‘Blue Wave’ and Crypto in our Best Read last week

Editorial Team OpinioPro
By February 11, 2021 14:25

‘Blue Wave’ and Crypto in our Best Read last week

‘Blue Wave’ and Crypto in our Best Read last week

US bond yields buoyed by the ‘Blue Wave’

Columbia Threadneedle Investments provides readers with an in-depth discussion of fixed income assets. One important takeaway is the Biden presidency causing rising inflation expectations. On the responsible investment side, green, social and sustainable bond issuance this year so far as reached $5.8 billion (according to Bloomberg), which is an 89% increase on this time last year.

Furthermore, The European high yield market looks bleak in the near future due to the pressure on health system and many lockdowns in Europe currently. The commodity index rallied 2.1% last week and WTI climbed by more than 7%. If interested in more takeaways, please take a look at the article to find all the information needed.

DNB starts implementation of new UFR curve

Another top read article is one by Aegon Asset Management that discusses the new implementation of the new ultimate forward rate (UFR) by De Nederlandsche Bank (DNB). The calculation of the UFR will be based on 30 year forward rates instead of 20. From 2024 the new methodology will be fully implemented.

In practice, the new curves will each year move closer to the market curve and lead to increases in the liabilities (compared to the pre-2021 methodology). “Whilst the introduction of the new method will lead to lower funding ratios, it also makes it easier for pension funds to stabilize their funding ratio and interest rate hedge ratio over time, due to the closer alignment with economic reality.”

2021 Global Multi-Asset Outlook

T. Rowe Price treated us with something most investors are always on the lookout for: a 2021 Global Multi-Asset Outlook. The article pinpoints that the global recovery can definitely create investment opportunities. The current consensus is that the outpacing of the U.S. markets might come to an end, as the pandemic comes to a conclusion and other markets begin to boom. T. Rowe Price favors markets that are “more leveraged to an acceleration in global trade and Chinese growth”.

Given the current low interest rates, bonds are not the ideal asset to offer attractive returns. A solution to this could be for the investor to allocate a higher share of their portfolio to stocks. The report finishes by saying that the investor should always keep his timeframe and risk appetite in mind whilst understanding the strength of compounding over the years.

This report is a must-read for investors wanting to know the regional views perspectives and an overall consensus of the upcoming year.

Cryptoassets, The Guide To Bitcoin, Blockchain, And Cryptocurrency For Investment Professionals

We finish off the top read list with a CFA Institute Research Foundation article about Bitcoin, Blockchain and Cryptocurrency in general. CFA first explains how Bitcoin works, when it was launched and why Bitcoin is important in this day and age. There are a lot of differences between cryptos and normal currencies, for example transaction for cryptos are a lot faster or the transaction costs are much lower.

Afterwards, CFA compares the characteristics of different crypto coins with the biggest market cap. Moving on to the most interesting topic, the investment opportunities of cryptos are discussed. The article thoroughly explains how currencies are valuated plus the role of cryptos in your portfolio is also talked about. For investors wanting to find out more about the world of crypto and which coin to invest in, this article offers all the answers. “Perhaps most importantly for investors, will crypto’s historical pattern of returns persist into the future, or will returns flatten or even reverse?’’

These were the Best Reads of last week! We post new research every working day.

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Editorial Team OpinioPro
By February 11, 2021 14:25

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