Participants of the 25th New York Korean Finance Forum held by Korea Investment Corporation’s New York office at The Korea Society in New York on Dec. 18 (local time) are listening to a panel discussion. (Photo provided by Korea Investment Corporation)
Korea Investment Corporation (KIC) announced on Dec. 19 that it held the 25th “New York Korean Finance Forum” at The Korea Society in New York on Dec. 18 (local time), organized by its New York office.
The forum was attended by approximately 30 participants, including the Deputy Consul General from the Consulate General in New York, along with investment officials from government agencies, public investment institutions, securities firms, banks, and insurance companies.
Ian Lyngen, Head of US Interest Rate Strategy at BMO Capital Markets, who delivered the presentation, forecasted that US interest rates may decline next year as instability in the US employment market continues.
“Recent US unemployment rates have reached their highest levels since 2021, and layoff indicators are increasing to levels seen during past economic recessions,” he said. “The Federal Reserve will continue to cut interest rates next year based on the slowdown in the employment market.” He further predicted, “US Treasury rates will decline across most maturities by the end of next year, but the yield curve will gradually steepen as term premiums expand.”
This means that long-term US Treasuries may experience smaller interest rate declines compared to short-term securities, potentially widening the spread between long-term and short-term rates. BMO Capital Markets is a subsidiary of Bank of Montreal (BMO), a Canadian financial institution that provides comprehensive financial services including investment banking, capital raising, advisory services, and risk management.
Lee Kyung-taek, Head of Korea Investment Corporation’s New York office, who organized the event, said, “This was a beneficial occasion where we forecasted next year’s US Treasury market ahead of the Federal Reserve leadership transition and discussed key issues in the financial industry in depth. We will continue to provide various opportunities to support Korean institutional investors in establishing long-term investment strategies and understanding US macromarket trends.”
