Interest Rates and Energy: The Highs and Lows of Year-End

Interest rates, the high-yield market, collapsing energy and commodity markets – it seems like the markets couldn't resist a last hurrah before closing out 2015. Are these events signaling a potential crisis? This month, we assess the market events of the recent weeks and talk about "The Highs and Lows of Year-End".

  • Fixed income market stress is unlikely a sign of a 2008-type crisis. Collapse in high-yield caused by price fall in energy and commodities.
  • Weakness in energy and commodity markets, combined with Paris climate accords, could lead to a positive real-world shift: greater efficiencies and lower costs.
  • In the short-term, market turmoil and rising rates might rattle investors, but negative effects on portfolios may be offset by a boost to consumer spending and a tailwind for companies, equities, and the global economic system.

Be sure to watch the video where we uncover the positives from the current volatility, and download the presentation for the key points in this month's piece.