Whereas the US Federal Reserve determined to carry rates of interest at its November assembly, they continue to be at their highest degree since properly earlier than the worldwide monetary disaster (GFC) of 2008-09. The Federal Funds charge stands at 5.25-5.5%, much like the UK’s 5.25%, whereas within the European Union it’s at a report excessive of 4%.
That is being pushed by excessive inflation, which stays sticky all through the developed Western world. It’s so sticky that some, together with Citadel’s Ken Griffin, are predicting it would grasp round for a decade or extra. As such, central banks are actually musing on increased charges which will last more.
Lucas Kiely is the chief funding officer for Yield App, the place he oversees funding portfolio allocations and leads the enlargement of a diversified funding product vary. He was beforehand the chief funding officer at Diginex Asset Administration, and a senior dealer and managing director at Credit score Suisse in Hong Kong, the place he managed QIS and Structured Derivatives buying and selling. He was additionally the pinnacle of unique derivatives at UBS in Australia.
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