Trump’s mid-term report

If only it were that simple…

One would think that corporate borrowers ought to be champing at the bit in order to get a deal away. If only because many fear that the ECB’s QE stimulus withdrawal at year-end will necessarily result in higher funding costs. It’s not that simple because the Eurozone economy is slowing and that might put the brakes on rising rates (or at least slow the pace), while economic weakness might reduce the allure of equities and keep the cash tucked away in the corporate bond market. It’s an argument on relative asset valuations that has been fleshed out many times over the past few years.

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