Credit score Markets Are Menaced by a $1 Trillion Central Financial institution Retreat

Add central banks to the wall of fear for international credit score markets.

This 12 months’s rally in danger belongings is extra to do with a $1 trillion central financial institution liquidity injection than any enchancment within the financial outlook, in response to Citigroup Inc.. That huge tailwind — sufficient to lop 50 foundation factors off the investment-grade danger premium — might quickly turn out to be an enormous drag as policymakers get again to quashing inflation, having extinguished the banking-sector fireplace. 

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