A rush to safety amid a massive drop in stocks has stretched prices for haven as...
NEW YORK - A rush to safety amid a massive drop in stocks has stretched prices for haven assets, leaving investors fewer places to hide in the wake of a freshly-minted bear market.
That avalanche of buying has skewed the normal trading patterns of many haven assets, leaving investors vulnerable to unexpected price swings and periods of illiquidity, adding an extra dimension of risk to a market already fraught with pitfalls. Meanwhile, liquidity in the $17 trillion Treasuries market has deteriorated to its worst levels since the financial crisis, traders said. Some market participants have in recent days complained of being unable to get a satisfactory market price, a result of too many buyers and not enough sellers.
At the same time, a sustained rise in the Japanese currency could leave it near levels that could prompt the Bank of Japan to curb its strength, some analysts believe. A strong currency tends to make a country’s exports less competitive abroad, an outcome Japan’s struggling economy can ill afford. Damien Bisserier, partner at Advanced Research Investment Solutions, believes the wild fluctuations in Treasuries and other haven assets will eventually subside.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin has tanked 50% in just 2 days amid coronavirus market panic - Business InsiderThe popular digital coin is losing some of its appeal as a safe-haven asset during its epic sell-off.
Read more »
Investors prepare for more market swings as virus spreads in the U.S.With one of Wall Street's wildest weeks in recent memory now in the history...
Read more »
Coronavirus live updates: Mobile testing starts in New Rochelle, more schools closeHELPING HAND: Youth volunteers packed boxes of food for South Koreans in self-quarantine during the coronavirus outbreak. For the first time since the outbreak started, the country has reported more recoveries than infections.
Read more »
How to Run Safely Amid Coronavirus ConcernsWe've got answers to your most frequently asked questions as the virus continues to spread. Covid_19 coronavirus
Read more »
Virus OutbreakBREAKING: Speaker Nancy Pelosi says deal reached with Trump administration on emergency aid package for coronavirus.
Read more »