Kredietexpert Stéphane Rüegg bespreekt wat zijn klanten denken, de ontluikende groene obligatiemarkt en zijn zeer persoonlijke kijk op verantwoord beleggen. Waarom is duurzaam beleggen belangrijk voor u? Ik werd me daarvan bewust op verschillende manieren. Eerst en vooral herinner ik
Macro / government bonds All three major central banks making decisions last week have demonstrated that they no longer regard the downside risks to economic activity over the coming months as outweighing the need to address inflation pressure.
I wonder if anyone at the start of the year would have predicted that US inflation would have risen to 6.8% y/y in November? If we had expected this, you would have thought that bond yields would have traded at
Core government bond yields were lower and yield curves flatter last week (see chart of the week). More hawkish rhetoric from the recently reappointed Chair of the US Federal Reserve has upset the short end of markets, forcing yields higher.
If you are looking for market volatility to spice up your week then core government bond markets would be a good place to start. After last weeks ‘communication breakdown’ between central banks and investors, and more dovish policy response, that
Core government bond markets were a little calmer last week with yields a shade lower. This week should be relatively quiet as the US celebrates Thanksgiving on Thursday. We also expect the US President to announce if Jay Powell will
The changing landscape The resilience and adaptability of the asset class during the ongoing COVID-19 pandemic has helped to cement private credit’s permanence in the minds of strategic asset allocators, with private markets proving their value to investors in balancing
US FIXED INCOME 2022 OUTLOOK That’s how the 2022 economic forecasts feel when compared to 2021. For ’22, we see real growth running about 4%, or two times trend. That’s typically great performance, but when you’re coming off a phenomenal
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
With debt default rates at exceptionally low levels on both sides of the Atlantic, investors might be forgiven for thinking that the market for distressed credit would be very subdued. But there are strategies that can find and take advantage
US equities printed a new high as we end October while bonds remain mired in volatility with yields near their highs for the last 12 months – see chart of the week. Meanwhile, risk markets in fixed income are locked
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
Fixed income funds invest in bonds whose price is influenced by movements in interest rates, changes in the credit rating of bond issuers, and other factors such as inflation and market dynamics. In general, as interest rates rise the price
In Credit: US bond yields have stabilsed this quarter after the material sell-off in the first quarter. It has been a different story for yields in Europe, however, which have trended higher. This reflects a heavy supply schedule and speculation
China’s regulatory actions, driven by Beijing’s financial, security, and social objectives, have injected volatility into the credit market over the past year. Key themes such as the mantra of housing for living in, not speculation; reducing the education cost burden
The ‘excitement’ of an FOMC meeting, shenanigans at Evergrande, revised forecasts from the OECD and the German general election led to a rise in yields last week (see chart of the week). The US Federal Reserve presented a more hawkish
Theme of the month: EU Fit for 55 In July, the EU announced “Fit for 55” – a suite of measures to deliver a 55% reduction in GHG emissions by 2030 from 1990 levels. It included an enhancement of the
Core government bond markets ended the week with a better tone, even as the European Central Bank announced its intentions to modestly reduce asset purchases, and as the ECB increased forecasts for economic growth and for inflation. The ECB notched
Government bond yields generally moved higher last week; the spectre of a withdrawal of ultraeasy policy conditions remains front and centre of attention. Indeed, we will hear more on this subject perhaps this week from Europe when the European Central
In Credit AUGUST 2021 As we start a new month, we can reflect on another better week and month for core government bonds. US yields fell by around 25bps in July. The fall was led by declining real yields, which
We borrowed a line from a Pink Floyd song for this week’s title, which seemed to sum up the mood in markets last week. The rise in cases of the delta variant of Covid brings fears of a pause in
Because our multi‑sector strategies have the flexibility to invest across many fixed income sectors, we use a range of quantitative and fundamental inputs to inform our sector allocations. The sector strategy advisory group (SSAG) model is one of these tools.
In Credit: Bond markets continue to lack much direction. It was inflation week in the US. As expected, the headline rate of consumer price inflation came in at 5.4%, unchanged from the prior month (see Chart of the week), while
In Credit: Inflation had long been expected to rise – and rise it has! Data released from the US and UK last week showed a jump in prices that exceeded (increased) expectations by some margin. Starting in the US, Consumer
In Credit: Government bonds seem to be struggling for direction amid a summer lull and after a period of strong performance. US 10-year yields have fallen from around 1.75% at the end of March 2021 to around 1.29% at the
Multi Asset Credit (MAC) en Absolute Return Fixed Income-strategieën concurreren al lang om de aandacht van beleggers. Maar is het zinvol de ene optie te kiezen boven de andere? Wanneer de rentevoeten zeer laag of zelfs negatief zijn, zijn positieve
SUMMARY The global economy is in a mid-cycle expansion, following peaks in policy support and growth, and what is likely a transitory spike in inflation. We expect global growth to moderate to a still abovetrend pace in 2022. Growth-oriented assets, such as equities
Quarter one of this year was a miserable experience for the bond market. There was just too much ‘good news’ flowing around the system to contain bond yields. The Biden fiscal push, the successful rollout of Covid-19 vaccines and, of
In credit: We saw some key economic data last week, in what felt like a seasonal lull for a number of European countries given the late May bank holiday and a week of school holidays. In the UK, sterling hit
In Credit: The key theme this year for markets has been the trend higher in inflation expectations and the question of whether the US economy is overheating. This has prompted a rise in government bond yields, with German and UK
In Credit: The upward trend of rising inflation expectations continues and is now at 2.5% at the 10-year point of the curve and 2.8% for two years. The US non-farm payroll / employment sector report released last Friday revealed that
In Credit: Government bond yields were little moved last week. The benchmark US 10-year note ended the week with a yield of 1.58%, barely moved from a week earlier. Inflation expectations, which have risen materially in the last year and
In Credit Inflation arrived in the US last week. There was also a bumper crop of strong economic data releases. This had been largely expected and remarkably yields fell to the lowest level in a month with the US 10-year
There has been a degree more stability or calm in core government markets over the last couple of weeks. This comes after a very difficult start to the year, especially in the US.
The past decade has seen the use of multi-factor investing in corporate bonds increase significantly. Easier access to corporate bond data along and a growing body of research has enabled managers to develop robust factor-based …
Core government bond yields were lower and curves were flatter after a volatile week which, at one point, saw US and Europe diverge with US treasuries bear steepening while European government bonds experienced a bull flattening on Wednesday. Markets were caught between inflation concerns …
For bond markets, this year has been all about rising inflation expectations and more recently real yields. This has pushed yields higher and dented total returns for areas of fixed income with higher levels of interest rate risk. The effect such moves have depends on the interest rate sensitivity (duration) of the …
Why Credit Investors Need to Become Active Duration Managers The importance of duration for credit performance and five ways to improve it. Credit investors typically pay little attention to duration, seeing themselves primarily as bottom‑up investors who specialize in sector and
As mentioned previously, this trend was borne out of rising inflation expectations and augmented by a nudge higher in real rates. If this latter rate is the key discount rate for risk markets such as equities, it helps explains why this market has been …
A pick-up vs. EUR-denominated investment grade bonds of +110 bps, investors lock-in a higher yield in the USD market as hedging costs to EUR remain low …
By nature, the emerging credit market has lower exposure to Covidsensitive sectors (retail, airlines, hospitality, etc.) than its developed markets (DM) peers. This may partly explain why the 2020 default rate …
It was Presidents Day in the US on 15 February and we imagine ex-President Trump will be celebrating more than most after being acquitted in his second impeachment vote. There was, however, less to celebrate in government bond land.
Less interest, in negative interest rates. Markets at a glance – 8 February 2021 It was a game of two halves for macro markets last week. Italy won in the end, with the UK coming last. For Italian bonds, spreads
Columbia Threadneedle Investments provides readers with an in-depth discussion of fixed income assets. One important takeaway is the Biden presidency causing rising inflation expectations.
The success of the Federal Reserve’s emergency intervention in March 2020 played a crucial role in stabilizing and improving liquidity in U.S. credit markets. The cessation of the Fed’s corporate credit facilities, in our opinion, lowers the risk of unintended imbalances within credit markets that could potentially …
The Future in Focus Pivoting from uncertainty to opportunity. The past 12 months have tested the world in ways that were hard to imagine last January. What started as a solid year for equities was turned upside down as the
“Turning to the tasks of our time” Joe Biden, 46th President of the United States Markets at a glance President Biden kicked off his new term with a flurry of executive orders and directives (30) in his first three days
Euro high yield: the opportunity today Credit Outlook The upheavals of 2020 have brought structural changes in the euro high yield (EHY) bond market. So, what has changed, what still applies, and what role can this sector play in European
Brightening Outlook Propels Credit Market Rally Fixed Income Asset Allocation Insights Credit markets continued to rally into December, and valuations now fairly reflect optimism that we are firmly on the path toward economic and earnings recovery. While these conditions would
US bond yields buoyed by the ‘Blue Wave’ In Credit As the US Political landscape evolves (after Democratic Party victories in Georgia) and the risk of increased (bond-financed) government spending grows, US bond yields have also risen materially. This is
