Bank of England says pension funds were hours from disaster before it intervened

Buses pass in the City of London financial district outside the Royal Exchange near the Bank of England on 2nd July 2021 in London, United Kingdom. Mike Kemp | In Pictures | Getty Images Many LDIs are owned by final salary pension schemes, workplace pension plans popular in the UK that provide a guaranteed annual … Read more

Britain’s shadow banking system is raising serious concerns after bond market storm

Analysts are concerned about a knock-on effect to the UK’s shadow banking sector in the event of a sudden rise in interest rates. Photo by Richard Baker | In Pictures | Getty Images LONDON — After last week’s chaos in British bond markets following the government’s Sep. 23 “mini-budget,” analysts are sounding the alarm on … Read more

Buy this fund with up to 5% returns amid volatile market: strategist

It’s been a volatile year for both stocks and bonds, with major Wall Street indexes just ending their worst month since March 2020, and Treasury yields remaining elevated. For David Dietze, chief investment strategist at Point View Wealth Management, it’s particularly noteworthy that the year has provided “almost no safe haven at all.” That said, … Read more

Markets are plagued by increasing economic uncertainty and geopolitical risk in fourth quarter

Macro uncertainties have spiked as 2022 enters its final stretch, making the outlook for markets even murkier in the fourth quarter than in prior periods.

Record number of UK mortgage deals pulled as market mayhem takes hold

Overall, 935 mortgage products were pulled from the market on Tuesday, according to data from money comparison site Moneyfacts. Photo by Richard Baker | In Pictures | Getty Images LONDON – Hundreds of residential mortgage deal offers in the UK have been pulled after market chaos sparked concerns about base rates rising as high as … Read more

UK lenders halt mortgage deals to customers after market chaos

The British bond and currency markets have been in turmoil since Finance Minister Kwasi Kwarteng announced his “mini-budget” on Friday. Oli Scarff | Getty Images News | Getty Images LONDON – UK lenders Virgin Money, Halifax and Skipton Building Society pulled some of their mortgage deals to customers after the turmoil in British bond markets. … Read more

Fed rate hikes have made some corporate bonds very attractive. How to profit from it

As stocks sink and interest rates rise, investors are getting more excited about corporate bonds than they’ve been in a generation. One side effect of the Federal Reserve’s tightening policy is that it has made interest rates go up everywhere — including in the corporate bond market. But as pros point out, investors need to … Read more

Market rout has muni bonds looking good. How to add them to your portfolio

The recent market turbulence has investors searching for income. For some, municipal bonds may be the answer. The muni market has taken a beating this year, with net weekly inflows into muni mutual and exchange-traded funds negative for most of 2022, according to Refinitiv Lipper data. Yet their yields and tax benefits can make them … Read more

Bond market plunge means the low for stocks is not in yet, Bank of America’s Hartnett says

Pressure in the bond market is also exacting a toll on stocks, which look likely to go still lower from here, according to Bank of America’s top strategist. In normal times, investors seek the safe haven of fixed income when stocks are falling. That means rising bond prices and a corresponding fall in yields. However, … Read more

From the Fed to Europe’s currency crisis, here’s what’s behind this selloff in financial markets

Trader on the floor of the NYSE, June 7, 2022. Source: NYSE Stocks fell sharply, bond yields rose and the dollar strengthened Friday as investors heeded the Federal Reserve’s signal that its battle with inflation could result in much higher interest rates and a recession. The sell-off Friday was global, in a week where the … Read more