12 09 2018 | by Victor Xing | Capital Markets
10 14 2018 | by Victor Xing | Capital Markets
Roundabout path in the snap-back of long-term bond yields
09 23 2018 | by Victor Xing | Central Banks
Calm before the storm as quantitative tightening looms
05 20 2018 | by Victor Xing | Central Banks
Alternative narrative on the natural rate of interest
01 07 2018 | by Victor Xing | Capital Markets
Flatter yield curve a symptom of ineffective tightening
12 04 2017 | by Victor Xing | Central Banks
Bond market term premium and wolves of Yellowstone
10 17 2017 | by Victor Xing | Capital Markets
How we learned to stop worrying and love the “fake markets”
09 20 2017 | by Victor Xing | Central Banks
QE’s distributional effects a rising political liability
04 18 2017 | by Victor Xing | Capital Markets
Persistent low volatility threatens active fund managers
02 17 2017 | by Victor Xing | Economics
Looming risks through the prism of bifurcated housing market
09 30 2015 | by Victor Xing | Capital Markets
Did the ultra-stimulative monetary policy contribute to the energy crash?
The drivers behind the energy boom
The energy boom is a direct results of years of ultra-easy monetary policies by the Federal Reserve. Policy accommodation and financial repression pushed high-yield borrowing cost to historic lows, which helped finance risky investments including the U.S. shale revolution.
Please refer to this article from 2012:
The effects of higher energy production
The U.S. shale revolution financed by cheap funding allowed the U.S. to become a major oil producer. Yet, together with energy independence came excess supply. With excess supply, WTI and Brent crude prices could not be sustained above $100/bbl. What happened next was a supply driven bust, mixed with lower demand due to uneven growth.
With falling commodities sending jittery investors into less-risky assets, borrowing cost for energy companies in the high yield space have risen, adding to their woes (and resulting in recent job cuts).
Please refer to the following article from July 2015:
The energy and commodity correction is market’s reaction to policy-induced imbalances.
Next article09 28 2015 | by Victor Xing | Central Banks