Markets always send the signal of risk or euphoria first, either by launching or shrinking bond spreads respectively and long before rating agencies start one by one and slowly downgrade the credit rating of the country which is under consideration. It is common for Big-Four Rating Companies – Fitch Ratings, Moody’s, Standard & Poor’s, DBRS …
Category: Financial Markets
The Rise of Chinese Stock Markets and the Risk of a New “Bubble”
The fact that the Chinese economy came out very quickly from the spread of the pandemic and in particular in the first three months of 2020, managing to revoke all the imposed measures of lockdown and social isolation, justifies as a point the ever-increasing expectations of investors to invest in China, despite the well-known pathologies …
The low interest rates, their consequences & the returns of assets as an investment selection criterion
In EU member countries (e.g. Denmark, Germany) commercial banks are proceeding to mortgage loans with a negative lending rate. In other words, these banks grant discounted housing loans to borrowers and since the repayment of the mortgage loan not only will not be paid interest, but the borrower will repay capital in total less than …