Investors can choose between two different types of instruments when investing in the corporate high-yield market: traditional high-yield bonds and high-yield CDS indices. In this white paper, we shall look at the performances of the global high-yield bond market since
The COVID-19 pandemic has affected Florida agriculture — primarily vegetable growers who were major sellers to the food service industry. The pandemic caused many of the producers that were selling to food service companies to market their crops to grocery
Following the OECD in March, the IMF is now preaching optimism on the outlook for growth. Against a backdrop of a less severe contraction overall than had been feared in 2020, world GDP is expected to increase by 6% this
Evolving consumer tastes. In the USA and Europe, a growing number of people are cutting their meat intake or giving it up altogether. As a result, in addition to vegans and vegetarians, there are an increasing numbers of flexitarians –
For the first time since the advent of the internal combustion engine, a complete transformation in car transport is underway. Instead of personally-owned, gasoline-powered, humandriven vehicles, the advanced economies are transitioning to electric-powered and driverless vehicles, paid for by the
We are pleased to share our third annual assessment of sustainability and impact for Putnam Sustainable Leaders Fund and Putnam Sustainable Future Fund. Against the backdrop of the funds’ goals of long-term capital appreciation, we aim to generate excellent financial
We are now less than a decade out from the self-imposed deadline set by many companies to become carbon neutral by 2030. Similarly, the 2050 deadline set by many countries to this achieve this is looming into view. Big strides
Increasing regulatory control, due to central banks protecting their economic policy sovereignty and national governments seeking to control climate change, is an imminent risk for cryptocurrencies. In particular, China’s official digital currency is ‘anti-cryptos‘. Cryptocurrency anonymity, notably in the case
To be successful, companies need to have people at the helm who are well-equipped to create resilient long-term growth. By voting and engaging directly with companies, we encourage management to control risks while seeking to benefit from emerging opportunities. We
In Credit: The key theme this year for markets has been the trend higher in inflation expectations and the question of whether the US economy is overheating. This has prompted a rise in government bond yields, with German and UK
US core consumer prices jumped by 0.9% on the month in April. When combined with the big fall in prices 12 months ago dropping out of the annual calculation, year-on-year core consumer price index (CPI) inflation was pushed up to
The Fed may announce first asset tapering steps this summer. Should the health of the U.S. economy continue to improve at its current pace in the coming months, investors will have to prepare for a gradual normalization in Federal Reserve
Macro Insight: In late March, President Biden announced details of a further package – the $2.3tn American Jobs Plan. This set out major spending plans and tax changes for the US economy over the next 15 years (Figure 1).
In the current post Covid-19 recovery phase, we see three main themes that multi-asset investors should focus on: one more tactical, in terms of risk allocation, and two more structural. – First, as the recovery advances, investors should embrace more
In a week marked by volatility in broad risk markets related to concerns around inflation, the U.S. loan market maintained a steady pace, as the S&P/LSTA Leveraged Index (the “Index”) posted an advance of 0.09% for the seven-day period ended
US inflation surprised to the upside in April with the core consumer price index rising 0.9% in April and headline CPI up 0.8%1. This materially changes the maths on inflation. Even if the monthly trend in inflation decelerates to 0.15%,
We have remarked previously on the similarities between asset management and football (Investing? It’s a funny old game, July 2018), and as Covid-19 swept the globe during the last 12 months, our thoughts once again turned to these parallels. At
As a result of COVID, we all now live in an age of uncertainty where having choices is important for our well-being, both financially and emotionally. Financial independence gives us choices and without these we will be trapped in unfulfilling
The starting universe is composed from the members of the OECD, therefore each new membership is included in the starting universe. The sustainability ranking allows the identification of countries which have fully integrated global challenges in their development of medium-term
On the tail of hard pandemic lockdowns that imposed the deepest economic contraction on record, the US economy is reopening amid a rapid COVID-19 vaccination roll-out and an avalanche of fiscal spending. So, investors are naturally now contemplating what kind
Welcome to KraneShares' Mid-Year China Conference, Innovation: The Next Phase of China’s Secular Growth. We believe the next phase of secular growth within China will be driven by innovation in science and technology. Companies in industries such as the internet,
Post‑pandemic recovery will likely aid company earnings and dividends. Equity dividend or income strategies had a particularly difficult time in 2020, thanks to the deep, if short‑lived, global recession triggered by the coronavirus pandemic. However, as economies begin to recover, growth
The economic recovery should broaden into a synchronised global upturn in the course of the second half of this year, favouring risky assets including commodities, equities generally and notably emerging market equities. An equity correction should be seen as a
While the attractiveness of emerging markets in the longer term isn’t in question, a number of obstacles could stop them from outperforming in the coming months. Covid reality Throughout last year, many EMs handled the pandemic much better than the
Market participants have closely monitored China’s constantly evolving relationship with the United States. Tensions between the U.S. and China have been exacerbated by trade wars, sanctions, human rights violations, and threats of delisting of Chinese companies on U.S. exchanges. Despite
A year on from the height of the COVID-19 crisis, credit spreads have returned to their pre-pandemic tight levels. Does this present an asymmetric return profile for corporate bonds? The scope for further spread tightening is limited, in our view.
Obligatiebeleggers gebruiken verschillende indicatoren om hun portefeuille samen te stellen, maar het is het reële rendement dat hun onverdeelde aandacht verdient. Het valt obligatiebeleggers te vergeven dat ze zich enigszins gedesoriënteerd voelen. Ervaringen uit het verleden betekenen niet veel wanneer
Getting the balance correct between short-term relief checks and long-term infrastructure spending is critical Last summer, at the height of the Covid-19 crisis, I bought and built a swing set for my grandchildren. Construction was reasonably straightforward and – remarkably
US inflation looks set to rise significantly heading into the summer. Contrary to the view that this will be a temporary increase, a number of forces could combine to create greater structural pressure pushing prices higher for longer. Markets are
Yield curves may steepen as growth recovers. EM growth recovered during the second half of last year, but most countries’ gross domestic product (GDP) remains below 2019 levels. The recovery has been led by exports and industrial production, which were
Indexology SPRING 2021 Magazine: We talked with Francois Millet, Managing Director and Head of Strategy, ESG, and Innovation at Lyxor ETF, and Jaspreet Duhra, Senior Director and Head of EMEA ESG Indices at S&P DJI, about the evolving role of ESG
Vaccination rollout/lockdowns lower pandemic risk. PULSe is a composite indicator that is designed to monitor the state of global financial markets since the coronavirus crisis. It stands for Pandemic, Uncertainty, Liquidity, and Sentiment— four factors that we believe encompass much
It’s never been more important for the financial sector to take steps to help safeguard the planet’s biodiversity. In which areas can it make a difference? Ahead of the 2021 International Day for Biological Diversity, Robert-Alexandre Poujade explores the possibilities.
Deciphering Europe’s ambitions, actions and ability to reach net zero: The European Union (EU) has long led the world on climate action and policies. In December 2019 it pushed the boundaries again, unveiling the European Green Deal and its ambition
De COVID-19 pandemie had een diepgaand en onmiddellijk effect op de wereldwijde aandelenmarkten. De wereldwijde beurzen daalden in februari en maart 2020 fors. Maar na de enorme fiscale en monetaire stimuleringsmaatregelen van regeringen en steun van centrale banken, stortten beleggers
Weekly Economic Commentary: I watched the film “Apollo 13” again recently. For those too young to remember, a mission to the moon that launched 50 years ago almost ended in disaster; working feverishly, ground control was able to bring the
Amid a US economic boom, how high can rates go? The possibility of an economic boom this year has stoked worries about higher inflation and prompted a sharp selloff in US Treasuries. We spoke with fixed income portfolio manager Pramod
In Credit: The upward trend of rising inflation expectations continues and is now at 2.5% at the 10-year point of the curve and 2.8% for two years. The US non-farm payroll / employment sector report released last Friday revealed that
The Weekly Brief: The rise in US economic growth and inflation has been well flagged by markets and economists but uncertainty remains as to the persistence of these pickups. A successful vaccine rollout is enabling a reopening of the economy
The European bank earning season has passed and the outlook continues to be positive for AT1s. The vast majority of banks have beaten expectations with capital markets/trading and lower provisions being the main drivers. The expectation, particularly on the provisioning
Equity and fixed income markets have benefited from both stepped-up central bank support and governments shifting from austerity as a response to economic shocks to fiscal generosity. Equity valuations are now at 20-year highs, partly on the back of the
Global Asset Allocation: The View From Europe A renewed surge in coronavirus cases across several emerging markets (EM) countries—including India, Brazil, and Argentina—is weighing heavily on these economies as they struggle with insufficient medical infrastructure and access to vaccines. In
Inflation has been quiescent in developed economies in recent years. Today, the possibility that we may be on the brink of a secular shift away from the low-flation regime is a topic of intense debate among investors. Nowhere is this
As we reach the mid-point of Q2 2021 it seems a good time to sum up fixed income markets year-to-date. As you can see in Figure 1, government bond yields are higher – with the US and, to an extent,
Asset Allocation Monthly: Equity and fixed-income markets have benefited over the last year not only from stepped-up central bank support, but also from a clear abandonment of ‘austerity’ as a response to economic shocks. Instead of regaining investors’ trust through
2020 was a difficult year, for society, businesses and markets alike. The pandemic presented new and unforeseen challenges, creating periods of extreme uncertainty, and correspondingly high volatility in financial markets. As a result, governments and central banks around the world
There is one main reason why you, as an investor, should consider Emerging Markets: Growth. People can be hesitant to invest in the region because of political, economic or social issues, but when approached in the right manner, with risk
The global recovery has continued to gain traction in recent months, taking an uneven shape across regions. The Covid-19 pandemic is far from over, with recent virus surges and uneven vaccine roll-out continuing to challenge the timeline for economic reopening,
A global pandemic kicked off the 2020s – a decade still feeling the effects of the 2007-2008 Global Financial Crisis with ultra-low interest rates and monetary authorities propping up asset markets. It is also a decade preceded by deep social,
Past enhanced index strategies fell out-of-favor with institutional investors because they sought to generate excess returns from common and crowded risk factors such as credit, value, earnings growth and revision, price momentum and quality. The novel enhanced index approach that
