How much longer will central bank policies continue to distort markets?

The behaviours of the Federal Reserve and the European Central Bank in recent months could not have been more different and are becoming harder and harder to anticipate, says Eric Vanraes, fixed income portfolio manager at EI Sturdza Investment Funds

Fixed income markets started 2015 with much uncertainty. In Europe, growth is weak, deflation is threatening, and Greece is - once again - a source of risk and volatility. As anticipated, the European Central Bank (ECB) finally unveiled its quantitative easing (QE) purchasing program this month, In the US, all eyes are on the Federal Reserve after the end of its QE programme in October. Sooner or later, the Fed should abandon its zero rate policy, although apparently the majority of its members still advocate ‘patience'. This month, the Fed once again signalled renewed caution on its pat...