20.06.2022
How to survive higher real rates
Central Banks have been explicit – they mean to tighten financial conditions in order to get inflation down.
Qi’s Credit Impulse chart aggregates together all the macro factors that capture financial conditions – credit spreads, the level of real yields, slope of the yield curve, currency strength, money market liquidity etc.
The widespread perception would be that the Fed is the most hawkish, & the ECB only just starting to catch-up. Actually, relative to trend, European financial conditions have tightened to multi-year extremes.
Qi’s Credit Impulse chart aggregates together all the macro factors that capture financial conditions – credit spreads, the level of real yields, slope of the yield curve, currency strength, money market liquidity etc.
The widespread perception would be that the Fed is the most hawkish, & the ECB only just starting to catch-up. Actually, relative to trend, European financial conditions have tightened to multi-year extremes.
