Bond Market (Fixed Income) Current Event

The purpose of these exercises will be to discuss a recent event(within the prior few weeks or so) that has taken place in the financial markets and what the implications are to the fixed income markets as a whole or to a particular sector.

There is a plethora of data that comes out on a daily basis, any of which has the potential to provide you with the sufficient observations to complete the assignment. Obviously the greatest impetus for market movement is when news comes out that is unexpected. It is these situations that will provide you with the most material covering the event and the subsequent market reactions. Some of these events may be, but are not limited to:

Fed Action/Comments (Easing, Tightening, No change)

Release of economic data (MONTLHY PAYROLLS, INLFATION MEASURES)

Corporate activity (LBOs, Takeovers, Buybacks)

Legal Changes (Congress)

Each of these write ups (2-3 pages double spaced) will be graded based on the writers display of the understanding what took place and what were the main areas affected by the given event. Supporting references can and should accompany but it should be kept your own words as much as possible.

Solution Preview

The Global Financial Markets
As times are changing, so are the financial markets. These markets refer to the marketplace where both buyers and sellers participate in the trade of assets. Tools in the financial markets include bonds, derivatives, currencies and equities (Kidwell, Blackwell, Sias & Whidbee, 2016).

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