The text opens a discussion around the expectation of financial markets for headline inflation rates to drop significantly towards central bank targets over the next couple of years, maintaining stable inflation expectations in the medium to long term. However, the
In his paper "Currency Hedging Can Boost Yields and Reduce Volatility", T. Rowe Price points out a crucial but often overlooked investment opportunity. He posits that while foreign currency bonds may initially seem less appealing to U.S. investors due to
BlackRock's report "The Great Yield Reset: Bond ETFs and the Generational Opportunity in Fixed Income" presents a groundbreaking shift in the bond investment landscape. Following the tumultuous bond market of the previous year, yields are rejuvenating across most fixed income
The article "How to optimise an allocation to credit markets?" proposes a shift from bonds to Credit Default Swap (CDS) indices for investors seeking to optimise their credit market allocations. The argument is that strategies based on CDS indices have
The text analyzes the benefits and methodology of implementing barbell strategies in Euro (EUR) fixed income markets. It outlines how an inverted yield curve can present opportunities for creating a defensive risk/reward profile with a yield pick-up. These strategies combine
In the original article, "Whether Pause or Pivot, Look to Bonds," the author evaluates the potential benefits of bond allocation in an impending U.S. recession. Given the current market conditions, the author advocates for a selective approach. Bonds are viewed
The text provides an in-depth analysis of the global investment landscape in the wake of the IMF's spring meetings. The main theme of the text is the increasingly complex global economic climate, which is marked by several key trends including
The original document titled "Regime shift: How exposed are corporate bond issuers to higher interest rates?" investigates the impact of increased interest rates on corporate bond issuers. Despite the surge in interest rates over the past year, the corporate bond
T. Rowe Price's "Foundations of Emerging Markets Bond Investing – Four-part anchoring framework fundamental to debt sustainability" offers an in-depth country-specific analysis of debt sustainability. This study is distinguished by its focus on four interrelated components that play a critical
Capital Group's text centers around a shift in the investment landscape from a low yield environment to one marked by higher expected inflation and more cautious central banks. In this changing financial climate, investors have seen high yields in fixed
The theme of the text pertains to current asset allocation decisions amidst a less optimistic economic outlook. The author maintains a preference for fixed income over equities, largely due to anticipated headwinds for corporate earnings and margins from higher interest
"Bonds (and cash) definitely back on the radar screen" by Amundi encapsulates the convoluted dynamics of global markets in the previous month. These dynamics are influenced by various factors, including stress in the US banking sector, uncertainties surrounding the US
The text outlines a pragmatic approach to global asset allocation, given the prevailing economic conditions. It delves into the intricacies of economic forecasts influenced by central banks' tightening, potential banking crises, and geopolitical tensions. A slowdown in growth and continued
Capital Group’s research, "A multi sector approach for reliable income", presents an intriguing case on the dynamics of bond yields in today's volatile economy. In a climate of mounting inflation and economic ambiguity, higher-yielding bonds offer a promising opportunity for
The piece provides an in-depth analysis of the shifting dynamics in the fixed income landscape. It highlights the dramatic shift from a low-yield environment, influenced by the predictable accommodative nature of central banks, to an era of higher expected inflation
Is the long-term case for emerging market debt still intact? The article discusses the state of emerging market (EM) debt amid current macroeconomic conditions. Key points are the strong fundamentals in major EM countries and the undervalued exchange rates in
The text provides a comprehensive exploration of green and social bonds within the context of Environmental, Social, and Governance (ESG) investing. It examines the existing premiums associated with these instruments, asserting a surprising lack of correlation between green and social
Guide to the Markets The text above presents a comprehensive economic and market analysis by the Global Market Insights Strategy Team, led by notable experts such as Nimish Vyas, Vincent Juvyns, and Tilmann Galler. It dives into an array of
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,
Is the long-term case for emerging market debt still intact? In this research paper, Kirstie Spence discusses the outlook for emerging market debt and how it has been impacted by the global economic backdrop. She emphasizes that despite the current
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
What the ‘next normal’ means for fixed income: reimagining core bonds That the ‘next normal’ means for fixed income: reimagining core bonds This article explores the “next normal” for fixed income investments in the post-COVID world. After a long period
The month of March 2023 has been characterized by significant volatility in equities and bond markets, triggered by troubles in US and European banks, which have led to a resurgence of macroeconomic uncertainty. This situation has seen a temporary resurgence
The recent banking crises in the US and Switzerland have sparked concerns about the stability of the global financial system. However, these crises are unlikely to pose a broader threat. Despite this, lending standards are anticipated to tighten and inflation
The main theme of the text revolves around the recent banking crisis and the challenges faced due to policy tightening. The author highlights the Fed's response to regional bank failures, providing liquidity provisions to protect depositors and prevent widespread economic
Expected returns for the next decade In this text, the primary theme revolves around the global economy, financial markets, and investment strategies. The discussion encompasses the calculation of return expectations for the coming five and ten years based on long-term
In "No rest for the leveraged", Allianz Research reveals an alarming trend in business insolvencies, with a predicted increase of 21% in 2023 and 4% in 2024. Half of the analyzed countries are expected to exceed pre-pandemic insolvency levels by
How Vulnerable is EM Debt to Volatility Spillovers? – Investment Insights This report discusses the recent shocks to the banking system and their impact on emerging market (EM) debt. The report provides insights into two types of EM debt: EM
The Q1 2023 edition of Active Insights explores the idea that "interesting times" may not be so bad for investors. Head of Active Strategies, Colin Reedie, shares his insights on the variables that could determine returns for the rest of
Main theme: The text discusses the recent rise in corporate bond spreads, higher yields offset by lower risk-free yields, and increased default rates in the high-yield sector, and the risk to corporate margins due to increasing costs. Corporate Bond Spreads
Investing in Emerging Market Debt: Benefits of an Active Approach Emerging market debt (EMD) is becoming more popular among investors due to its increased liquidity and diversified ownership base. Despite a challenging 2022, active research-based approaches can help identify attractive
Bank J. Safra Sarasin's investment committee cautions that despite robust economic conditions and strong labor and retail sales data, the risk of a US recession in the next 12 months remains high, forcing market participants to take a closer look
Global high yield strategies offer numerous benefits that investors should consider when investing in different regions. While regional economic growth and relative value are essential allocation factors, active global strategies can generate alpha and total return. In addition, structural nuances,
The European banking sector remains stable and covered bonds continue to be a reliable investment option. With close to EUR 30bn of benchmark issuance in the first three weeks of January, it's clear that investors are turning to covered bonds
he Fisch Asset Management report for March 2023 highlights the "Anti-Goldilocks" environment, where financial markets are behaving as if they were in a "Goldilocks environment" with moderate economic growth, rapidly falling inflation, and an imminent easing of monetary policy. However,
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.
Key takeaways 60/40 portfolios have certainly seen better times, having recorded their worst-performing year since 2008. A turbulent 2022, however, could be the precursor for a brighter future especially for investors looking to balance long-term growth of capital, conservation of
Global growth remains resilient, but the tightening of central bank policies is expected to impact economic growth and earnings outlook in the latter half of the year. The US Federal Reserve and other central banks are hawkish due to services
This is a summary of the “Quarterly macro and market insights” report from Capital Group’s fixed income team. The report indicates that the outlook for bonds remains positive despite concerns about global growth. The global economy is expected to weaken
The alternative fixed income asset class offers investors a diverse range of investment options, including private debt, consumer loans, mortgage investments, insured loans, SME loans, infrastructure debt, and asset-backed securities (ABS). These assets have the potential to provide higher yields
The US loan market saw a disappointing year due to economic headwinds and negative credit rating migration, leading to lower M&A activity and slow new loan creation. While Q4 showed stability, with some increase in loan issuance, it favored stronger
BlackRock suggests viewing cash and short-term investments as a separate asset class that can deliver attractive risk-adjusted returns, stability, and liquidity in a fixed income portfolio. Effective segmentation strategies can help individual and institutional investors maximize returns on cash holdings.
Introduction: The case for fixed income is strong, but which segments of fixed income should investors consider? The answer depends on their specific needs and objectives. The global macro environment is becoming more supportive and valuations have improved considerably. From
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. Guy: What a difference a year
MACRO ▪ The failures of SVB and Signature Bank reveal fragilities within the U.S. banking system, particularly as it pertains to regional insitutitions (see below). Yet, we believe the situation presents some positive takeaways from a bondholder perspective. The situation
After so many years of rock bottom rates, fixed income investing is back in vogue. It took a pandemic, extraordinary fiscal policies, and of course inflation – but income is back. Depending on where you look central banks are accused
• ETFs posted $516mn of net inflows last week. Equity gathered $890mn while Money Market exposures attracted $105mn. • Fixed Income weathered …
Following a sharp sell-off in bonds over the course of 2022, this piece uses five charts from the Guide to the Markets to explain why we now see some of the most exciting opportunities in fixed income in over a
