Flash update: Ever since 2014, deposit rates in Europe have been negative, creating a headache for investors with this phenomenon unlikely to change in the near future. Current market pricing, for instance, does not have the deposit rate returning to
Downside risk management is crucial. Volatility and low yields are likely to persist over the next few years as the global economy recovers from the shock of the coronavirus. Navigating this environment will be difficult, particularly as returns from equities
Volatility in interest rates year-to-date has unevenly impacted credit markets. Investment grade credit (IG) weakened in sympathy with sovereign yields, especially in high quality and long duration paper. IG bonds were down -3.6% in the U.S. year-to-date, and -0.5% in
In April T. Rowe Price published an article named “Why ESG Factors Matter in Asia Credit Investing”. In the article, they discuss the upcoming importance of ESG factors when looking at Asian credit. T. Rowe Price expects that the ESG
The return of volatility to China markets. China’s equity markets have been roiled by a combination of concerns in recent weeks, culminating in the fallout from the Archegos family office liquidations in late March. However, this volatility has retraced …
In a recent publication by Janus Henderson they ask the question if the recent rise in rates is sustainable. They state that the recent rise in rates has made a couple things clear, namely: The recent rise is undoing the even faster decline from last year and secondly that the initial …
In its meeting last week, the Bank of Japan (BoJ) announced several changes in its monetary policy framework, but also confirmed its policy to keep yields under control. While other government bond markets have seen quite some volatility in the …
Rising global bond yields and interest rate volatility have been dominant themes in fixed income markets so far this year. In our latest investment team meetings, we discussed how likely these trends are to continue—and the potential implications for bond markets and central bank policies if they do.
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 …
2021 began with renewed bouts of volatility with a tug of war emerging between concerns over slow vaccine rollouts especially on the continent and delays in US fiscal support against positive earnings trends.
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 …
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
In an environment marked by rapid market swings, investors looking to consistently outperform will have to increase their emphasis on downside protection while maintaining their upside participation.
Q&A with Rob Neithart, Fixed Income Portfolio Manager Based in Los Angeles We have experienced an extraordinary year so far. How did GHIO navigate the volatility and what have you done in the portfolio since then? Going into the period of
Global Investing Of course, the impact of next week’s elections in the US goes well beyond the economic and financial realm, but from our narrow angle, we will follow the results across two dimensions. One is volatility: whether a winner
Of course, the impact of next week’s elections in the US goes well beyond the economic and financial realm, but from our narrow angle, we will follow the results across two dimensions. One is volatility: whether a winner emerges quickly
Above-average equity volatility continued in October, despite a decline from last month’s level for the S&P 500 and most of our reported indices. The short-term trend was less encouraging: much of October’s volatility occurred during a choppy final week as
Investment Insights – US elections: an insider’s view To briefly re-cap how the US presidential election works: it is decided not by the popular vote but by the electoral college vote. The successful candidate in each state takes all the
Markets | October 2020 While every US presidential election is contentious, this year’s race seems especially divisive. Partisanship is extreme, and the difference between Donald Trump and Joe Biden in approach, personality and behaviour is stark. The charged rhetoric may
September 2020 Bitcoin Volatility Report – Sept. kicked off with bitcoin’s annualized volatility touching a 5-week low of 38.8%, only to then rally above 50% on Sept. 3, bounce between 50% and 56%, and snap a 5-month downtrend by concluding
CROSS ASSET Investment Strategy Monthly #10 October 2020 Investors have been dealing with rising volatility in equities and initial signs of a fall in the extreme market complacency over the last few months. This is leading to some key divergences
This spring, investors experienced one of the most volatile periods in modern market history. The speed with which financial markets sold off in March, and then rallied following unprecedented steps by the US Federal Reserve (Fed) and the US Treasury,
Since the global financial crisis, interest rates have been anchored at unprecedented lows. At the same time, stock and bond investments have produced positive returns along with bouts of significant volatility. This has left many investors questioning long-held return expectations
Since the global financial crisis, interest rates have been anchored at unprecedented lows. At the same time, stock and bond investments have produced positive returns along with bouts of significant volatility. This has left many investors questioning long-held return expectations
Investment Insights The Capital Group US Corporate Bond strategy showed tremendous resilience through the worst of the volatility experienced towards the end of the 2020 first quarter. In this paper, we take a closer look at this strategy and how
#39 September is a busy month for webinar-watchers! A lot of subjects are discussed, for example “Modern Monetary Theory” or “Small Caps“. A lot of research was posted last week and in this blogpost we will highlight a few we
Equities | September 2020 Following an eight-year term, Shinzo Abe announced he will stand down as Prime Minister of Japan due to a deterioration in his physical health. Japan’s Topix Index dropped around 2.5% in reaction to the news on
Drastic volatility hit the U.S. stock market in the first half of 2020. The S&P 500® declined by 3.1%, with negative returns also posted by the S&P MidCap 400® (-12.8%) and the S&P SmallCap 600® (-17.9%). The S&P 500 reached
Renewed equity market volatility highlights the need for portfolio breadth. U.S. markets have sold off sharply after reaching record highs, driven by a correction in large‑cap technology stocks. With equity markets showing resilience throughout the summer, investors have raised concerns about market
Weekly commentary We see a higher inflation regime in the medium term after a decade of inflation persistently undershooting central bank targets. Three new forces are at play: rising global production cost, new central bank policy frameworks that allow for …
August 2020 Bitcoin Volatility Report • A surge in volatility in late-July trickled into August and subsequently drove annualized volatility up to an intramonth high of 60% on August 25, in addition to a +53% jump MoM in volume traded.
#36 It was a bit quiet in webinar-world the past month, but this month our calendar is quite busy again. For example, next week Capital Group hosts a webinar called “10 investment themes for the next 10 years“. The week
Examining the resiliency of US government securities repo and clearance settlement in Q1 2020 The volatility between late February and early April 2020 was the largest stress event international capital markets have witnessed since the 2007-2009 global financial crisis. Unlike
Wederom staat Argentinië aan de rand van een schuldencrisis. De lage waarderingen van effecten bieden instapkansen, maar beleggers moeten zich wel instellen op grote volatiliteit. Een positieve uitkomst in de opgeschorte onderhandelingen met internationale …
Webinar – Factor Performance Review and Insight Join our webinar for analysis and examination of the impact that COVID-19 volatility has had on regional factor performance and factor valuations. Philip Lawlor, managing director, Global Markets Research, and Marlies van Boven,
How interest rates could remain at emergency levels for a sustained period. KEY INSIGHTS Central banks are likely to remain cautious for some time, keeping the short end of developed government bond curves anchored. Longer-dated government bonds could face greater volatility
Risk Insights Series We are in a new era of extreme volatility that is leaving investors searching for new ways to achieve the same portfolio objectives. In an environment marked by …
Volatility related to the COVID-19 outbreak and dramatic oil price decline in Q1 2020 precipitated a …
Webinar – Green Bonds: What happens to green when markets turn mean? The recent bond market sell-off caused by the Covid19 pandemic revealed that Green Bonds held up remarkably well with just half of the losses versus the broader corporate
Webinar – Long-Term Equity Investing in Volatile Markets Join Alex Morozov, Morningstar’s Head of the European Equity research team, as he provides broad assessment of equities’ long-term attractiveness in a highly uncertain world as well as an overview of Morningstar
Webinar – Long-Term Equity Investing in Volatile Markets Join Alex Morozov, Morningstar’s Head of the European Equity research team, as he provides broad assessment of equities’ long-term attractiveness in a highly uncertain world as well as an overview of Morningstar
Volatility related to the COVID-19 outbreak and dramatic oil price decline in Q1 2020 precipitated a …
Webinar – Emerging Market Debt As uncertainty continues to cloud global markets, Finisterre Capital’s Damien Buchet, CIO Total Return Strategy, will share his outlook for emerging market debt and his expectations for the short and medium term. He will discuss
"For every complex problem there is an answer that is clear, simple, and wrong." Hedging equity portfolios against losses has become crucial for many equity asset owners after the long rally of 2009-2019 The rapid recovery following the Global Financial Crisis
Volatility related to the COVID-19 outbreak and dramatic oil price decline in Q1 2020 precipitated a …
Webinar – US equity focus: A veteran Capital Group Portfolio Manager’s view How should investors navigate US equity markets during this volatile period? Which sectors will be hardest hit, and is this a buying opportunity for long-term investors? Veteran portfolio
Investment Insights – Q&A In this Q&A, Capital Group fixed income investment director James Blair discusses the characteristics of emerging market debt, how investors could approach investing in the asset class and the US Federal Reserve (Fed)’s policy response to
In just five weeks in the first quarter of 2020, the US high-yield market witnessed its fastest sell-off of significant magnitude on record. Then, after March 23, the market turned up strongly; the average spread on …
Global Market Outlook Volatility illustrates value of diversified allocations As of 27 February, global equities were down -7.5% since the start of 2020 while Corporate and EM bonds returned 1.1% and 1.7% respectively, as lower US Treasury yields led prices
The decision over which factors to allocate to, and in what magnitude, has a significant impact on investment outcomes and is an important consideration for investors employing a factor approach to achieve investment objectives. It is analogous to the asset
