Interest rates in the key currency blocs ndash usd eur gbp, Ask an Expert

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Interest Rates in the key currency blocs – USD, EUR, GBP, JPY – along with related currencies (CHF, SEK, DKK etc) are historically low. Both short-term rates (Libor) and long-term bond rates are very low. Actually, a lot of fixed rate investments (bonds) trade at negative interest rates.

a. What may be reasons for this situation? Limit yourself to stating 3 reasons. Give a very short rationale for each (1 or 2 sentences).

b. How is this low or even negative interest rate environment impacting the market for financial derivatives particularly for interest rates, stocks and foreign exchange?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92414974

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