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Multi-Asset – CIO Market Update – 23rd Mar 2020

Monday, March 23, 2020

CIO Market Update with Will Bartleet
CIO and multi-asset portfolio manager at Pacific Asset Management

The week started with the news that German Chancellor Merkel has been put into quarantine after contact with a doctor who had later tested positive for COVID-19. Overnight in the US, the Senate failed to pass legislation for economic stimulus after senators disagreed on how to spend the $2 trillion package.

Ahead of Monday’s market opening in the US, the Federal Reserve announced a raft of measures to attempt to counteract the economic impact of the coronavirus, including:

  • The Fed will purchase mortgage-backed securities including commercial mortgage backed securities
  • Provide up to $300 billion in new financing, supporting the flow of credit to employers, consumers, and businesses.
  • Establish of two facilities to support credit to large employers
  • Establishment of a new loan facility to support the flow of credit to consumers and businesses, enabling the issuance of asset-backed securities backed by student loans, auto loans, credit card loans.

The Federal Reserve also stated that it will soon announce the establishment of a Main Street Business Lending Program to support lending to eligible small-and-medium sized businesses.

Gold soared over 3% on the news, whilst the US dollar also rallied.


IMPORTANT INFORMATION: Issued and approved by Pacific Capital Partners Limited, a limited company registered in England and Wales, authorised and regulated by the Financial Conduct Authority. The information contained herein is not approved for use by the public and is only intended for recipients who would be generally classified as investment professionals. Information or opinions contained in this article do not constitute an offer to sell or a solicitation, or offer to buy, any securities or financial instruments or investment advice or any advice or recommendation in respect of such securities or other financial instruments. Where past performance is shown it refers to the past and should not be seen as an indication of future performance.


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