Category: QE

  • CTAs Set to Thrive at End of QE Era

    | | ECB, Education, QE

    In the midst of any foggy economic phenomenon, it’s difficult for an industry to really assess how it’s being affected. But with time comes clarity, and it’s now possible to look back on the past eight years of Fed policy and draw broad conclusions about how Quantitative Easing actions created headwinds for investors in the managed futures space. Crucially, these conclusions give us a reason to feel optimistic looking toward 2017 and the return to a world of abundant, varied trading opportunities … Read more CTAs Set to Thrive at End of QE Era
  • Goldman Management – CTA performance commentary

    | | bonds, Commodity Trading Advisor, CTA, Federal Reserve, Indexes, interest rates, Managed Futures, QE

    One of the biggest surprises this year has been the sharp decline in long term interest rates despite the Federal Reserve’s monthly removal of $10 billion in bond purchases to gradually reduce quantitative easing. Numerous market commentators have put forth explanations for the rate decline, touching on short covering, limited supply, economic woes, weather etc. A factor which has only been partly discussed is the correlation between European rates and US rates, especially the link between the German Bund and the US 10- year Treasury. These two have been loosely tethered to one another for more than 25 years. In the last sovereign debt crisis during the summer of 2012 Italian and Spanish long term rates stood at 7%, and have since dramatically declined, ending last year yielding 4.1%. … Read more Goldman Management – CTA performance commentary
  • FOMC: Some Growth Seen; Not Much Else New

    | | QE

    Investors and traders keep watching the Federal Reserve’s Open Market Committee for new signals on monetary policy but the curtains remain closely drawn. The statement issued by the FOMC Wednesday after its two-day meeting shed little light from the March 19 meeting. Other than the first paragraph, the statement was identical to the one released after the March meeting, said Sterling Smith, futures specialist and vice president for Commodity Research at the Citibank Institutional Client Group in Chicago … Read more FOMC: Some Growth Seen; Not Much Else New
  • FOMC Meeting in Focus But No Big Changes Expected

    | | Federal Reserve, QE

    Market players and analysts don’t expect a trumpet blast from the Federal Reserve Board’s Open Market Committee (FOMC) meeting on April 29-30, anticipating that there won’t be any major changes in monetary policy. The FOMC has been tapering its quantitative easing (QE) program in swatches of $10 billion and analysts expect another cut by that amount to about $45 billion in bond buying. Markets are not expected to react much to the FOMC actions unless there is something unexpected. Several analysts emphasized there is no press conference scheduled Wednesday after the statement is released at 2 p.m. EST, which indicates the FOMC won’t be doing any heavy lifting. Some analysts are looking ahead to the June FOMC meeting as the time the committee might be more forthcoming on monetary actions … Read more FOMC Meeting in Focus But No Big Changes Expected