Repercussions following 11 September

The events of 11 September are still causing repercussions in both the economic and political world. In the US, we have seen interest rate cuts and approval from Congress for a $40bn bill to finance the rescue effort, reconstruction and security. In Europe, the European Central Bank (ECB) has cut its rates and we have also seen a reduction by the UK Government. Investors have deserted equity markets for the safer haven of short-dated bonds. Sentiment, which had been moving towards corporate debt, swung back in favour of sovereign bonds and investment grade corporate debt suffered from ...