped: A 1% Increase In Rates Would Result In Up To $2.4 Trillion Of Losses

A funny thing happened as every central bank around the world rushed to stimulate their economy by devaluing their currency in a global FX war that is now 7 years old and getting more violent by the day: with bond yields plunging, and over $10 trillion in global debt now having a negative yield, every fixed income investor starved for yield was pushed into the long end of the bond curve where whatever yield is left in the world of "safe" bonds is to be found. As long as interest rates never go up, this strategy is relatively safe. However, a major risk emerges when central banks start tightening.

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