Yuan Tag

Keep an Eye on the Yuan & Corporate Spreads

28 May, by Steven Vannelli, CFA in Economy, Markets

Since the March 23, 2020 low, when the Federal Reserve announced basically unlimited liquidity via a variety of programs, corporate spreads have narrowed, and the stock market has risen substantially. In the chart below, I overlay US investment grade spreads over the S&P 500 Index. The...

Yuan Continues its Slide and China not Doing Much to Stop it

25 Oct, by Bryce Coward, CFA in Economy, Markets

Over the last several weeks Eric has been exploring the implications of a further decline in the yuan here and here, and the falling yuan was also a big part of our recent quarterly. A falling yuan is associated with a dampening of economic activity outside of China...

What is the Path of Least Resistance for the RMB?

27 Jul, by Bryce Coward, CFA in Markets

As we have and will continue to discuss on this blog, the level of the RMB has been a major driver of market moves ever since it began its depreciation trajectory at the beginning of 2014. We will further make the case as to why...

Is the Chinese Yuan Undervalued or Overvalued?

16 Aug, by Bryce Coward, CFA in Economy, Markets

Almost all of the recent analysis surrounding China's recent currency fluctuation takes for granted that China just joined the global currency war by engaging in competitive devaluation in an effort to spur exports and thus growth. We offer a different take, that the recent move that...