Archive for May, 2012

May 2012

May 31, 2012  |   Monthly Commentary   |     |   0 Comment

Risk aversion returned to the capital markets last month, as investors struggled to understand the fate of European monetary union. The fear was most evident in the exodus of Euro-denominated assets out of European banks and into the U.S. dollar. Spanish banks bore the brunt of the capital outflow, with an estimated 100 billion Euros leaving Spain. As a result, the dollar appreciated more than 6.5% versus the Euro during the month. The U.S. bond ...