The Big Chinese Shock

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Expect The Unexpected! The China Shock

 

The World economy appears to be surprisingly robust, despite the unanimous prediction of upcoming ‘recession’ among economists. What’s more, most financial markets, Treasuries aside, seem to be on-board with the idea of economic recovery. We argue here that the markets are right, but two things have distorted opinion: (1) underestimating China’s monetary easing and (2) ignoring the structural shortage of collateral, which has biased the yield curve.

 

 

 

See our latest published research, Global View: Expect The Unexpected! The China Shock – February 2023

 

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