Financial Markets

Metrics

The Financial Markets team produces daily analysis and forecasts on all regional asset classes, which appear in the following products:

Daily Financial Alert – A daily email product analysing both short and long-term financial market trends, detailing specific trade ideas. This analysis is backed up by an in-depth assessment of economic and political developments across the world and our leading macroeconomic forecasts.

Emerging Markets Monitor – A weekly publication bringing together key global financial market views and developments, also featuring BMI's Sovereign Risk Ratings.

Corporate Financing Week – A weekly publication containing news and analysis on mergers & acquisitions, corporate financing activity and private equity across global markets.

Global Macro Monitor – BMI's flagship monthly publication, contains all our key global macro and financial markets views and forecasts, as well as our key commodity views and forecasts.

Methodology

BMI produces forecasts and specific trade ideas across global asset markets by following a rigorous three-step process:

• Fundamental Analysis
• Technical Analysis
• Sentiment Analysis

The alignment and coherence of each area of analysis has allowed BMI to produce powerful views across global financial markets in recent years, creating a highly credible track record, which can be viewed on our online service.

Our top views form part of The Key Market Views section of the website (which can also be found in the Global Macro Monitor publication), and make up our Mock Portfolio matrix. This is intended to give an immediate perspective on our key financial market views across global markets. Although our analysts produce many views across asset classes, only those adjusted to represent our top three per region are included in the matrix. When a position is closed, either because we are 'taking profit', have hit our target or have hit our stop-loss, we will record it in our 'Closed Views' table - win or lose.

The sovereign risk rating is composed from a country's ability and willingness to service its debt obligations. The 'ability to pay' element is determined by assessing key macro variables, while the 'willingness to pay' element is a subjective assessment of various political risk criteria. The overall rating also comprises of a market element, which reflects whether, in BMI's opinion, the value of the bond is justified by the underlying fundamental outlook.

BMI produces specific short and medium-term forecasts on all liquid currencies, as well as the outlook for the currencies of 180 countries over a 5-10 year horizon.

Complementing the Country Risk and Financial Markets analysis is a Commodities service that provides short-term targets, medium-term forecasts, views and analysis on over 16 key commodities, including oil, industrial and precious metals, softs and grains. The commodities research also includes supply and demand forecasts, supplemented with key inventory analysis.

Team Expertise

This diversity in risk analysis – political, macroeconomic, financial market - is reflected in the varied skill set of the Country Risk team, which is made up of highly skilled analysts. The team boasts a mixture of political scientists, economists, and experienced financial market analysts.