Op donderdag 13 juni organiseert Alpha Research een kennislunch met een culinair menu in het Rosarium te Amsterdam met als thema ‘Welcome to the Bond Renaissance’. Tijdens deze lunchbijeenkomst spreken Flavio Carpenzano, Investment Director van Capital Group en Wernhard Kublun Becerra,
Mike Gitlin, Capital Group’s head of fixed income, sets out the importance of investing in bond funds that deliver on their stated objective. He also explains what differentiates Capital Group from industry peers. We’ve heard you talk about the four
After spending over a decade trying to generate inflation, central banks are today confronted with the highest increases in prices since the 1970s. The return of inflation brings with it an unwelcome dilemma; combat inflation or prioritise financial stability. At
As Pimco's "Fractured Markets, Strong Bonds" report suggests, the economic impacts of tighter central bank policies are emerging, but further inflation declines may be necessary for policy normalization or easing. The main theme of the text revolves around the challenges
Generating income is a key role of fixed income. For investors, the durability of income streams becomes more important amid heightened volatility in both equity and bond markets. The current market environment is characterized by persistent inflation and heightened market
Short Duration Fixed Income: Guy Haselmann, Head of Thought Leadership at MetLife Investment Management, recently sat down with Scott Pavlak, Head of Short Duration Fixed Income, to discuss interest rates and the investment landscape in short duration bonds.
Recessions are painful, no doubt about it. But they are necessary to clean out the excesses of prior growth periods, especially the more or less uninterrupted growth investors have enjoyed over the past decade.
Quarterly macro and market insights: Markets rebounded in the fourth quarter of 2022, closing a year marked by high volatility as the US Federal Reserve (Fed) reset its monetary policy path. US equities gained, credit spreads tightened and interest rate
It’s been a good start to the year, with positive returns on most assets. Upcoming Fed decisions may determine the immediate path of yields. But bonds are back and we think fund flows may push …
As the risk of recession looms large over financial markets, how will securitised credit fare? It’s a growing area of bond markets that has become an important anchor of some actively managed, fixed income portfolios. Portfolio manager Xavier Goss discusses
Investment Outlook for 2023: We have become accustomed to uncertain times. Nonetheless, 2022 was an extremely challenging year in financial markets. The investment rationale for the classic 60% stocks / 40% bonds portfolio is that it will deliver solid if
While most investors are open to equity exposure in a low volatility market, they tend to shy away as volatility increases. To counteract equity volatility, asset managers have traditionally added perceived ‘safe haven’ assets like government bonds to the portfolio.
De reële rendementen zijn in alle klassen van vastrentende waarden sterk gestegen. Dat schept voor beleggers kansen die we al jaren niet meer gezien hebben. Vastrentende waarden maken een heropleving door. Beleggers worden steeds vaker vergoed voor risico's – en
In een verder ongunstige omgeving voor obligatieemittenten en -beleggers ziet de toekomst voor obligaties uit opkomende markten er zonder twijfel groen uit. Stijgende wereldwijde rentes en volatiele markten hebben zwaar gewogen op zowel het aanbod van als de vraag naar
It has been a challenging year for fixed income markets in 2022 amid rising inflation and slowing global growth. While uncertainty is likely to remain elevated, today’s starting yields offer an attractive entry point for long-term investors. Yields across sectors
The investment lexicon is currently dominated by inflation and recession. But what could these terms – so readily used by investors and their advisors – actually …
2022 has not been a great time for bonds. Year-to-date, the Bloomberg Global Aggregate Index and Bloomberg US Treasury Index returned-20% and -13%, respectively. 1 Meanwhile, risky asset classesalso sold off significantly, which has …
De ontwikkeling van de reële obligatierendementen en de break-evenrentes op inflatiebeschermde obligaties geven aan hoe de rest van de vastrentende markt zal presteren. Dat is nu bijzonder relevant. Reële rendementen zijn altijd belangrijk. Maar obligatiebeleggers besteden best extra aandacht aan
In the last century, the correlation of equities to bonds was positive; in recent decades, however, it has been negative. Currently, though, it is rising again; a correlation of less than +0.5 is positive for equities, although it results in
May’s reprieve proved short-lived as recession joined inflation fears pushing equity/bond prices lower in June. Concerns have risen as the increasingly hawkish Fed rhetoric at its June meeting suggests a willingness to trade rising …
Bad news was good news in July. With recession risks becoming more imminent especially for Europe, markets priced in an earlier easing of monetary policy. For the US, rate cuts are priced in as early as end of Q1 2023.
Stock-Bond Correlation Synchronicity Looking across six DMs (Australia, Canada, Germany, Japan, UK, and US), we observe that changes in local currency stock-bond correlations are synchronized (Figure 1).2 Indeed, the correlation of DM local currency stock-bond correlations with US stock-bond correlation
It was a bruising first half of the year for financial market participants, with U.S. and global stocks entering bear market territory while core bonds, generally considered “safe-haven” assets, declined by double digits. Russia’s war on Ukraine continues to warp
The extent of the Q1 drawdown in fixed income markets was both large and rare relative to history. The aftermath of the pandemic and the conflict in Ukraine propelled inflation in developed markets around the world to multi-decade highs. In
Growing uncertainty in markets has rekindled the age-old “active vs. passive” debate. In 2017, PIMCO published results of an exhaustive study that showed active U.S. bond mutual funds had largely outperformed their median passive peers over many years, whereas active
Thanks to a month-end rally, global equities ultimately posted relatively flat returns for the month of May. It was a volatile month for global bonds, too. Yields initially spiked higher, with the 10-year US Treasury yield peaking at 3.2%, while
May provided a reprieve for investors as a late-month rally in both equities and bonds recouped much of the losses seen early in the month. Economic surprises in the US began to miss consensus expectations in May with a sharp
De vastrentende markten zijn steeds volatieler geworden, een trend die zich waarschijnlijk zal voortzetten. Beleggers moeten zich aanpassen. De recente stijging van de obligatierendementen heeft beleggers in vastrentende waarden doen opschrikken. Eén benchmarkindex voor obligaties tekende, ten opzichte van de
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
We kijken naar het belang van de Russische invasie van Oekraïne voor opkomende markten op de middellange en lange termijn. De Russische invasie van Oekraïne heeft de aandelen- en obligatiemarkten wereldwijd in beroering gebracht. Maar in de opkomende markten zullen
With environmental, social and governance (ESG) issues dominating the international policy agenda – and as investor demand for new ESG financial products and services continues to grow – global debt markets, and by extension fixed income portfolios, are about to
April saw the coordinated bond and equity sell-off continue as the ECB joined the increasingly hawkish tone out of the Fed and added to heightening growth concerns in the month. Indeed, this shifting in the growth-inflation balance is …
As the chief research officer of Buckingham Strategic Partners, the issue I am being asked to address most often is about fixed income strategies when yields are at historically low levels and inflation risk is heightened due to the unprecedented
The chance to see a positive resolution between Russia and Ukraine has continued to decline. Conversely, ongoing geopolitical tension appear to be the new reality – so market participants will just have to get used to it. Unlike in recent
Following the bond market’s recent beating, term yields have already priced in aggressive Fed rate hikes, positioning core bonds to effectively diversify credit risk.
Before we go further, we should define our terms. A sustainability-linked bond (SLB) is a general proceeds debt instrument, meaning the issuer does not have to predetermine projects and allocation of proceeds. Instead, the funds may be used for general
Omdat de landen die het universum van obligaties uit opkomende markten vormen zo sterk van elkaar verschillen, moeten beleggers een absolute-return benadering overwegen. Naarmate het economische klimaat in 2021 versomberde en er stormen dreigden voor 2022, maakten beleggers zich steeds
Some might argue that building a sustainable economy is a technological problem. It isn’t. The world is sufficiently stocked with greenhouse gas-reducing technologies such as renewable fuels, carbon capture and energy storage. What it lacks is capital. According to the
Waarom een allocatie in unconstrained fixed incomestrategieën zinvol is voor beleggers. Het valt obligatiebeleggers te vergeven dat ze zich enigszins gedesoriënteerd voelen. Na een decennium van ultralage rentes en negatieve rendementen zit de inflatie …
One year after the discovery of anti-Covid vaccines, financial markets will soon have left (or slowly leaving) the pandemic behind. The economy has not. This is demonstrated by the numerous disruptions among supply chains, on labour markets or on commodity
Hoewel obligaties het moeilijk zullen hebben bij een stijging van de rente, zouden aandelen een behoorlijk eencijferig rendement moeten genereren, omdat sterke bedrijfswinsten een daling van de winstveelvouden van aandelen compenseren.
Building a resilient and balanced portfolio should be a priority for many investors in today’s environment of heightened financial market uncertainty and volatility across a range of asset classes, including equities. With that in mind, now’s a perfect time to
Bond markets, which have been under considerable pressure recently, saw a very sharp turnaround last week as the US Federal Reserve did no more than expected in the US, while the Bank of England kept rates unchanged, and the European
Waarom beleggers in vastrentende waarden die zich zorgen maken over inflatie en stijgende rendementen, moeten overwegen om over te stappen op kortlopende obligaties. Moeten beleggers zich zorgen maken over de inflatie? Er zijn zeker redenen tot bezorgdheid. De knelpunten in
De Aziatische bedrijfsobligatiemarkt is een strategische activaklasse geworden die behoorlijke inkomsten biedt. Cruciaal is dat het ook overwegend om investment-grade bedrijfsobligaties gaat. Obligaties met negatief rendement zouden een tijdelijk fenomeen zijn. Maar zeven jaar nadat ze voor het eerst opdoken
Q4 2021 | Fixed Income Outlook: Global financial markets were mixed during the third quarter. Fixed-income markets faced volatility from multiple directions, including the Federal Reserve’s announced intention to taper monthly bond purchases, the expiration of the U.S. federal debt
After a year of tepid primary issuance – held back by the global pandemic – activity in the Chinese green bond market came roaring back in 2021. The supply of new bonds jumped to a record of $60.7bn year-to-date, crowning
Weekly Economic Perspectives: The Fed is poised to taper asset purchases imminently. Although language in the September meeting minutes maintained some optionality between mid-November and mid-December as start points, we suspect the earlier timeline is more likely. There really is
Uncommon truths: Rising bond yields have recently been associated with falling equity prices (reversing the trend of this century). We think this is a temporary reversal and do not fear higher yields, unless caused by costpush inflation (we would then
August was friendly, which it often hasn’t been in the past. In bonds, little happened overall. Government bonds and investment-grade corporate bonds showed a slightly negative total return, while the high-yield segment, as well as Asian bonds, just made it
