Christopher Jeffery

Fixed Income Strategist

Chris is a strategist with a focus on fixed income and systematic dynamic strategies. He joined the team from a similar role at BNP Paribas, having started his career at the Bank of England. When not strategising about bonds, he has an enthusiasm for running, golf and (inexplicably) gardening. A lot of market strategists like to talk rhubarb, Chris prefers to grow it.

Posts by Christopher Jeffery

Strategy

Bearish bias on bonds binned

A sell-off in the US government debt market has whetted our appetite for an asset that more and more investors now love to hate. Tactically we have adjusted our view from underweight to neutral.

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Strategy

Eureka: the Archimedes principle

Is there an Archimedes principle at play in financial markets? As central banks withdraw liquidity by shrinking their asset holdings, does it inevitably imply bad news for investors? We look to theoretical, historical and contemporary clues to find out.

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Macrobites

Monetary mayhem in the policy petri dish

The Hong Kong dollar is tied closely to the US dollar. Monetary policy made in Washington therefore applies directly in Wan Chai and Kowloon. In recent months, the Hong Kong Monetary Authority has been obliged to shrink its balance sheet rapidly to maintain the fixed exchange rate. This serves as a real-life policy experiment of the effects of quantitative tightening in a financial system. So far, nothing has blown up, but Hong Kong equities have been under pressure as financial conditions have tightened.

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Macrobites

Italy: too big to fail, too big to bail

 

Political risk is back with a vengeance in Italy. As the third largest global issuer of government bonds after the US and Japan, the country is too big to be allowed to fail without severe contagion to the global financial system. However, it is also too big to bail out comfortably using tried and tested mechanisms.

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