World Perspectives

Inverted Yield Curve and Trade

The yield curve on Treasury bonds inverted during overnight trading, the first time this has occurred since 2007. The spread between three-year and five-year bonds dipped to negative 1.4 basis points, and that between two-year and five-year bonds followed. Each of the last seven recessions was predated by inverted yield curves. However, it is typically the spread between the two-year and 10-year Treasury notes that is generally considered the benchmark yield curve for bonds, which is currently 15 basis points after flattening throughout the year from a peak of 80 basis points. Although it couldn’t be gleaned from this morning’s press stories, an inverted yield curve is not the cause of recessions; it is sometimes a warning sign...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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