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Posts From Amundi

Net Zero Investment Portfolios Part 1. The Comprehensive Integrated Approach

Net Zero Investment Portfolios Part 1. The Comprehensive Integrated Approach

🕔16:08, 8.Dec 2022

The emergence of net zero emissions policies is currently one of the most important topics among asset owners and managers. It considerably changes portfolio allocation and the investment framework of both passive and active investors. The academic literature generally concludes

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Angst in the global FX village

Angst in the global FX village

🕔15:17, 30.Nov 2022

The FX regime of the last 20-25 years was characterised by a massive accumulation of USD reserves by export-oriented Asian countries, overall low FX volatility, and a still dominant role for the USD as a ‘public good’ facilitating global trade.

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Some light for investors after the storm – Outlook 2023

Some light for investors after the storm – Outlook 2023

🕔12:26, 30.Nov 2022

We expect global growth to slow significantly, with several countries across both developed markets (DM) and EM suffering stagnation, while others may face a slowdown at best. Global growth should land at around 2.2% in 2023, down from 3.4% in

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Artificial intelligence for sustainable finance: why it may help

Artificial intelligence for sustainable finance: why it may help

🕔10:16, 28.Nov 2022

Developments in Artificial Intelligence (AI) and machine learning have led to the creation of a new type of ESG data that do not necessarily rely on information provided by companies. This paper reviews the use of AI in the ESG

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Artificial Intelligence and ESG: How do they fit?

Artificial Intelligence and ESG: How do they fit?

🕔08:32, 28.Nov 2022

The good news is that AI tools are available now which can collect and analyse more information on ESG risks and opportunities than ever before. These tools improve the quality of data, analyse it effectively and create new exciting opportunities. 

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Central & Alternative Scenarios (12 To 18 Months Horizon)

Central & Alternative Scenarios (12 To 18 Months Horizon)

🕔12:54, 14.Nov 2022

We maintain the content and probabilities of our scenarios. Note that some of the risk factors we identify may occur in our central scenario, which is probably not yet fully priced-in by markets. It would take a combination of risk

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TLTRO in the context of ECB policy normalisation

TLTRO in the context of ECB policy normalisation

🕔12:50, 10.Nov 2022

TLTRO repayments and redemptions will drive incoming ECB passive QT over the next few quarters. So far, banks have repaid a small amount of liquidity, while the ECB’s recent decision on remuneration of excess reserves has helped keep current excess

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Fast Filtering with Large Option Panels: Implications for Asset Pricing

Fast Filtering with Large Option Panels: Implications for Asset Pricing

🕔10:38, 27.Oct 2022

The cross-section of options holds great promise for identifying return distributions and risk premia, but estimating dynamic option valuation models with latent state variables is challenging when using large option panels. We propose a particle MCMC framework with a novel

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Real-Time Macro Information and Bond Return Predictability: A Weighted Group Deep Learning Approach

Real-Time Macro Information and Bond Return Predictability: A Weighted Group Deep Learning Approach

🕔08:10, 27.Oct 2022

This paper proposes a weighted group neural network model and reexamines whether treasury bond returns are predictable when real-time, instead of fully-revised, macro information is used. Real-time macro vintage data and news-based topic attention are taken into account. We find

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Asset Class Returns Forecasts Q3 2022

Asset Class Returns Forecasts Q3 2022

🕔14:26, 28.Sep 2022

A combination of sustained inflation and mounting recession fears, interlinked with the geopolitical situation, are the main drivers affecting the current and forward-looking macro environments. The bulk of the uncertainty is in the short to medium term. There is a

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The autumn hard vs. soft landing puzzle

The autumn hard vs. soft landing puzzle

🕔08:59, 27.Sep 2022

CROSS ASSET Investment Strategy  While a global recession may be avoided, we are likely to see growth deceleration and high inflation (higher cost of living) along with regional divergences. Thus, investors should consider moving to a more cautious stance on

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Advanced Investment Phazer: a guide to dynamic asset allocation

Advanced Investment Phazer: a guide to dynamic asset allocation

🕔08:05, 22.Sep 2022

Economic cycles have been a crucial driver for financial markets, making regime-based dynamic asset allocation (DAA) a common practice in supporting optimal portfolio construction. Changes in key economic indicators, monetary policy trends and the evolution of financial leverage have proven

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Credit Factor Investing with Machine Learning techniques

Credit Factor Investing with Machine Learning techniques

🕔10:32, 9.Aug 2022

Abstract The most common models to assess asset returns are a linear combination of risk factors. We have employed tree-based machine learning algorithms to capture nonlinearities and detect interaction effects among risk factors in the EUR and USD credit space.

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Play the desynchronization of the cycle

Play the desynchronization of the cycle

🕔16:34, 26.Jul 2022

CROSS ASSET Investment Strategy: The current repricing is a reminder of a regime shift in which stagflationary concerns are becoming prominent. Investors should move towards quality segments in credit and equities, and aim to benefit from the regional divergences that

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Credit Factor Investing with Machine Learning techniques

Credit Factor Investing with Machine Learning techniques

🕔14:02, 20.Jul 2022

Explaining portfolio returns through Fama-French-Carhart models supposes linearity between returns and risk factors. It makes it possible to simply identify relationships as a linear combination of factors, while in reality, these relationships could be much more complex. In support of

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Emerging Market Green Bonds Report 2021

Emerging Market Green Bonds Report 2021

🕔12:52, 14.Jul 2022

Green and sustainable investment in emerging markets and developing economies (EMDEs) rebounded from pandemicrelated challenges to reach record levels in 2021. This report provides an overview of developments in the market for green bonds issued in these economies and for

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Fed becoming worried about inflation expectations

Fed becoming worried about inflation expectations

🕔14:18, 11.Jul 2022

Federal Open Market Committee (FOMC) meeting and statement: On 15 June, the Fed hiked the Fed funds rate by 75bp, to 1.50-1.75%, the first 75bp rate rise since November 1994. Chair Jerome Powell confirmed that recent readings regarding consumer inflation

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Life above zero: investors’ journey at a time of rising rates

Life above zero: investors’ journey at a time of rising rates

🕔17:54, 7.Jul 2022

We started the year with expectations of strong growth and high inflation throughout the first part of 2022. The Russia-Ukraine war accentuated the inflationary trend, now well above Central Bank (CB) targets, which is now set to persist longer than

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Focus on Spain: macroeconomic projections and fixed income view

Focus on Spain: macroeconomic projections and fixed income view

🕔08:49, 7.Jul 2022

Spain’s public finances and the trajectory of Spanish debt: The debt/GDP ratio rose to 120% in 2020 after the shock of the Covid-19 pandemic. The country’s debt and deficit sustainability face two main headwinds: a more adverse funding profile due

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Macroeconomic projections for the Italian economy and fixed income implications

Macroeconomic projections for the Italian economy and fixed income implications

🕔12:47, 6.Jul 2022

Italy’s public finances and the trajectory of Italian debt: The debt/GDP ratio rose to 150% in 2021, impacted by the shock of the Covid-19 pandemic. But we observe a somewhat stronger decline in the ratio for any given level of

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Life above zero: investors’ journey at a time of rising rates

Life above zero: investors’ journey at a time of rising rates

🕔12:03, 5.Jul 2022

Global economy is slowing, due to the fallout from the Russia-Ukraine war, supply bottlenecks and China’s zero-tolerance Covid-19 policy. CBs will tighten financial conditions to tame persistent inflation. A global recession is not our main scenario, but there are areas

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ESG journey is set to accelerate in credit markets

ESG journey is set to accelerate in credit markets

🕔12:59, 30.Jun 2022

Last year global sustainable debt issuance hit a record of over $1.4tn, with the overall sustainable debt universe expanding to near $3.4tn. In the first quarter of 2022 this healthy trend halted temporarily, as high energy prices and rising borrowing

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Emerging Market Green Bonds Report 2021

Emerging Market Green Bonds Report 2021

🕔08:53, 28.Jun 2022

Riding the Green Wave: Green and sustainable investment in emerging markets and developing economies (EMDEs) rebounded from pandemicrelated challenges to reach record levels in 2021. This report provides an overview of developments in the market for green bonds issued in

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Cross Asset Investment Strategy

Cross Asset Investment Strategy

🕔14:55, 27.Jun 2022

United States: After the contraction in Q1 (resulting from an outsized detraction from net exports and a payback from the surge in inventories in Q4, not from weak demand) we expect sequential growth to pick up from Q2 and stabilise

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The myth of the fiscal free lunch: beware of the trap. An investor’s viewpoint

The myth of the fiscal free lunch: beware of the trap. An investor’s viewpoint

🕔14:25, 23.Jun 2022

The idea that there is a comfortable degree of budgetary room for more active fiscal policy goes hand-in-hand with the assumption that a sustained bond correction (higher safe real interest rate) is not only unjustified based on fundamentals, but is

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The power of narratives for investors

The power of narratives for investors

🕔12:53, 23.Jun 2022

The rise of the narrative concept and how it can help financial market understanding. A narrative is a popular story that arises from the public consciousness of market events. The most viral and intense of these may dominate public attention.

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Keeping up with climate change in setting long-term asset class views

Keeping up with climate change in setting long-term asset class views

🕔07:23, 22.Jun 2022

Today climate change is arguably the most critical long-term challenge that humanity is facing. “Climate action failure” is not only the top longterm threat in the World Economic Forum’s Global Risks Report for 2022, but is also a key element

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Central & Alternative Scenarios (12 To 18 Months Horizon)

Central & Alternative Scenarios (12 To 18 Months Horizon)

🕔16:30, 21.Jun 2022

We keep the probabilities of our central and alternative scenario unchanged versus last month but amend the narrative to take into account the evolving geopolitical situation (see Ukraine crisis tree).The new wave of Covid-19 in China and stagnation in the

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Tech sell-off and bond temptation

Tech sell-off and bond temptation

🕔15:32, 14.Jun 2022

CROSS ASSET Investment Strategy – June 2022: The repricing of a more aggressive Fed stance has been brutal as the 10Y UST yield temporarily reached the 3% threshold, falling close to 2.75% recently on economic growth concerns. We think investors

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Tech sell-off and bond temptation

Tech sell-off and bond temptation

🕔10:05, 8.Jun 2022

The second quarter of the year is becoming increasingly painful for tech stocks, recalling memories of the 2000s tech bubble bursting. The repricing of a more aggressive Fed stance has been brutal, real yields rose – the rate on 10-year

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Engaging on Human rights: Identifying risks and promoting best practices

Engaging on Human rights: Identifying risks and promoting best practices

🕔11:34, 30.May 2022

Identifying, monitoring and preventing human rights violations is not only a government responsibility but also a corporate concern. Operations across a company’s value chain play a key role in human rights outcomes as reflected in the 10 principles of the

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Looming divergences and the great asset repricing

Looming divergences and the great asset repricing

🕔14:01, 25.May 2022

Diverging economic outlooks in Europe, US and China, along with persisting geopolitical risks, underscore the need to explore relative value opportunities across asset classes. On duration, we think investors should be flexible but no longer as short as they were

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Looming divergences and the great asset repricing

Looming divergences and the great asset repricing

🕔14:42, 24.May 2022

We are witnessing significant divergences in the economic outlook (we have revised down the EU and Chinese economic outlooks vs. the more resilient US economy) and in market performances. In particular: (1) Inflation expectations – short-term peak vs. long-term rise:

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The energy crisis heightens inflation fears

The energy crisis heightens inflation fears

🕔12:38, 19.May 2022

Inflation was already running well above central banks’ targets as we entered the year. The war has put additional pressure on prices and supply chains and this could have repercussions not just on oil, but on other commodities as well.

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ECB strikes a somewhat dovish tone, despite inflation remaining top priority

ECB strikes a somewhat dovish tone, despite inflation remaining top priority

🕔12:27, 10.May 2022

April meeting: No further acceleration of stimulus withdrawal was hinted at by the ECB in April. It confirmed both the previous guidance on QE (likely to end in Q3) and the policy sequence, with interest rates to rise at “some

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US economy and markets look resilient regarding the Russia-Ukraine crisis

US economy and markets look resilient regarding the Russia-Ukraine crisis

🕔11:03, 3.May 2022

Market assessment: After an initial negative reaction to the Russia-Ukrainian conflict, US equities markets are now above their pre-war levels. US equity volatility has proven much lower compared to Europe, which is more exposed to the crisis and to the

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Winds of war blow on economic outlook

Winds of war blow on economic outlook

🕔14:45, 25.Apr 2022

Ukraine: where do we stand? The first month of the Russia-Ukraine war has driven volatility up across the board, though with some recent signs of stabilisation in equity markets. Europe is the area most exposed to the war – in

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Central & Alternative Scenarios (12 to 18 months horizon)

Central & Alternative Scenarios (12 to 18 months horizon)

🕔10:26, 19.Apr 2022

Monthly update We keep the narratives and the probabilities of our central and alternative scenario unchanged versus last month. The war in Ukraine could evolve in several ways over the coming weeks (see Ukraine crisis tree) with significant implications on

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Keeping up with climate change

Keeping up with climate change

🕔08:04, 13.Apr 2022

The third year of the Covid crisis began with renewed concerns over the interplay between surging inflation and an economic recovery contingent on concerns over policy tightening, a trend further accelerated by the Russian-Ukrainian conflict. While we collectively gather ourselves

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Winds of war blow on economic outlook

Winds of war blow on economic outlook

🕔08:27, 11.Apr 2022

Ukraine: where do we stand? The first month of the Russia-Ukraine war has driven volatility up across the board, though with some recent signs of stabilisation in equity markets. Europe is the area most exposed to the war – in

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When artificial intelligence meets economy: an analysis of the Ukraine war

When artificial intelligence meets economy: an analysis of the Ukraine war

🕔12:01, 4.Apr 2022

As the war unfolds in Ukraine, the understanding of its impact on the global economy is changing rapidly and some excellent analysis has already been produced. In this paper, Amundi Technology and Amundi Institute have used the Causality Link platform

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Global Investment View – April 2022

Global Investment View – April 2022

🕔14:05, 31.Mar 2022

Winds of war blow on economic outlook. The first month of the Russia-Ukraine war has driven volatility up across the board, though with some recent signs of stabilisation in equity markets. Europe is the area most exposed to the war

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A more fragmented Emerging Markets world amid the Russia-Ukraine crisis

A more fragmented Emerging Markets world amid the Russia-Ukraine crisis

🕔08:04, 31.Mar 2022

The economic damage from the Russia-Ukraine conflict has made the Emerging Markets (EM) outlook more uncertain. While the uncertainty persists and the final outcome of the war is still difficult to anticipate, we believe that macro fundamentals will be impacted

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Financing the energy transition in Asia

Financing the energy transition in Asia

🕔10:47, 21.Mar 2022

Key takeways Climate change commitments have stepped up recently but have yet to fully answer the call. National commitments should not constitute a limitation or constraint for a business entity to set ambitious net zero targets that are aligned with

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Russia attacks Ukraine: Markets will have to adjust to the shock

Russia attacks Ukraine: Markets will have to adjust to the shock

🕔14:35, 16.Mar 2022

Global markets were not pricing in a war scenario and are now adjusting given the magnitude of this military move. It will take time for the situation to settle down. In the meantime, uncertainty and volatility will persist, with the

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Hot inflation and geopolitical tensions: cool down risk

Hot inflation and geopolitical tensions: cool down risk

🕔10:04, 11.Mar 2022

The geopolitical escalation at month’s end marks a further rise in volatility, even as the Fed and the ECB displayed hawkish overtures earlier. We suggest a more cautious stance in credit amid rising liquidity risks and a less appealing risk/return

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European equity market: the great value rotation and the dividend appeal

European equity market: the great value rotation and the dividend appeal

🕔10:21, 9.Mar 2022

January 2022 was a record month for European value equity, in terms of its outperformance vs. growth. The market’s reassessment of central banks’ actions after their hawkish turn has driven real yields higher and benefitted value stocks, while growth sectors

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Equity Convexity and Unconventional Monetary Policy

Equity Convexity and Unconventional Monetary Policy

🕔17:44, 3.Mar 2022

In this paper, we intend to gain an understanding of the drivers of stock convexity, also known as gamma. First, using a bottom-up – firm-level – approach, we showcase that stock fundamentals, in particular metrics related to value (captured by

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Net Zero Carbon Metrics

Net Zero Carbon Metrics

🕔13:04, 2.Mar 2022

Following the last Intergovernmental Panel on Climate Change report on the climate emergency (IPCC, 2021), countries, companies and investors are increasingly acknowledging the …

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Keeping up with our Investment Outlook for 2022

Keeping up with our Investment Outlook for 2022

🕔08:46, 2.Mar 2022

2022 will be the “year of reckoning” for DM economies when they will test the effectiveness of the policies deployed since the peak of the pandemic phase and face the challenge of retuning to normality: fiscal and monetary policies will

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