Inverted Yield Curve

yield curve recessions forecasting

Introduction Some news outlets in the US have reported that the yield curve for US-government bonds is inverted, or, in other words, the interest rate for bonds with a shorter horizon are now higher than interest rates for US-government bonds with longer maturities. This “inverted yield curve”" is seen as a good predictor for an upcoming recession. For better illustration the interest rates for 2 year, 3 year and 5 year bonds:

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Financial Crisis and the Global Banking Network

financial crisis banking network

Introduction The greek sovereign debt crisis has been going on for nearly a decade and while it’s not making headlines in the news anymore one can safely assume that it had an impact on the european banks. For instance, in 2011 european banks (excluding greek banks) held greek government bonds worth 45.8bn Euros and by 2015 european banks have reduced their exposure to 2.

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