How do you use fixed income derivatives within a portfolio and how do you prepare changes in the market? In this session Neil Schofield looks at Fixed Income risk management, engaging you through Excel activities and interactive questions. You will
Alpha Research organiseert samen met PGIM, Ossiam (een affiliate van Natixis Investment Managers) en State Street SPDR ETF’s een bijeenkomst waarin de vraag over inkomsten en inflatie centraal staat. In twee uur tijd krijgt u een overzicht van de asset
Special Europe: invest in the recovery In a nutshell As the European economy is recovering from the largest economic shock of modern history, we are revising our growth and inflation assumptions to the upside. Although the path to recovery is
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
Capital Markets Monthly Summer is coming to an end in the northern hemisphere. Whether the stock markets will begin to see cooler temperatures following the sharp price increases of these past few months, or conversely, whether we can expect an
Asset allocation: stimulus and vaccine offer enduring support Economic growth has clearly slowed in recent months thanks in large part to the spread of the particularly infectious Delta variant of Covid. Still, with monetary stimulus in plentiful supply and vaccination
Executive Summary: Will the Next Decade Look Like the Last? Help Needed—Traditional Approaches Can No Longer Do It All: While traditional core and core plus fixed income strategies have historically served as a “one-stop shop” allocation to balance risk-seeking allocations,
In recent years we’ve seen a surge of interest in exchange traded funds (ETFs) as a cost efficient and effective way to try and replicate market index performance. But are ETFs as effective as investors think? As part of our
Allocations to Chinese equity and fixed income should stand alone rather than be part of global or emerging market strategies for investors looking for diversification and potential excess returns from the vast opportunity set that Chinese financial assets represent. A
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
The difference between price and inflation The recent jump in inflation reflects an uneven recovery from the pandemic rather than a long-term shift U.S. job growth has been lower than expected even as demand for workers remains robust. Consumer prices
Executive Summary Vaccine-driven reopenings propelled U.S. economic growth in the first half of this year, leading to a significant uptick in inflation. While PIMCO believes that today’s high levels of inflation will likely prove transitory, we believe the Federal Reserve
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
Rising prices for goods and services are one of the biggest risks for investors in conventional government bonds. But there are ways for active managers to generate positive returns from rising – and falling – inflation. The key is to
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
Fixed Income Perspectives: U.S. consumer prices see their largest increase since 2008, topping all estimates. That summarizes headlines about recent inflation data. Since the beginning of this year, our view has been that the change …
Marktvisie ESG-integratie: Klimaatrisico wordt steeds tastbaarder, zowel in de fysieke- als in de beleggingswereld. 2020 was, samen met 2016, het warmste jaar ooit sinds het begin van de metingen in 1880: de (oppervlakte) temperatuur bereikte een niveau van 1,02 graden
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
Een opkomende, wereldwijd belangrijke activaklasse. China is nu de op één na grootste obligatiemarkt ter wereld met een omvang van 15 duizend miljard dollar, net na de VS en vóór Japan [1] , maar telt nog steeds weinig internationale beleggers.
Green Bonds De Franse vastgoedonderneming Gecina heeft recentelijk al haar reguliere obligaties omgezet naar volledig groene (green bond) obligaties. Niet door een herfinanciering, maar door het simpelweg omkatten van de bestaande grijze bonds naar green bonds. De vraag is dan
KEY TAKEAWAYS Markets can readily digest an orderly policy tightening. The US Federal Reserve (Fed) is determined to cement the recovery and will avoid preemptively raising rates. Tapering of asset purchases will take place first but this will be gradual
Asset allocation: Maintaining perspective There is no summer lull for investors this year. The global economy is powering ahead despite the resurgence of Covid-19 infections while inflationary pressures continue to build, particularly in the US. Then there’s renewed upheaval in
Global Investment Views The past weeks have confirmed that phase one of the ‘great recovery’ is now behind us. We have entered a new sequence: PMIs decelerating from their peaks and concerns about the spread of the Delta Covid19 variant
What are minicycles? Before the global financial crisis (GFC), credit cycles typically lasted between five to seven years (Exhibit 1). However, since the GFC, more frequent periods of sharp spread widening followed by spread compression have occurred — what we
Central banks remain in the driving seat for rates markets and the June Fed meeting was the most recent example of how sensitive markets are to even small changes in the outlook for monetary policy. June’s FOMC meeting saw a
We continue to favour staying long equities, and are prepared to increase our exposure in a dip, as investors bask in the sunshine of a global economy in mid-cycle. From a strategic perspective, the current market environment is increasingly challenging
U.S. Treasury yields declined last week despite stronger-than-expected inflation data, as the market moves to price in higher odds of earlier Federal Reserve tightening and somewhat lower longer-term growth and inflation. HIGHLIGHTS Most fixed income sectors performed well, with taxable
House View Restrictions are being lifted in the developed world releasing pent-up demand. Fiscal and monetary policy remains hugely accommodative. This will result in high growth figures in the coming quarters. The pandemic is however far from over as variants
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
We see equities in developed markets (DMs) outside the U.S. as better positioned to capture the …
When we entered the second quarter of 2021, we stated in Allocation Views that “sometimes it is right to just go with the flow, at least for a while.” We thought that “this is perhaps one of those times” when
The economic normalization process is well under way in regions where the vaccine roll-out has been smooth. Inflation numbers and expectations have risen sharply, but we see this as transitory. During the June FOMC meeting, the Fed made a hawkish
The ‘roller coaster ride’ for US bond prices, post FOMC, has started to level out though yields were a little higher last week. The benchmark US 10-year yields around 1.5%. This places market levels close to the mid-point of the
Waters appear calm, but there are strong undercurrents. Large economies are at different stages of their journey towards peak acceleration, but rising…
Fundamentals have continued to recover alongside vaccination efforts and reduced Covid restrictions, as well as fiscal and monetary accommodation driving increased general economic activity. We expect these factors …
Global debt ratios increased by a record amount in 2020. Half was due to rising government debt and the biggest gains were in developed countries. Falling bond yields dampened the rise in debt service ratios but that may not last,
China is de op één na grootste obligatiemarkt ter wereld. Met een omvang van 15 duizend miljard dollar moet het alleen de VS achter zich laten. Naar verwachting zal deze markt nog verder groeien nu Chinese staatsobligaties wereldwijd worden erkend
Better ocean health is vital for addressing climate change. As fixed income investors, we’re seeing growing opportunities to make a difference. Carbon sinks have become pivotal in the fight against climate change. Simply put, they are areas that absorb more
Systematic Fixed Income Outlook: BlackRock’s quant bond experts tackle some hard questions around the recent inflation data. What is behind the headlines? Are rising prices just temporary or the start of something bigger? What does greater inflation uncertainty mean for
The rapid roll-out of vaccinations across the US and the UK, with Europe catching up, pushed developed market PMIs once again to record highs in May. Business activity and new orders have accelerated across both manufacturing and services sectors, business
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
US long-term yields have risen in recent months on expectations of strong economic growth fueled by fiscal stimulus. Eurozone long-term government yields have followed this movement in a limited way, as Eurozone economies have been hit hard by the Covid-19
Five key themes for an uncertain period in fixed income markets. What’s next for fixed income markets? A sharp rise in government bond yields since late 2020 has left many investors questioning how much further this trend has to run, if
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
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
