Bond market activity may be more pronounced today, and for the next few weeks, due to ripple effects from the Greece and Puerto Rico financial crises.
Today will be a stressful day for the markets and our clients. Lenders did not reach an agreement with the Greek government. In response, capital controls were imposed leaving Greek banks and financial markets closed today. Asian markets are in turmoil, and China’s central bank is already easing capital requirements to provide some room for Puerto Rico banks to maneuver assets and lending to add liquidity. Asian market drops usually translate to temporary U.S. stock, bond price, and interest rate volatility. In addition, Puerto Rico’s Governor Alejandro Garcia Padilla’s statement that the Commonwealth cannot pay back its $72 billion in debt, with $234 million in payments due in the next month, will also have far-reaching repercussions. The end-of-quarter timing exacerbates the issue, as managers frequently make adjustments to their portfolios in the final few days for various reasons.
In times like these, your portfolio management tools become increasingly important for navigating market reactions to global events. One tool our clients should not overlook is Investortools’ Client Services department. Access to a dedicated Client Relationship Manager is included with your subscription. If you would like help creating a specific analysis or exploring what features are available to help you respond to global events, we encourage you to call us. We can help.
Mark Bradford
Vice President, Client Services
Investortools
Dan Garrett
Vice President, Sales
Investortools
