The recent fluctuations in the Federal Reserve's overnight reverse repurchase facility (RRP) depict a significant development in monetary mechanics. Since the June 1 debt ceiling resolution, RRP balances have seen a staggering drop of over $600 billion. This trend was
In the thought-provoking article "Why 2022 broke the traditional 60/40 model" by BNY Mellon, Andy Warwick, a Newton portfolio manager, reflects on the unprecedented rate hikes of recent times. He paints a future filled with price instability, magnified geopolitical risks,
In the recent piece "‘Regime change’ delivers bond boost," BNY Mellon elucidates the rapid transformations occurring in the global macroeconomic realm. As highlighted by Adam Whiteley, Insight Investment's head of global credit, these transformations, combined with increased investments in climate
The latest issue of "Vantage Point" provides a comprehensive outlook on the current global economic and investment climate. Authored by the Global Economics and Investment Strategy (GEIA) team, the report suggests that while no major global recession is in sight,
BNY Mellon Investment Management's chief economist, Shamik Dhar, projects an economic future characterized by high interest rates and inflation. He posits that despite creating elevated market and economic volatility, these conditions may offer rational asset allocation opportunities. Dhar also forecasts
The March 2023 edition of "The Alta Report" presents a comprehensive overview of BNY Mellon's influential position in the global market, touching 20% of the world's investable assets. It offers key insights into post-banking turmoil trends, highlighting the significant shift
Africa is set to benefit from new financial infrastructure that is designed to boost liquidity in its sovereign debt and attract private investment into its climate-linked bonds. Can it work for africa and beyond? For more than a decade, pockets of
Disruptive behaviour by some should not be allowed to spoil the opportunity in digital ledger technology. Events of the past few weeks offer a cautionary tale to anyone following the crypto space. Blockchain technology and its resulting cryptoassets were built
U.S. retail investors’ heightened market activity and engagement has been fascinating to watch over recent years. There has been a number of factors which have had a profound impact on the retail investor segment, including the pandemic, technological advancement in
Introduction Welcome to another edition of Vantage Point, the quarterly economic and markets outlook from the Global Economics and Investment Analysis (GEIA) team. The past three months have seen a dramatic selloff of risky assets, driven largely by a recalibration of expectations
So, let's start. Clearly the global economy, in a constant state of flux, with the post effects of the pandemic, geopolitical tension, mounting inflation, rising interest rates, causing tremendous impact to listed markets. And as we speak to our clients
The global focus on climate change, alongside pandemic challenges and social justice movements, which helped highlight social concerns, have helped drive sustainability activities to the top of the agenda across the corporate world. As BNY Mellon discovered in a recent
Investor relations (IR) teams increasingly field questions for their companies about sustainability topics. According to our most recent edition of Global Trends in Investor Relations, 71.3% of IR teams globally reported in 2019 that ESG/CSR communications with investors are among
Executive Summary Insurance leaders are continuing to eye payment transformation as a strategic imperative in 2022 and beyond, as they navigate challenges fueled by aging legacy systems, high check volumes of traditional payables and receivables, as well as increasing client
Recent stresses in U.S. Treasury trading have been incongruous with a market that holds itself out as the deepest and most liquid in the world. For those trading in March 2020, it was surprising how the pandemic-induced panic threatened the
Creating the Right Test Case We selected the Mellon Global Infrastructure Dividend Focus Fund for testing out that approach. As a popular mutual fund reflecting investors’ current preferences, it has a broad dual mandate — exposure to infrastructure and a
Getting Ready for Growth Many alternative asset managers will have to adjust course to capitalize on greater investor demand, emphasizing bespoke solutions, compelling strategies and greater transparency Strategy and Competition The majority of alternative asset manager respondents expect increased allocations
Aging nations favor bonds and defined-benefit pensions The Netherlands is pursuing a first-of-a-kind transition to put its $1.9 trillion pension system on a more sustainable path. The move offers plenty of scope for opportunity, but also carries its fair share
In 1998, computer scientist Nicholas Szabo developed a novel, decentralized digital currency called “bit gold” based on a system mathematicians hypothesized nearly a decade prior. The development of this system was a precursor of what we know now as blockchain.2
The european union’s unprecedented foray into the capital markets promises not only a green, digital transformation for the region but potentially a new era of supranational borrowing. For much of the past nine months officials at the European Commission have
The specter of market volatility brought on by large-scale events, such as global pandemicrelated lockdowns in early 2020, has had a strong influence on investor approaches to their portfolios. Investors are responding by building resilience into their portfolios to navigate
Insight Investment – November 2020 We believe the economic shock caused by the coronavirus crisis, and the policy response it triggered, are of sufficient magnitude to warrant a reassessment of the investment landscape – and that frames our outlook for
Aerial View Over the past 20 years, academics, policymakers and market participants have begun to debate the future of the US dollar (USD) as the world’s premier reserve currency, or the currency in which global …
Universities, philanthropies, cultural institutions and other not-for-profit organizations are contending with significant financial hardship brought on by COVID-19. From shuttered classrooms and museums, to suspended fundraising activities and hospital procedures, many of these institutions may see a shortfall in revenue
Examining the resiliency of US government securities repo and clearance settlement in Q1 2020 The volatility between late February and early April 2020 was the largest stress event international capital markets have witnessed since the 2007-2009 global financial crisis. Unlike
Aerial View The 2020 U.S. presidential election is now less than 100 days away. Will voters choose to keep Republican President Donald Trump in office for another four years, or will they elect …
When the COVID-19 market panic deepened in March, the Federal Reserve put together a $600 billion Main Street lending program to help small- and medium-sized businesses cope as the U.S. economy was tumbling into recession. But there was a wrinkle. Initially,
Since the last edition of Vantage Point, Covid-19 has wreaked both human and economic devastation on the world. At the time of writing (June 25), worldwide over 9 million people have contracted the disease and more than 450,000 have died
Aerial View The economy is facing three kinds of headwinds from COVID-19 simultaneously: a demand shock as spending drops, a supply shock as …
The ESG Movement has Grown Even before COVID-19 exposed the importance of public health policies to investments, there were reasons to think about environmental, social responsibility and corporate governance (ESG) issues when making investment decisions. There were Australia’s wildfires, which
The least glamorous investments on Wall Street have become some of the hottest places to be as investors worry about the unpredictable duration of the COVID-19 crisis and the risk that recent rallies in stocks and other risky assets may
The coronavirus pandemic has upended long-held conventions in markets, from models that blew up and valuations that plummeted to policy moves that were previously deemed inconceivable. Whatever investors thought would end the longest bull market on record, few could have
As the COVID-19 coronavirus pandemic continues to shake markets, major efforts from Central Banks and governments around the world aim to curtail negative economic repercussions. Are we headed towards a recession? How are major asset classes faring? Experts from Mellon
On an annual basis, BNY Mellon Investor Solutions, LLC develops capital market return assumptions for approximately 50 asset classes around the world. The assumptions are based on a 10-year investment time horizon and are intended to guide investors in developing their
As the global economy grapples with the fallout from the coronavirus, markets are weighing the efficacy of emergency fed liquidity and expectations that the central bank will use its full range of tools. “The Fed’s goal in taking this action…
March 2020
Aerial View The last few weeks have been remarkable. The S&P500 staged a significant correction in late February the likes of which have not been observed since August 2011. While any unexpected jolt to the stock market tests investors’ nerves,
Five reasons to tokenize Simpler, faster and cheaper capital raising Access to broader swath of potential investors More transparency for all parties to a transaction Instant settlement with finality and improved liquidity Potential elimination of unnecessary middlemen
Morning Briefing Since the middle of October, Real Clear Politics' Democratic presidential nomination betting average (see chart) for Elizabeth Warren has declined from over 50% to just 23%. Meanwhile, Joe Biden’s betting average increased from just below 20% to 25%
INTRODUCTION Global growth is likely to be around 3% in 2020, and the balance of risks is negative. That said, compared with a bond market that is still pricing in a US recession, or something close to it, our outlook
There may be more risk to the markets in the next few months than is currently priced in… Yet the policy implications of a win on either side are even more dramatic than they have been in previous years. to
Points of View Equities – 2020 earnings growth estimates have held steady so far between 9–11%. This is more in line with our “Turning the Corner” scenario where economic growth improves in 2020. Risk sentiment as measured by implied volatility remains at subdued levels largely driven by global central
As it continues to bounce back from a prolonged period of contraction, the Japanese economy offers an attractive opportunity set to investors, says Miyuki Kashima, Head of Japanese Equities, BNY Mellon Asset Management Japan Limited. Economic growth has seen Japan go from
A roadmap for the upcoming weeks projects meaningful mood swings Tentative ranges for cable: 1.10 for worst case; 1.30 for orderly exit; 1.55 for remain Ostensible inactivity between October 2 and October 14 may add more uncertainty to the process
The final departure from 10 Downing Street is the defining visual that accompanies the end of every British premiership. Whether it’s the last wave in front of the famous black door, an emotional resignation from the podium, or the tear-stained
I f there is one thing that whips up Wall Street, it is any sort of bottle- neck in ordinarily placid short-term money markets. So in September, when getting overnight loans in exchange for US Treasuries suddenly became expensive—much sooner
I f there is one thing that whips up Wall Street, it is any sort of bottleneck in ordinarily placid short-term money markets. So in September, when getting overnight loans in exchange for US Treasuries suddenly became expensive—much sooner in
Executive Summary While flows into Exchange-Traded Funds (ETFs) and mutual funds tend to get headlines, an area demonstrating consistent growth is the Managed Account Industry. This industry now represents almost $2 trillion in assets under management (AUM) in the United
Aerial View Magazine Conventional wisdom, supported by nearly a century of economic history, indicates that independent control over monetary policy—insulated from the direct interference and control of political leaders—delivers better economic outcomes. Recently, however, that independence has been threatened, as
The value of ETFs issued globally was almost €5 trillion at the end of 2018—making them one of the greatest success stories in the investment world in recent decades. Although the US still dominates the ETF market, 15% of global
