Fixed Income
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White papersEnabling global debt investors to align investment choices with values
An increasing number of investors want to align their portfolios with their investment values and beliefs. One approach to accomplishing this objective is to select issuers based on their impact on society and the environment.
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White papers
Decarbonising fixed income investment
As investors increasingly look to manage the carbon exposure in their portfolios, it is critical that they have the right tools. There are many ways investors can address the carbon exposure in their portfolios, including explicit divestment, tilting, optimisation and shifting assets toward companies that are developing greener solutions.
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White papers
Asset Class Returns Forecasts - Q3 2022
A combination of sustained inflation and mounting recession fears, interlinked with the geopolitical situation, are the main drivers affecting the current and forward-looking macro environments. The bulk of the uncertainty is in the short to medium term.
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White papers
Geopolitics vs. the race to net zero
The Ukraine crisis is a horrendous tragedy and the war will have a considerable impact on the European and global economy. It has brought sharply into focus the fragility of supply chains and energy security - which has manifested in runaway inflation.
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White papers
Fixed Income Insights (Canada Edition) - August 2022
Global bond markets were dominated in July by concerns over the severity of the global economic downturn and hopes that central banks front-loading interest rate hikes would mean a quicker end to the tightening cycle. A broad relief rally in global bonds reversed some of the YTD underperformance.
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White papers
Canada Ex Fossil Fuels Bond Index Series
As investors increasingly look to address carbon-related risks in their portfolios, it is critical that they have access to the right tools. Specifically, there are several ways investors can manage fossil fuels exposure in their portfolios, which includes explicit divestment, tilting, optimization and shifting assets towards companies that are developing greener solutions.
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White papers
Fixed Income Insights (China Edition) - August 2022
Chinese government bond returns were modest in July, compared to their global peers, following concerns over the global economic downturn. YTD Chinese $ high yield credit losses deepened compared to those of US HY, which rallied.
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White papers
Fixed Income Insights - August 2022
Global bond markets were dominated in July by concerns over the severity of the global economic downturn and hopes that central banks front-loading interest rate hikes would mean a quicker end to the tightening cycle. A broad relief rally in global bonds reversed some of the YTD underperformance.
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White papers
Global Macro Outlook - Third Quarter 2022
The global economic outlook deteriorated sharply in the second quarter and markets are increasingly concerned that higher rates will lead to a recession. This outcome isn’t a certainty, but the probability of slower or negative growth has increased materially as inflation has stayed high.
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White papers
Global Investment Views - August 2022
The first sequence of the double bear markets (in equities and long-term bonds) adjusting to the end of easy money and rising inflation is almost complete. Now, the narrative has changed, with a shift in focus to deceleration of growth vs fears of inflation.
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White papers
July 26-27 FOMC Review: Maintaining a Hawkish Course
The Federal Reserve hiked the fed funds rate by 75bp to 2.25-2.50%, the second consecutive 75bp rate hike. The Fed rate decision was widely expected. With today’s rate hike, the fed funds rate is within the 2 to 3% range of estimates of the long-term “neutral” rate. However, as Chair Powell reminded us during his press conference, policy needs to go beyond neutral into restrictive territory this year in order to reduce inflation.
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White papers
High Yield: When Technicals Create Opportunity
Challenging technical conditions have caused high yield spreads to widen beyond what fundamentals would suggest, potentially setting the stage for strong performance in loans and senior secured bonds, in particular.
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White papers
Three Reasons to Consider CLOs
The combination of wider spreads, strong structural protections and low interest-rate sensitivity presents a potentially compelling case for CLOs.
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White papers
Compass - Mind the lag: recession fears flare too fast
Investors expect central banks will tame inflation whatever the cost, even triggering recession if necessary. This may indeed be policymakers’ approach in the short term as they seek to re-establish their credibility. The European Central Bank’s decision to raise rates by 50 bps is a case in point.
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White papers
Inflation is Hot—and Could Stay Hot
Autumn and winter should bring respite from the northern hemisphere’s punishing summer heatwave, but we don’t think they will ease the inflation temperature.
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White papers
ECB meeting: larger-than-expected rate hike, with new fragmentation tool outlined
What is your take on the July ECB meeting and what could the next steps be?
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White papers
Whiplash!
Hard economic data has remained strong, but recession risks are on the rise. Combined with limited forward guidance from Central Banks, this has left markets to have to decipher what each data print will mean for monetary policy and the path of rates.
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White papers
CLO Monthly Overview
In this monthly report, we provide an overview of the current US CLO market, covering CLO issuance, performance, rating updates, and CLO manager performance. We discuss the current market risks and challenges, and highlight emerging themes and trends.
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White papers
Midyear Strategic Investment Outlook: What Does the Market Move Mean for Strategic Investors?
Many people say they like to be long-term investors. It’s a laudable ambition, but often the short term gets in the way. Our notes typically focus on the strategic horizon, but when the S&P 500 falls by 20%, 10-year Treasury yields rise by 140 basis points and Bitcoin is down by 60% since the start of 2022, strategic investors need to respond.
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White papers
Dealing with income bias in sovereign ESG scores - Sovereign ESG revisited
Although the use of sustainability metrics in sovereign fixed income markets is becoming more mainstream, there is a lack of consensus on how to appropriately assess countries’ environmental, social and governance performance.
