The document discusses the recent turmoil in bond markets, highlighting increased investor risk aversion, high volatility, and widening risk premia. It attributes these issues to central bank actions, concerns about Chinese growth, and idiosyncratic events involving companies like Volkswagen and Glencore. Despite the sell-off, the document suggests that risks are overestimated and sees potential opportunities in the market. It also notes that liquidity might improve in the fourth quarter and that the European Central Bank might expand its quantitative-easing program.
documents/vol00010-efta01458577-pdf.pdf
{"title":"CIO Flash: Bond-market turmoil — specific or systemic risks?","key_people":["Draghi"],"document_date":"2015-10-02","document_type":"correspondence","key_locations":["U.S.","Europe","China"],"document_subtype":"memo","key_organizations":["Deutsche Asset & Wealth Management","U.S. Federal Reserve Board","Bank of Japan","European Central Bank"],"reference_numbers":["DB-SDNY-0118553","SDNY_GM_00264737","EFTA01458577"]}