September CMO: Are We Closer to a Recession Post-August?

September 03, 2019

Concern about a global slowdown pushed equity markets lower and caused investors to hide in bonds last month. But as investors piled into bonds, they forced yields down to abnormally low levels and even negative in some countries. In the US, the yield curve inverted, stoking fears that a recession is on the horizon. We think that fear is premature.