QE may be partly to blame for global market correlations – SNB’s Maechler
Likely other factors at play as well as asset purchases, board member says
Asset prices have become "significantly" more correlated since 2010, which may be partly due to quantitative easing (QE) programmes, Swiss National Bank governing board member Andréa Maechler said on November 17.
By reducing the supply of risk-free assets, QE encourages investors to rebalance their portfolios simultaneously, which "may well" explain some of the co-movement in bonds and equities, Maechler told a conference in Geneva. Nevertheless, another "major reason" is likely to be the
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