Fans of the film Toy Story will recognize Buzz Lightyear’s spunky catchphrase “To infinity and beyond!” Well, interest rates around the world are navigating their own journey, voyaging toward the abyss of the yield universe rather than its outer limits,
The ECB has been missing on its inflation target for 10 years The ECB never got to the “tightening window” In 2013, cash was yielding zero, now it is the EUR Aggregate market… …however, the EUR Aggregate market bears some
At a glance: Negative interest rates are classified as unconventional monetary policy tools Some companies may benefit from stimulus measures as the focus shifts to fiscal policy Global investors can still generate a positive return in a world of negative
Ben explains why we maintain our underweight on Japanese equities despite their recent rally. Japanese equities have been the star performer since September – rising more dramatically than their global peers in a response to a perceived thaw in U.S.-China
Chris explores ways to manage your EM allocation, an out of favor, but still appealing asset class. Emerging markets were the darling of investors as recently as the winter of 2019, but now find themselves once again as unloved as
In their September meetings, both the ECB and Fed confirmed their easing mode. The ECB delivered a full monetary policy package (pre-announced in previous months), combining conventional and unconventional tools, together with the introduction of new measures aimed at reducing
s Investors are wrestling between fear and fact at this juncture of the economic cycle. Negative rates. Inverted yield curves. Downbeat sentiment. Will central banks delay tightening or add more stimulus? Is it risk on or risk off? How should
We see third-quarter earnings season offering some limited support to U.S. stocks in the near term, as a growth rebound is months away. Kurt explains. Equities have stumbled this month, as weak economic data has revived recession fears. This comes
During its discussions this month, the investment strategy team spent considerable time debating the outlook for Federal Reserve policy and the path forward for the U.S.- China trade dispute, including its impact on the global growth outlook. Despite the considerable
Economic uncertainty has increased investor focus on the possibility of BBB-rated bonds being downgraded to junk. Investors should weigh this risk with their search for yield. Over the past several months, I have been fielding more questions about the state
On September 12 the Governing Council of the ECB announced an extensive package of the monetary stimulus. It includes a deposit rate cut to -0.5%, the asset purchases program restarting November 1st, two-tier system for banks and easing of the
Mike shares what investors need to know as the final quarter of 2019 kicks off. The fourth quarter of 2019 kicked off with a market selloff and more evidence that a protectionist push is hitting the U.S. industrial sector. How
As one central bank after the other announces cuts to interest rates, we continue to believe that buying duration will be worthwhile for investors, even with yields close to record lows.
We expect a pickup in global growth in the next six to 12 months, as policy stimulus gradually filters through to the real economy. The Fed has cut interest rates, but its noncommittal view on the rate outlook suggests expectations
Elga discusses how central banks could “go direct” and use unprecedented coordination between monetary and fiscal policy to deal with the next downturn. This is the fourth and final blog in a series on the topic of “Dealing with the
Our narrative on the US economy is relatively simple: for now, while the export-driven side of the economy is struggling, and investment in general is impaired by looming uncertainty with the “trade war” at the top rank of risks, the
After a difficult summer for risk assets, investors returned from their holidays in a bullish mood and drove equities higher in September, leaving global equities broadly flat for the quarter. The quarter was marked by a continued slowdown in the
Elga explains why we see a growth pickup looming on the horizon. Hint: Watch the transmission of financial conditions. An expected dovish pivot by central banks has materialized. Now what? Financial conditions in key developed economies have become more accommodative
Investment Insights Blue Paper The backdrop for global high yield Theme 1: Central bank dovishness Speculative grade bonds have been among the major benefi ciaries of the rapid turn of both Fed and ECB monetary policy stances to much more
On 18 September the Federal Reserve cut interest rates by 25bps. The rate cut was already priced in by markets. But the FOMC lacks consensus on the path ahead for monetary policy. Less than half of the FOMC participants see
Rick Rieder and Russ Brownback highlight their view that effective monetary and fiscal policy in the 21st Century needs to draw not only traditional economic theory, but also from the lessons of finance and other disciplines. We think the evidence
Central banks provided the motive force that drove the good returns in developed market equities and bonds since the Great Financial Crisis. Policies that were intended to push against the risks of deflation brought us record low bond yields, negative
The Fed cut rates, but the market expects more: As expected the Federal Reserve lowered its target range for the Federal Funds rate by 25 basis points, and now the market anticipates as many as three more cuts by the
While the most recent US rate cut was widely expected by markets, there appears to be a lack of consensus among Fed officials as to what happens next. Fidelity Strategic Bond Fund co-managers Tim Foster and Claudio Ferrarese give their
The Federal Reserve cut interest rates by 25 basis points at its September meeting — the second cut this year. This easy monetary policy is thanks in part to low inflation. But why has inflation remained so low, especially in
The integration of #ESG criteria often has a greater impact for emerging countries. Find out why in an interview with our expert #Karine_Jesiolowski (via @allnews_ch).
Fresh #StarkieBlog! https://t.co/YZrzQpIlIQ
Low interest rates drive housing market -> https://t.co/XjhuRim2P7 #Interest #mortgages via @ABNAMROeconomen
