Risk Update – September 2019

Ever lower interest rates is the answer. Nobody seems to know, or care, what the question is. Both the Federal Reserve and the ECB dialled up their monetary easing in the month of September with rate cuts and renewed balance sheet expansion, with seemingly little concern for the success of such policies to this point. Whatever it is / was that they hoped to achieve from years of unprecedented monetary extremes, they apparently have yet to achieve it. Their only answer is simply more of the same. We have discussed before the concept of the “Reversal Rate”. The concept that…