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In response to the COVID-19 pandemic, the Fed has announced sweeping conventional and unconventional actions. Based on the uptake in the Fed offerings to date and our expectations for the path economic activity, the Fed’s balance sheet is poised to rapidly increase to around $8Tn, before stabilizing around that level.

Tweaks to Fed balance sheet strategy and operational framework. Fed to reach terminal balance level in 2019. New principled approach not without risks.

Capital continued to flows toward Global Investment Funds (GIF), albeit at a slower pace, driven by common factors (high global liquidity, subdued US interest rates among others). Over the coming quarters, inflows to GIF shall cool down as the …

Three important external determinants of sovereign spreads in emerging countries are reviewed: balance sheet effects, global risk aversion and contagion.