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Santa Brings a Christmas Crash

?December saw risk assets post further losses across equities, credit and most commodities.
Narrow Road Capital is a credit manager with a track record of higher returns and lowers fees on Australian credit investments. Clients include institutions, not for profits and family offices. Narrow Road Capital’s offices are in Sydney.
Narrow Road Capital is a credit manager with a track record of higher returns and lowers fees on Australian credit investments. Clients include institutions, not for profits and family offices. Narrow Road Capital’s offices are in Sydney.

December saw risk assets post further losses across equities, credit and most commodities. The heaviest losses for equities were in Japan (-10.5%), the US (-9.2%), Europe (-5.4%), China (-5.1%) and emerging markets (-2.8%) as Australia (-0.4%) escaped largely unscathed. Investment grade and high yield credit spreads pushed higher again, with high yield issuance falling off a cliff as markets are adjusting to a very different risk appetite from buyers.

The biggest losers in commodities were US natural gas (-36.5%), US oil (-10.3%) and copper (-5.7%) but iron ore (13.4%) bucked the trend. The safe haven assets of gold (5.0%) and government bonds both rose with long term bond yields falling in the US, Europe, Japan and Australia.