Bonds

The market will need the Fed again in 2020

Illustration of a needle injecting money
Illustration: Aïda Amer/Axios

The No.1 risk to the stock market continuing its outperformance next year is not President Trump or consistently weak U.S. economic data or even China, senior analysts at John Hancock Investment Management say, but whether or not the Fed continues to stimulate the economy through what they call "not QE."

What it means: Fed chair Jerome Powell has insisted the central bank's bond buying program — initiated after rates in the systemically important repo market spiked to five times their normal level in September — is not quantitative easing.

WeWork's axed IPO driving the yield on its bonds up

Data: FactSet; Chart: Axios Visuals

In mid-August the yield on WeWork's 2025 junk bond was 6.8%, and this week it hit 16.1%.

The state of play: WeWork's IPO was pulled at the end of September, depriving the company of billions of dollars in IPO proceeds as well as even more liquidity in the form of an attached loan commitment. That news drove the yield on WeWork's bonds up to 11.6%.