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Stock impact report

Credit risk not interest rates sparked equity rotation, Citi says [Yahoo! Finance]

Venus Concept Inc. (VERO) 
Last venus concept inc. earnings: 3/30 04:05 pm Check Earnings Report
Company Research Source: Yahoo! Finance
now the primary concern for investors and the likely reason for the latest equity market rotation, according to analysts at Citi. Value, especially deep value on a price-to-book ratio, outperformed most in July, but reversed most since Aug. 1., while low risk and quality posted best returns in August month to date. The reversal or underperformance came in the wake of a jump in implied and actual credit spreads - the difference between the yield on a corporate bond and a Treasury of the same maturity - since late July while the implied 10-year yield barely moved. "This clearly indicates that credit has become the key risk concern for equity investors," Citi added. Among the four key macro drivers of equity markets including credit, interest rates, the U.S. dollar, and oil prices, credit "is the main dimension in which both the implied and underlying macro factors both jumped up significantly since late July in a synchronized fashion," Citi said. The roughly unchanged equity imp Show less Read more
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