The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

Bond Outlook April 30th

The central banks have done a good job on liquidity, but the credit squeeze, the US recession and inflation rather suggest the current calm is the eye of a storm.

Bond Outlook [by bridport & cie, April 30th 2008]

The eye of the storm: a moment of calm before the wind and the rain returns in full force. Is that where the US economy is now? There is a strong case for supposing so:

  • Housing is still in dire straights with falling prices, excess inventory and a bottom to the market two or three years away
  • The announcements of 1st quarter losses by banks on both sides of the Atlantic have been so commonplace that they are now almost ignored
  • Sub-prime losses may have been revealed by banks, but what about pension funds and insurers where transparency is practised less? What of Alt A (mortgages of quality between sub-prime and prime)? As housing prices fall mortgage delinquencies are climbing into better quality mortgages, but Alt A losses have scarcely been reckoned
  • US GDP managed a tiny increase in Q1, but that was due to inventory increases. That will lead to production cuts in Q2
  • Consumer spending is still growing, but at a slowing pace (0.7

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree