What’s Behind China’s Interest Rate Cut?

What’s Behind China’s Interest Rate Cut?

Last Friday, the People’s Bank of China announced an asymmetrical rate cut of 25 and 40 basis points (bps) for the benchmark deposit and lending rates, respectively, effective starting Nov. 22, 2014.1

Specifically,

•The one-year deposit rate was cut to 2.75% from 3%.1

•The one-year lending rate was cut to 5.6% from 6%.1

•The ceiling of the one-year deposit rate was lifted from 1.1x to 1.2x benchmark deposit rates.1

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Despite Differences, ASEAN Markets Offer Immense Potential

Despite Differences, ASEAN Markets Offer Immense Potential

The Association of Southeast Asian Nations (ASEAN) economies—represented mainly by Indonesia, Thailand, Malaysia, Singapore and the Philippines — are at vastly different stages of development. However, we believe all share immense growth potential.

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Worried About Year-End Capital Gains Taxes? ETFs May Help

Worried About Year-End Capital Gains Taxes? ETFs May Help

This is the time of year when asset managers announce year-end capital gains distribution estimates for their funds. Capital gains are generated when funds sell their holdings at a profit. Due to the solid performance of the markets this year, some investors may find their tax liabilities have grown along with their portfolio balance — even if they haven’t sold their investments.

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Taking Stock of Preferreds After QE

Taking Stock of Preferreds After QE

With the Federal Reserve (Fed) ending its third and final round of quantitative easing (QE) in October, investors are trying to assess the impact on income-producing asset classes. While the complete effect of Fed policy normalization remains to be seen, the end of its asset purchases effectively eliminates the downward pressure that balance-sheet growth has put on rates.

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Three Reasons Why MLPs Can Withstand Oil at $80 — or Less

Three Reasons Why MLPs Can Withstand Oil at $80 — or Less

October was a difficult month for master limited partnerships (MLPs) due to a steep drop in oil prices. However, despite the short-term volatility, the long-term outlook for MLPs should remain solid for three main reasons:

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Passing the Baton: Can Central Banks Transfer Credit Creation to Commercial Banks?

Passing the Baton: Can Central Banks Transfer Credit Creation to Commercial Banks?

After several iterations of quantitative easing (QE) programs in developed markets, passing the credit creation baton from central banks to commercial banks is the next step required for sustainable recovery. The key question is simple: Are central banks ready for the handover to commercial banks?  But the answer is less so. A closer look at the design of QE programs in the US, eurozone and Japan offers insight into their varying degrees of readiness — or unreadiness — to pass the baton.

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