BAML: As Reserves Fall Rapidly, PBOC May Be Forced To Abandon Yuan Defense

Mark Melin

Published onJanuary 11, 2017

Updated on May 14, 2021

The high yield investment market has been a pillar of strength. Bank of America Merrill Lynch, for instance, notes in a January 11 report that given the deterioration in technical and fundamental factors, the market has held up reasonably well. Based on this strength, BAML is holding to its positive strategic longer term view regarding performance in the asset class. The report does look at other market factors, noting "misplaced faith." But the most ominous warning is likely the one regarding China Reserves.

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China Reserves - Despite headwinds, high yield investment market has gotten off to a strong start in 2017

Coming off relatively dramatic 17.5% annual performance in 2016, the high yield investment market in 2017 “has started off on...

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Mark Melin

Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.

BAML: As Reserves Fall Rapidly, PBOC May Be Forced To Abandon Yuan Defense

China Reserves - Despite headwinds, high yield investment market has gotten off to a strong start in 2017

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