While April started well, buoyed by a smorgasbord of central bank easing around the world (and promises, promises from the rest), it ended on a decidedly ugly note both in the US and abroad. However, Chinese and Russian stocks topped the list YTD while Greece, Corn, and Wheat languish at the bottom... However, as Deutsche Bank's Jim Reid explains, April proved to be a better month for assets than it felt as we closed the book on it.
Four days back, the Royal Bank of Canada received the $1-billion in gross proceeds from the country’s first offering of Basel-111 compliant subordinated notes.
Known as non-viable contingent capital (or NVCC) the notes will pay a fixed rate of 3.04% for the first five years; after that the notes will pay a floating rate of interest — though the expectation is that the notes will be called by RBC after five years.
Paul Krugman: Correlation, Causality, and Casuistry: "One last thing: even if you take Dube’s forward-looking regression as a causal relationship, which you shouldn’t, notice how weak that relationship is in the relevant range. It looks as if raising debt from 50 to 150 percent of GDP, other things equal, reduces growth by around 0.1 percentage point over the next three years.