A Template For Understanding What’s Going On Less than two months after the Lehman bankruptcy, amid continued extreme market volatility and ongoing attempts by policy makers at the Federal Reserve and the Treasury to control the crisis, we took a step back to provide perspective on the economic...
High-yield savings accountsoffer higher annual percentage yields (APY) than traditional savings accounts but may have minimums and limit holders to six withdrawals per year before charging fees. Certificates of Deposits, known as CDs, may be bought for higher interest-earning ability than bank savin...
A central piece of the retirement planning puzzle is understanding how your current and future savings are likely to evolve over time. But because different people might have very different portfolios there isn’t a good one-size-fits-all assumption you can make about future market returns. In ...
“The proposal would not drive interbank loan rates significantly negative, as banks could always exchange ERs for T-bills. And T-bill yields could not go significantly negative because non-bank holders of T-bills can always hold cash.” As a small aside, I’m puzzled why he would think m...
Although the bond market is also volatile, lower-quality debt securities including leveraged loans generally offer higher yields compared to investment grade securities, but also involve greater risk of default or price changes. Foreign markets can be more volatile than U.S. markets due to increased...