The world of 2018 is an exciting place – but will a quantitative easing hangover from the global financial crisis be a blight on the horizon? Jacob Mitchell explains.
During the global financial crisis central banks prescribed an antibiotic, known as quantitative easing (QE), to an ailing global economy. Today, the global economy is in good health, with the antibiotic now creating dangerous distortions in global asset markets.
One of the biggest distortions is within fixed income, with European junk bonds at 2 per cent, absurdly (at least to us) yielding less than 10-year US treasuries at 2.4 per cent. Read more