Prospect Of U.S. Fed Hike & its Effect On Asian Assets [Part I]

Prospect Of U.S. Fed Hike & its Effect On Asian Assets, Part I Gerald M. Hwang, CFA, Matthews Asia

How close are we to a U.S. Federal Reserve (Fed) rate hike? How would a hike affect Asian securities? These are the questions we explore in this two-part series of Asia Insight.

A cohesive framework for understanding what drives a rate hike is useful for us not because it allows us to trade around such an event, but because the analysis lends insight into how best to position portfolios over the long run. In this issue, we use a model of the U.S. federal funds rate to consider the timing and pre-conditions for an eventual rate hike. Part II of...