The Fed and the Taper Tantrum
On December 15, 2021, the Fed announced an accelerated speed for tapering and doubling the pace at which it’s scaling back purchases of Treasuries and mortgage-backed securities to $30 billion a month, putting it on track to conclude the program in early 2022, rather than mid-year as initially planned. Also included in this meeting was an announcement that the rates market should expect increases in the benchmark federal funds rate.
The accelerating inflation, coupled with a rapidly tightening labor market and the behavior of the bond and equity markets post Fed's announcement, had markets price in not one but four interest rate hikes for the year 2022. What was looking to be a quiet start of the year turned in to a series of selloffs that rocked global markets, thanks to the hawkish signal from the Fed.
Join Bloomberg for Education as we evaluate the Fed's actions and, more importantly, discuss the significance of their actions on market players. We will use this data to analyze how Rates and Credit market participants respond to these changes in policies and to derive a prediction of the rates market in 2022.
In this presentation, we will:
- Analyze the impact of the Fed's interest rate policies on the credit and rates markets
- Use the Terminal to monitor yield curve changes, and interest rate hike probabilities
- Examine the shift in the rates and credit market around IBOR cessation
- Use Bloomberg Query Language to extract aggregated data to analyze credit and rates markets
- Share a takeaway assignment to practice what you've learned on the Terminal
The accelerating inflation, coupled with a rapidly tightening labor market and the behavior of the bond and equity markets post Fed's announcement, had markets price in not one but four interest rate hikes for the year 2022. What was looking to be a quiet start of the year turned in to a series of selloffs that rocked global markets, thanks to the hawkish signal from the Fed.
Join Bloomberg for Education as we evaluate the Fed's actions and, more importantly, discuss the significance of their actions on market players. We will use this data to analyze how Rates and Credit market participants respond to these changes in policies and to derive a prediction of the rates market in 2022.
In this presentation, we will:
- Analyze the impact of the Fed's interest rate policies on the credit and rates markets
- Use the Terminal to monitor yield curve changes, and interest rate hike probabilities
- Examine the shift in the rates and credit market around IBOR cessation
- Use Bloomberg Query Language to extract aggregated data to analyze credit and rates markets
- Share a takeaway assignment to practice what you've learned on the Terminal
Speakers
Faizan Chaudhry
Rates and Derivatives Specialist
Bloomberg L.P.
Faizan is a Rates and Derivatives Market Specialist at Bloomberg based in the New York Office. Faizan transitioned into his role after having worked in Bloomberg Analytics in various capacities, including leading all efforts of Bloomberg Query Language and BQNT adoption in the Americas. Faizan leveraged his technical expertise in query languages and comfort with coding to spearhead conversations with sophisticated Bloomberg clients leveraging risk APIs to monitor their day-to-day risk. Faizan studied Finance and Film Production at the University of Richmond.