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 …
Als we dieper ingaan op vastrentende waarden uit opkomende markten ontdekken we variatie in spreiding, zowel over landen als over kapitaalstructuur.
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 …
Core government bond markets remain in a nervous state. The good news about the vaccination roll out (UK and US), the passage of the US fiscal package, the concurrent rise in growth expectations and normalisation of the inflation outlook have conspired to take yields close to where …
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
The new year has awoken the bond market from its slumber. What began as a gradual climb in nominal yields from the summer accelerated in February with the yield on the US 10-year Treasury note briefly topping 1.6%, and significant moves higher globally …
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 …
Webinar – Global Fixed Income Markets: return to Normality? The coronavirus pandemic triggered one of the most severe economic crises since the Lehman Brothers collapse in 2008. Twelve months after the initial Covid-19 shock, Mohammed Kazmi – Portfolio Manager &
Governments everywhere are racing to lock in historically low borrowing costs by issuing ever longer dated debt – in recent years Mexico and Argentina even managed to sell century bonds. That presents several new challenges for fixed income investors. Particularly those who own …
It has not been an easy start to the year for government bonds. Yields are higher around the globe for a second month as can be seen on the ‘Markets at a glance’ table. This means that total returns are
The case for investing at the top of the capital structure. From an investment perspective, which trends do you envisage for private debt markets in 2021? Market trends appear favourable for the asset class on both the supply and the
The shift towards a more sustainable global economy continues to accelerate. At Aegon AM, we believe this secular shift will continue to present opportunities for investors. Entire industries and sectors are evolving as consumers and investors alike demand sustainable solutions, and governments around the world enact regulations to drive sustainability. From …
After a short breather at the end of January, the reflation trade is back. Bond yields have jumped, with 10-year Treasury yields rising 33 basis points and 10- year German Bunds climbing 22 basis points since the beginning of February.
U.S. Treasury yields rose and the yield curve steepened, as economic data came in stronger than expected. Spreads in non-Treasury sectors generally tightened, though emerging markets spreads widened amid brief dollar strength.
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.
What are the key tools for sustainable investing in fixed income? In a recent episode of Refinitiv’s Sustainability Perspectives Podcast, James Rich, senior portfolio manager, outlined different ways to think about investing sustainably in fixed income. Beyond green bonds, learn about the sustainable megatrends and methods for identifying investable themes.
Webinar – What will be the key factors driving EM debt markets in 2021? With three quarters of developed market bonds currently trading at negative yields once adjusted for inflation, there is added impetus for investing in emerging market (EM)
Investors such as pension funds are increasingly seeking investments with a positive impact, and the surge in Covid-19 bond issuance this year indicates that fixed income is the asset class wellpositioned to deliver positive social outcomes.
In the US, reflation on the back of fiscal stimulus and the exit from lockdowns should lead to modestly higher inflation expectations and nominal bond yields. A renewed ‘taper tantrum’ looks unlikely as excess capacity and high unemployment rates will prevent …
While a new year may be underway, at least one thing remains the same: low bond yields. We believe that the challenges and risks this environment presents may not be fully understood by investors. For that reason, we have identified three questions that we believe investors should consider: focusing on the diversification power …
Amid rising optimism, preparing for setbacks as recovery unfolds is prudent. The rollout of vaccinations has bolstered optimism around the outlook for the global economy in 2021. Even so, the trajectory of the pandemic will continue to hold sway over near-term
The trend higher in yields has paused. Inflation expectations have stopped rising in what has been thus far the theme for fixed income markets. As mentioned, though the risk to inflation is heightened by recent US political developments …
Webinar – Managing liquidity in a low yielding environment 20 MINUTES with UBP – Fixed Income Opportunity Focus In a moderate growth and low rate scenario which seems to be prevailing, maintaining liquidity has become extremely costly for investors. Active
Strengthening economic recovery in 2021 would carry risks for bond investors, warns Mark Vaselkiv, chief investment officer, Fixed Income. He says investors will need to be creative in seeking out fixed income sectors—such as floating rate bank loans and emerging market …
Webinar – A Focus on China The Great Instability The Great Instability virtual event series continues into 2021 and BNP Paribas Asset Management is delighted to invite you to join us for the first episode. On 28 January, we host
Key takeaways: 1) We anticipate that the global growth recovery will remain intact as vaccine distribution will allow economies to gradually normalise, 2) Monetary and fiscal policy shall remain accommodative, 3) We expect this to be a positive environment for credit, whilst interest rate markets have room to breathe higher
“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
Webinar – China: de ruwe diamant polijsten China’s snelle binnenlandse en geopolitieke ontwikkelingen en de ruwe diamant van beleggingskansen, verdienen aandacht van beleggers. Tegelijkertijd is China echter nog steeds ondervertegenwoordigd in indices, kent het een volatiele interne markt en de
More than zero: Using emerging markets bonds to optimise portfolios There are a number of reasons many investors do not yet have emerging markets (EM) bonds in their portfolio, including awareness, understanding and difficulty of access. All of this means
It is Martin Luther King Day today and on 20 January Joe Biden will be inaugurated as the 47th and oldest ever President of the United States. There was a degree of stabilisation in rates markets last week after the inflation fears led a sell off. The benchmark 10-year US government …
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
Do Sectors Matter in Fixed Income? Less Than You May Think December 2020 | White Paper Sector-allocation decisions form an integral part of many investment processes, both in equity and fixed income portfolio management. Most benchmark providers in both asset
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
UK Defined Benefit Pension Schemes Should Prepare for Negative Interest Rates T. Rowe Price Insights on Fixed Income Negative interest rates are likely coming to the UK, but you would not know that judging from the markets. Although rates are
There are reasons to expect a slower and less comprehensive vaccine roll-out among EMs than in richer countries, and the fiscal damage done to already-fragile sovereign balance sheets may increase vulnerabilities. But the steady recovery of the asset class since
The role of gilts in portfolios could be impacted. Negative interest rates are likely coming to the UK, but you would not know that judging from the markets. Although rates are widely expected to fall, implied policy rates show that the
Executive Order banning trading in designated Chinese entities increases uncertainty on the horizon and reaffirms importance of diversification. Once characterized by mutual cooperation, the U.S.-China relationship has undergone a significant shift since the onset of the trade war initiated by
Both financial markets, and us, have come a long way since the dark days of spring to the (unseasonally) brighter days of winter. Back in March, as the huge and synchronised shock to economic activity from Covid-191 was met with
The legacy of Covid-19 in emerging markets (EMs) may take some time to become clear. Having lagged advanced economies’ initial surge in cases in March and April, lower income countries experienced highly concerning case growth at the end of the
U.S. Treasury yields closed higher last week, led by longer maturities. Investors were encouraged by positive news related to Brexit, coronavirus vaccines and U.S. fiscal relief efforts. The Federal Reserve (Fed) remained dovish at its December meeting, maintaining asset purchases
What kind of customised solutions are our institutional and sub-advisory clients looking for in today’s yield-starved, default-conscious and ageing world? With developed world government bond yields as low as ever before seen, the traditional diversification into fixed income duration and
We believe the Fed’s accommodative stance will persist for many years, which may prevent yields from rising materially. However, this doesn’t ensure that they will fall, and the risk appears asymmetric given that low yields fail to protect against even
Fantastic vaccine news and a post-election relief rally has left many credit investors asking, “Is there any opportunity left from here?” We believe the answer is yes. The ink spilled in the marketplace about record low yields due to record
T. Rowe Price Insights on Global Fixed Income Credit analysis can reveal value in bank loans, high yield bonds High yield bonds and bank loans (or leveraged loans) represent two forms of noninvestment‑grade credit exposure. Both sectors have various strengths and risks
Outlook 2021 Fidelity International’s outlook for the global economy, multi asset, equities, fixed income and real estate If you are reading this, then you’ve lived through one of the most volatile periods in market history. The year to come may
2021 Global Market Oultook New vaccines could accelerate recovery, boost cyclical sectors The 2020 global pandemic tested the ability of companies and investors to manage their way through an unforeseen and dangerous period. However, T. Rowe Price investment leaders believe the other side
In our 2021 Investment Outlook, we seek to help investors navigate the next phases of the pandemic, the legacy of the lockdowns, and the ensuing economic recovery. We also consider how solutions to the climate crisis can be found at
After contending with the terrible human and economic toll of a pandemic, as well as market volatility reminiscent of the financial crisis, investors could well be forgiven for wondering anxiously: what could 2021 possibly have in store for us?
T. Rowe Price Insights on Global Fixed Income With investors struggling to find much‑needed yield for their portfolios, we believe a strong opportunity remains within emerging market (EM) local bonds. The yields on offer from a number of EM local
