We think that the curve will stay flat but we're going to creep up towards 5% and that these rate increases will now start feeding through to equity markets.
Drip-feeding equity as needed avoids the appearance of nationalisation.
Expectations of weak global growth and ever-enduring easy monetary policy, likely to be reinforced at central bank meeting this week, is seeing a mass exit from equities and feeding demand for bonds, sending yields to record lows".
That feeds back to equity gains and on the cycle goes.
Fairly or not, it seemed to feed into private equity's reputation as mere "flippers" that add little real value.
While companies have reason to merge, JP Morgan also expects private equity deals to keep feeding through.
Feeding on big discounts, they will buy the equity and debt of companies their brethren helped get into trouble.
Not only did it have to deal with the technical problems of combining data feeds from fixed-income, equity, commodities and other markets, it also had to consolidate billing and accounting practices.
Uncle Sam has already fed Citi $45 billion in equity and $300 billion in asset guarantees.
The activities of monetary and other financial institutions include taking deposits from individuals or institutions and feeding them into funds (e.g. pension funds, unit trusts) or firms in the form of equity institutions (e.g. venture capital, private equity, hedge funds, investment banks) (European Central Bank, 2015).
The dramatic rise in equities was fed by a sharp increase in margin trading, in which stocks are bought with borrowed money, and millions of new retail investors.
