The United States could run out of money to meet its obligations in less than a month. This isn’t due to economic problems: the country is in a solvent position and there aren’t any non-payment precedents on record, but political polarization has caused the negotiation of the debt ceiling, which was previously considered almost merely an administrative process, to lead the country to the precipice of default.
The banking sector situation is putting central banks between a rock and a hard place, given the current divergence between economic and financial stability. This is adding to the cumulative effect of monetary policy and the response lag, as well as uncertainty relating to the performance of risk, as MAPFRE Economics explains in a recent report.
The banking sector has experienced another weekend of tensions, with the collapse of First Republic, but these problems "can hardly be extended to economy".
Uncertainty has been the only certainty in recent years, so MAPFRE Economics, MAPFRE’s research arm, always envisages two different scenarios in its forecasts in order to adapt to economic developments in the subsequent months.
Socially responsible investing does not mean you have to sacrifice financial returns, and the MAPFRE AM Good Governance fund is the perfect example of this. So much so that Morningstar has decided to award it five stars, the highest rating given by the analysis firm.
The earnings delivered by financial institutions in the first quarter are not being well received by the markets, due to the ongoing banking crisis in the United States.
MAPFRE AM has not rotated portfolios despite the latest turbulence. Moreover, these already had a more quality and defensive vs. cyclical bias a couple of months ago.
MAPFRE Gestión Patrimonial brought together a group of investors in Madrid, at the headquarters of Fundación MAPFRE, to discuss the opportunities and risks of this asset class, with the participation of Daniel Sancho, head of investments at MGP, and Ismael García Puente, fund manager and fund selector.
The crisis of confidence triggered first by the collapse of Sillicon Valley Bank and the Credit Suisse crisis has caused high volatility in the market, even though results will be good in the first half of the year.