Economic Conditions
Insights into Current Economic Conditions, Emerging Trends, and Impacts on US and Global Economies
2021 Economic and Investment Outlook: Investing When Decades Happen in Weeks
Learn MoreKey Questions: What Does the Crisis in Texas say About Energy Markets?
In our November 30, 2020 edition of Key Questions titled, "What Surprises Might 2021 Have for Us?," we said the following: "Crude oil exits 2021 above $60 per barrel, and Energy is the best performing sector in the S&P 500 Index. With the global economy set to rebound sharply once vaccines become available, it becomes apparent to market participants just how much damage was done to US upstream production capabilities. Demand increases significantly, and the slow reaction function of producers causes prices to rise more than the consensus expects. Equity investors who have shunned the Energy sector are forced to chase performance, further driving rotation into Cyclicals."
Preparing for the LIBOR Transition
Fundamental change is coming to the floating rate loan market. After more than 40 years, the London Interbank Offered Rate or LIBOR – the benchmark index by which major global banks lend to one another – is being phased out by the end of 2021.
Building growth in difficult times
Equipment acquisition during economic uncertainty
Additional Topics & Insights on the Economic Conditions
Key Questions: What Causes Bubbles To Burst?
In prior essays, we described how certain conditions that existed during periods in which asset bubbles were created are again apparent. Of these conditions, there are three that commonly surfaced: Interest rates were at or near zero; central banks assured the markets that interest rates would remain low for an extended period, forcing investors out on the risk curve; and an abundance of liquidity. These circumstances are evident today.
Key Investment Perspectives: February 2021
The world’s attention in the opening month of 2021 was riveted on the January 6 storming of the US Capitol and the presence of thousands of National Guardsmen in Washington for the Biden-Harris inauguration.
Key Questions: Are Long-Term Interest Rates Heading Higher?
Since the start of January, the 10-year US Treasury note yield has climbed 25 basis points to 1.16%. With short-term US Treasury yields anchored by the near-zero federal funds rate and limited volatility in the intermediate maturities due to the Federal Reserve’s (Fed) Treasury purchases, fluctuations in long-term interest rates will drive changes in the shape of the Treasury yield curve.
KeyBanc Capital Markets Industrial Forum: Preparing For & Executing a Liquidity Event
KeyBanc Capital Markets invites you to to listen to our Industrial Forum discussion, Preparing for & Executing a Liquidity Event. In today's market, many private business owners are contemplating growth capital to inject into their business and/or the opportunity to monetize the significant value they and their employees have created.
Key Questions: Is GameStop’s Rise "Game Over" for the Stock Market?
Last week, we addressed the question, "Is the Federal Reserve fueling a stock market bubble?." In it, we discussed how ultra-low interest rates – and assurances from the Fed that they would remain very low for a long time – have incentivized investors to move out the risk curve to generate a reasonable rate of return.
The future of seniors housing: a 2021 outlook from a capital markets perspective
The unique challenges of a global public health crisis put significant stress on seniors housing operators and owners in 2020 that may take years to fully recover. Learn more from our experts. Learn More.
Your Business Is Our Priority: Information on COVID-19
The financial landscape is changing by the hour but what has remained constant throughout this period of economic turmoil is our commitment to you.