Stephen Gallagher, head of research at Societe Generale and his team are out with their market and economic outlook for the third quarter.The presentation gives us a great run through of their take on the U.S. economy and the fiscal cliff; their rate strategy; commodity and Forex outlook.
Where is crude oil heading? What’s going on with global currencies? And what can we expect from the extension of Operation Twist?
Note: Thanks to Societe Generale for giving us permission to feature their presentation.
The maturity extension program (MEP) more popularly known as Operation Twist is projected to see an unchanged momentum in Fed's system open market account (SOMA) holdings
Note: MEP refers to maturity extension program, more popularly known as Operation Twist
Fed already owns over 50% of outstanding float of some securities and it will be harder for the Fed to increase holding amounts
Note: MEP refers to maturity extension program, more popularly known as Operation Twist. The Fed's SOMA holdings refer to the System Open Market Account.
Note: DJUBS refers to the Dow Jones-UBS Commodity Index, a diversified index that allows investors to track commodity futures through a single measure.