Tuesday, December 7

Tapering and the Fixed Income Comma

The arrival of the taparing, “the most announced” according to the guest to this episode of closing of the markets of Finanzas.com, centers the interest and the caution of the investors. The day of November 3 took place with all the pending trading floors of the Fed. The market discounted the withdrawal of stimuli and an upcoming rise in interest rates.

The editor in Spain of Morningstar, Fernando Luque, analyzes the situation and “gets wet” to anticipate how fixed income will be from now on. Not without first reducing the intensity of the inflation debate: “central banks are buying time since now the base effect weighs too much.”

Furthermore, “inflation helps correct the serious global debt problem.”

Thanks to the forthcoming decisions of the central banks, the bond market should benefit from an increase in interest rates. Still, Luque doesn’t think it’s time to get into fixed income even through funds.

The expert, in conversation with the director of publications of Grupo ED – editor of finanzas.com-, Ismael García Villarejo, analyzes that, within this range of assets, the best option is through monetary products. In the last minutes of the episode the situation of the dollar is reviewed.

Episode credits

  • Direction: Ismael García Villarejo
  • Production: José Jiménez
  • Realization: Covadonga Lacruz
  • Recorded in Madrid on November 3, 2021