Stocks have raced higher to start September, but signs of faltering growth are keeping investors on edge as they navigate what historically has been a turbulent period for markets.
Below, some of the best analysis and insight from WSJ writers and columnists, the Dow Jones Newswires team and occasionally beyond, on investing, the wealth-management business and more.
PLANNING & INVESTING
The Hunt for Yield Could Still Get Fiercer: Investment-grade credit has returned 13% this year, according to the ICE Bank of America Merrill Lynch index, putting it on course for its best performance since 2009—itself a 14-year record.
From Dow Jones Newswires
How Spanish banks will have to compensate clients in case of an adverse ruling is one of the key factors in the IRPH case, UBS says. The European Court of Justice’s advocate-general’s opinion on the use in the past by Spanish banks of certain a method to price mortgages should be published Tuesday, with a final verdict expected in coming months, it says. Tuesday’s opinion is nonbinding. The opinion is in relation to the banks’ use in the past of a benchmark called the Mortgage Loan Reference index, or IRPH in Spanish, to set mortgage interest rates. This method to price mortgages was alternative to Euribor and was based on the mean of mortgage yields sold by lenders. “We contemplate two scenarios… our base case, where IRPH is replaced by Euribor and implies banks pay back the cumulative overpaid interest between both options and a bear case, where the contract is declared invalid and the entire interest payment stream over the life of the mortgage has to be reimbursed, which sizeably escalates the cost for banks,” it says.(email@example.com; @pietrolombard10)
Government bond markets may prove too optimistic about the longevity of Italy’s new government, Gareth Isaac, chief investment officer for EMEA fixed income at Invesco, tells Dow Jones Newswires in an interview. While the political situation in Italy seems to have settled, the coalition between the anti-establishment Five Star Movement and the mainstream Democratic Party is “very unsteady,” he says. “The market is potentially a bit too optimistic as regards the longevity of that coalition,” while there could be less harmony between the two governing parties than the market is pricing in, he says. Risks therefore remain, despite being less than when League leader Matteo Salvini pushed for new elections. (firstname.lastname@example.org)
BUSINESS & PRACTICE
Fracking Buzzwords Evolve, from ‘Ramp Up’ to ‘Capital Discipline’: Shale executives are changing the words they use to talk up their prospects, in a linguistic evolution that broadly reflects the industry’s efforts to shift from prioritizing growth to returning cash to increasingly disillusioned investors.
European Investors Put $34 Billion Into Sustainable Fixed-Income Funds: European investors put $34 billion into fixed-income open-end and exchange-traded funds built with environmental, social and governance criteria over the three years ended June 2019.
How to Have the Inheritance Talk With Older Parents: Retirement columnist Glenn Ruffenach also answers questions on investing and Medicare.
TRAVEL & LIFESTYLE
Wineries Become ‘Disneyland for Adults’ With Submarines, Climbing Walls: Even a fancy restaurant or art gallery isn’t always enough to stand out or attract visitors to wineries these days, especially as many younger vacationers seek out increasingly unique experiences.
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SOURCE: MoneyBeat – Read entire story here.