MBS Day Ahead: Who's Lying?
Posted To: MBS Commentary
Coronavirus has made for some of the biggest market movement and volatility in the history of financial markets. It's also resulted in a wide range of predictions about the future of the economy. There's good reason for this, to be sure. If there was ever an event that forced us to consider extreme market movement, the largest, most immediate, most coordinated global economic shock certainly fits the bill. It's the kind of thing that's so large and compelling that no one would question the initial move in stocks and bonds. In other words, with the biggest jump in unemployment ever seen, and with pretty much every other developed economy in the same position, it was only fair that stocks and bond yields would have to decline precipitously. But how do we accurately measure the…(read more)