Takeaways: A new era awaits. The Fed’s final QE hurrah was flagged, but we expect more market discretion, volatility, disruption and currency oscillation without this safety net. The cost of debt capital will rise. Weaker/exposed nations and companies can expect a rougher ride. Brazil and Turkey look exposed. AQR ran just about to script, but … More New era in capital after (US) QE and AQR draws a line.
Risk off Markets are in ‘risk-off’ mode. Weak surveys highlight the continuing struggles of the Eurozone to grow at all and of China to grow enough to meet its targets without blowing bubbles. Meanwhile, Eurozone banks have largely eschewed the ECB’s offer of cheap cash for lending for now – they may pick up more after … More All change! UK break-up & HY wake-up ?