From pillar to post – investors feeling the pain

Pendal Group

Weak commodity and oil prices are putting pressure on mining and energy company profits. This, in turn, raises questions about their ability to repay creditors; hence the spike in high-yield credit spreads and the concern around banks – particularly European banks. On its own, this issue would concern investors. However in this instance it has been tossed into a market already skittish over the potential for policy mis-step, on two fronts: will there be a hard landing in China (worsened by capital outflows), and can the Fed embark on a tightening cycle without tipping the economy into recession? (VIEW LINK)


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