Korea Funding Company (KIC) introduced on Dec. 19 that it held the twenty fifth “New York Korean Finance Discussion board” at The Korea Society in New York on Dec. 18 (native time), organized by its New York workplace.
The discussion board was attended by roughly 30 members, together with the Deputy Consul Common from the Consulate Common in New York, together with funding officers from authorities businesses, public funding establishments, securities corporations, banks, and insurance coverage corporations.
Ian Lyngen, Head of US Curiosity Price Technique at BMO Capital Markets, who delivered the presentation, forecasted that US rates of interest could decline subsequent 12 months as instability within the US employment market continues.
“Current US unemployment charges have reached their highest ranges since 2021, and layoff indicators are rising to ranges seen throughout previous financial recessions,” he stated. “The Federal Reserve will proceed to chop rates of interest subsequent 12 months based mostly on the slowdown within the employment market.” He additional predicted, “US Treasury charges will decline throughout most maturities by the tip of subsequent 12 months, however the yield curve will steadily steepen as time period premiums broaden.”
Which means that long-term US Treasuries could expertise smaller rate of interest declines in comparison with short-term securities, doubtlessly widening the unfold between long-term and short-term charges. BMO Capital Markets is a subsidiary of Financial institution of Montreal (BMO), a Canadian monetary establishment that gives complete monetary companies together with funding banking, capital elevating, advisory companies, and threat administration.
Lee Kyung-taek, Head of Korea Funding Company’s New York workplace, who organized the occasion, stated, “This was a helpful event the place we forecasted subsequent 12 months’s US Treasury market forward of the Federal Reserve management transition and mentioned key points within the monetary trade in depth. We’ll proceed to offer numerous alternatives to assist Korean institutional traders in establishing long-term funding methods and understanding US macromarket developments.”
