SICO BSC (c), a leading regional asset manager, broker, and investment bank (licensed as
a wholesale bank by the CBB), highlighted in a recent note to investors the challenges facing
emerging and GCC capital markets posed by high inflation and an aggressive US Federal
Reserve rate hike schedule.
US Treasury yields surged by an average of 160 basis points this year, with market
participants pricing in as much as 8.5 rate hikes for 2022, according to Fed Fund Futures.
Rate hikes are driven by fears of rising inflation that reached its highest level in over 40 years
at 8.5%, which in turn brought global bond prices down by 11.3%, according to the Bloomberg
Global Aggregate Bond Index.
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