Where We Started, Where We Are, and Where We’re Going
Strong and largely unanticipated macro shocks dominated global markets in 2022, negatively impacting investor returns across a wide range of …
Strong and largely unanticipated macro shocks dominated global markets in 2022, negatively impacting investor returns across a wide range of …
Key takeaways Global factors weighing on emerging market debt in 2022 look likely to continue in 2023, but high starting yields within EM local currency debt could help offset subsequent price volatility, while negative outcomes appear to be priced in
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
Fixed Income Impact portfolios can be flexibly managed to client objectives Increasingly, companies are being measured not only by their earnings and cash flow, but according to the effect their activities have on the environment and society. As a result,
The year 2022 proved to be a year of a great reset for fixed income aficionados. Bond prices are sharply lower and yields are meaningfully higher. Following a nearly 15 year period of ultra-low interest rates that starved pensions and
Weekly as of 6 January 2022: ETFs posted strong net inflows of $3.3bn last week. Fixed Income captured $2.6bn while Equity took in smaller …
The savings and investment plan that one follows over the course of one’s working and retirement life is among the most critical decisions an individual can make. The balance between consumption and savings determines one’s overall quality of life, not
• ETFs posted more than $88bn of net inflows in 2022. Despite a challenging backdrop with elevated inflation, monetary tightening and war in Ukraine, Equity ETFs …
End and Beginning of an Earnings Cycle In brief: Decelerating inflation should provide a tailwind for high quality bonds but will likely bring the earnings cycle to an end for most companies. Companies with uncompetitive products or services facing elevated
After the Gold Rush Institutional investors forced to dig deep for opportunity as they brace for inflation or stagflation in post-pandemic markets. After seeming to recover from the pandemic in 2021, the global economy relapsed into what may be classified as a
Beleggen in het buitenland betekent ook beleggen in een vreemde munt. Dat kan het leven wat ingewikkelder maken, vooral voor obligatiebeleggers. De post-pandemische divergentie in het monetaire beleid van de centrale banken heeft geleid tot sterke schommelingen op de financiële
Peak inflation appears to have arrived. What’s next? The central bank narrative has shifted from a focus on the pace of tightening to the terminal rate required to bring inflation back down to the targeted level. Throughout 2022, expectations for
People my age and up will remember that for all of us (or since 1930, when Pluto was first discovered), the solar system consisted of nine planets. Then in 2006 a monumental event happened when the International Astronomical Union downgraded
• ETFs posted net inflows of $597mn last week. Fixed Income captured $691mn while Equity took in smaller net inflows of …
European senior secured leveraged loans are a growing and integral part of the leveraged finance universe. They offer a 10% yield, have positive exposure to rising interest rates (unlike most fixed income), offer credit protections to manage downside risk, and
Green bonds zijn vooral bekend als instrument om te beleggen in oplossingen om klimaatverandering te beperken. Nu de financiële sector naast klimaat ook verlies van biodiversiteit als urgent materieel risico erkent, is het goed om te zien dat green bonds
In this paper, we investigate the relationship between biodiversity and companies, through the lens of corporate bonds. We focus on acute biodiversity events and address biodiversity as a risk, considering its looming losses. We illustrate the material and tangible operational
In this first podcast series on Alternative Fixed Income and ESG we take a look at ESG integration in Alternative Fixed Income: more specifically in Dutch mortgages, Asset Backed Securities and the Government Related Investment Fund. Why invest in Alternative
As the world faces challenges from weakening growth, inflation and policy tightening, the good news for European High Yield investors is that the underlying strength in the asset class has been on an improving trajectory over the last two decades.
With interest rates higher amid a challenging macro environment, we see a compelling case for bond allocations and are cautious about higher-risk investments
While most investors are open to equity exposure in a low volatility market, they tend to shy away as volatility increases. To counteract equity volatility, asset managers have traditionally added perceived ‘safe haven’ assets like government bonds to the portfolio.
Continued high yield selloffs throughout September and October have put increasing pressure on credit investors. Spreads have blown out to around to 650 bps, which gives an implied default rate 8.6% at the time of writing (Figure 1), approaching the
Credit spreads have narrowed again, especially in the US. Valuations remain more compelling in European credit. While US HY index spread has narrowed, lowest-rated CCC bonds are underperforming and dispersion between issuers is rising. Rising risk-free yields and wider spreads
With only days to go, the wild 2022 midterms continue apace. From Democrats funding “MAGA Republicans” in primary races, to former President Trump trying his hand as kingmaker, to sacrosanct Democrat seats and governorships at risk of being flipped (we’re
Do you know what the US 10-year yield will be in six months’ time? No, seriously. Tell us. We’d love to know. Ever since the Global Financial Crisis, low growth, low inflation and easy monetary policy have allowed investors to
Quarterly Fixed Income Perspectives from Capital Group’s fixed income team: The combination of persistently high inflation, aggressive central banks and tightening financial conditions is weighing on financial markets and global growth outlooks. While valuations across many sectors look compelling after
With fixed income suffering its worst period in 50 years against a backdrop of slowing global growth and rising inflation, we unpack current developments and look at the opportunities this has brought to the asset class. Income opportunities are abundant
KEY POINTS: Forecasted high-yield default rates are up slightly since our April 2022 assessment. A deteriorating macroeconomic outlook and geopolitical risks are driving the forecast. Default rates remain well below long-term default rates.
Central bank watch: The global hiking cycle is in full swing. In our analysis, we expect all central banks, except the Bank of Japan (BoJ) and the People’s Bank of China (PBoC), to remain formidable hawks until at least early
ETFs posted net inflows of $1.2bn last week. Fixed Income ETFs captured $744mn, while Equity gathered smaller net inflows …