Like a long-running TV series, the latest season of the Brexit saga brings new drama and tension. Like all good drama, there are twists and turns in the plot, unclear motivations of key characters, complexity and new set-piece showdowns. Last
Over the last five months, market participants have been following the COVID-19 pandemic as it has evolved into a global health crisis and forced various forms of lockdown across the world. The next 12-18 months …
As the world starts to look beyond crisis management and focus returns to non-coronavirus-related objectives, improved regulation could become an unexpected ESG benefit of the pandemic. Back in 2019, all the signs were that 2020 was set to be THE
Forest fires are harming both Brazil’s environment and its sovereign investment credibility. As bondholders, we’re taking action and driving engagement with policymakers to help preserve the country’s unique rainforest resource, which in turn supports its creditworthiness.
High-yield bonds often deliver strong returns following a period of crisis – why is that and will it happen in the wake of COVID-19? Due to a higher-risk nature of its constituents (including the greater risk of default), the high-yield
The Covid-19 pandemic triggered a wave of support to keeps banks functioning efficiently and economies ticking over through lockdowns. We look at what action has been taken and its impact on the health of the banking sector.
Investors have become familiar with frequent headlines on the latest regulations being implemented by European banks to improve their fundamentals. Should a slowing of this newsflow arouse concern? We believe the answer is …
Cocos in 2020 In our view, growth appears to have reached an inflection point and is showing signs of a stabilisation, central bank policy remains extremely accommodative and recessionary risks are abating. However, we also see a world where corporate
After a positive year of returns in 2019, what are your expectations for the asset class going into 2020? 2019 proved to be a positive year for emerging market (EM) assets, particularly those denominated in USD. Returns were robust despite
Executive summary Global growth is near a point of positive inflection and recession fears should ease. The easing in financial conditions, moderation in the drag on growth from the US-China ‘trade war’ and credit and policy-supported stabilisation of the Chinese
The US leveraged loan market has proven to be, until recently, resilient, despite facing a challenging environment over the past few years. Outflows from the retail component of the US leveraged loan market have been incessant for the past year,
Asset Allocation Navigator Fourth quarter 2019 Central banks cutting interest rates helps, but can’t fully offset the drag on growth from tariffs and trade policy uncertainty. The ‘skinny’ trade deal between the US and China suspends a planned tariff increase in mid-October, but
Structured credit has gone through a significant evolution over the past 10-years to emerge as a stable, well-regulated and, in our view, attractively priced asset class. With a more defensive profile than corporate credit, combined with compelling premiums, the asset
Britain appears to be sleepwalking towards a sticky end as the Brexit cli edge looms large. At least the outlook is brighter across the Atlantic, while a possible bottoming in China lifts risk assets. Soft economic data in the eurozone
The carbon-based model of industrialisation is coming to an end. Emerging market governments have the opportunity to become trailblazers for the next era, one where ESG will play a pivotal role. The scale of the task and its urgency has
Emerging Markets Debt Update Global equities suffered last week as the release of minutes from the 25–26 September Federal Reserve (Fed) policy meeting were deemed marginally hawkish, leading to a sharp reversal higher in rates on the evening of the
The time is now? Bond investors have lagged their equity counterparts in integrating ESG considerations into portfolios. But with ESG occupying a bigger role in credit ratings, and investors showing more willingness to engage with issuers, the fixed income sector
Evolution and reversals The peaks of the early 80s gave way to a compression trend for US Treasury yields that has lasted until very recently. This span of almost four decades – which covers the whole career of most active
Weekly Update Developed market equities continued their march higher this week, with the S&P reaching new highs amidst positive earnings and optimism around a potential NAFTA breakthrough. When looking at developed markets performance, one could be forgiven for thinking all
Investment Grade Debt Update The volatility in EM, Italy and Brexit are all likely to contribute to volatility in the coming months, selecting your hedges prudently and positioning on the on the right side of these events will be crucial.
EM continues to be in the driving seat with respect to broader market direction, with investor positioning in the spotlight. With financial markets in mid-summer mode, photographs from Venezuela this week served as a stark reminder of what can happen
No release Emerging market (EM) assets remained under pressure this week as Turkey refused to release Pastor Brunson amid the ongoing spat with the US. Italy also emerged as a source of concern for investors, with the Genoa motorway tragedy
If Brexit is Dead..! A strong US dollar has been the principal feature in global financial markets over the course of the past week. During the past quarter, we have seen US growth accelerate compared to moderation elsewhere and this
Investors remain on edge as trade tensions, market technicals and upcoming elections weigh in on sentiment Major bond market yields were little changed over the past week, with investors seeming to shrug off growing trade worries, as the Trump administration
ESG integration in action ‘Who cares wins’. David Jones, the CEO of Havas Worldwide, wrote this book six years ago explaining why the most successful businesses in the future will be the ones that are most socially responsible. However, when
Investors need to manage risk to take a breather and observe the shifting global economy, says our expert #Norman_Villamin in the Hong Kong Economic Times. Read on.
First of its kind biodiversity tool for investors announced - via @AdviserVoice https://www.adviservoice.com.au/2020/09/first-of-its-kind-biodiversity-tool-for-investors-announced/
