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China’s New Year’s Resolution: Deleveraging

China’s New Year’s Resolution: Deleveraging

As we kick off 2017, constructive, though prudent, economic reform is likely to hold precedent over all other New Year’s resolutions for the world’s second largest economy. Despite China’s efforts to quell the substantial growth of its shadow banking sector in the beginning of 2015, the industry has bloated to take hold of a fifth...
Optimistic Saudi Bond Pricing Portends Rocky Future

Optimistic Saudi Bond Pricing Portends Rocky Future

After oil plummeted from prices of 100 USD to record lows below 30 USD, the Saudi Arabian government is wary of being left with 70 years worth of oil reserves, as this could render the sovereign country dead in the water. Bearing the heavy shackles of oil prices would sink the heavily oil-dependent country into...
Struggling to Switch Gears, China Stalls

Struggling to Switch Gears, China Stalls

Following the financial crisis of 2008, the global superpowers adopted near-zero interest rates and currency devaluation in hopes that these would rev up their economies. Lower interest rates boost investment and weaker currencies increase exports— like giving a little gas when attempting to jumpstart your car. As the value for one currency decreases, however, others...