covid-19
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License to Yield: How Bond Actions Affect S&P 500 (and Others)
It has been more than a decade since the first time negative interest rates were introduced in 2009, by Sveriges Riksbank, central bank of Sweden in overnight deposit rate. However, the real negative interest rate policy (NIRP) were introduced broadly since 2014, which was called one of the greatest monetary policy experiments. Later, it was adopted by Bank of Japan in 2016, in which ultra-low negative interest rates were already introduced previously in post-1997 Asian Financial Crisis period. Euro area deposit facility graph (tradingeconomics.com) Bank of Japan interest rate decision
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Why 2020 is Different: FX Risk View on 43 Currency Pairs vs USD
In many risk management practice, especially for those who are dealing with market risk in daily basis, year 2008 must be still lingering in their minds. The great recession of 2008 is so great in effect that it has triggered reforms in many regulatory and accounting standards, in which I mentioned one of them in my last post (Basel 4). The year is also used in stress scenarios of many financial market business, strategy, and even regulatory capital calculation. However, how about 2020? The Great Pandemic of 2020 Year 2020,
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When The Clock Stop Ticking
(Originally published in LinkedIn – March 2020) Yesterday, WHO Chief, Adhanom Ghebreyesus announced coronavirus outbreak as pandemic. In his announcement, he explained that the number of cases outside China had increased 13-fold in two weeks and he was “deeply concerned” by “alarming levels of inaction”. One day after the announcement, global market reacted today with massive sell-offs that also affected commodity prices as well. The announcement seemed effective in alarming market participants over what they have been anticipating, another recession. The large difference this time than the last one in 2008, it can create a large both