January 16, 2020 - Coronation Merchant Bank

January 16, 2020
T-bills yields crash, equities surge
If risk-free asset yields are driven low enough for long enough (and T-bill rates has been falling since October), then risk assets will gain in popularity. The equity market is booming, rather too quickly for our new Model Equity Portfolio to catch up (see page 3). On page 2 we examine the curious divergence of …
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January 16, 2020
Year Ahead 2020: Re-risking the financial system
Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production. Oil price volatility was reduced in 2019 and prices (Brent) held up above US$60.00/bbl most of the time. With further OPEC cuts announced last December, we think 2020 may …
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