Discover and read the best of Twitter Threads about #yieldscarcity
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Under normal circumstances, the #economy might be said to resemble a Newton’s cradle, with moderate and somewhat predictable feedback loops reverberating through #policy actions, the #financial economy and the real economy; resulting in a system of reasonable equilibrium. 
Over the past few months, however, as the #coronavirus pandemic encircled the globe and drastic responses to it got underway, this regular dynamic was thrown into disarray, crushing the real #economy and the #capital stack, and sending #volatility to dramatic heights.
Recent months witnessed three key central bankers; #Powell, #Draghi and #Kuroda set off a renewed policy easing cycle, as various global growth risks have resulted in rates and spreads today close to post-crisis lows.
From an #investment standpoint, this creates further #yieldscarcity, as any reasonable yielding asset now faces tremendous demand and a more limited relative available supply.
Still, though it presents some added challenges for #investors seeking yield, or those attempting to match long-term liabilities, this policy easing is justified by the #economic weakening seen across the globe.
