EFGAM

Investors holding out for a monetary policy hero will have to keep holding out. And as regulators put out spot fires in the global banking system, they’ll need to reckon with the new behemoths they’ve made.

Tidbits of good news will send equity markets soaring in the short-term. But the longer-dated fear is that central banks will be forced to respond to a financial accident without having dispatched the inflation genie.

Year-to-date, fixed income markets are about as bad as equities. But Michael Leithead, fixed income and senior portfolio manager at EFG Asset Management (EFGAM), is more positive than he’s been “in a long time.”