Fixed Income – Page 37
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White papersInvesting in fixed income during a hiking cycle
It’s a common preconception that rising interest rates are bad for bonds. While rate hikes are undoubtedly a headwind for fixed income assets, investors tend to overestimate the impact of rising rates and can overlook the benefits of holding bonds as part of a resilient and balanced portfolio.
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White papersBAE Systems case study
BAE Systems has accelerated its societal and environmental ambitions with key commitments regarding its workforce and climate.
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White papersValue Stocks: Inflation Wave Adds Fuel to Recovery
Value stocks outperformed through mid-February as investors repriced expensive growth stocks. Now, mounting inflation and rising interest rates are creating conditions for a broader value recovery, particularly for companies that have solid business fundamentals.
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White papersManaging Duration in Multi-Asset Strategies? Be Dynamic
For most of the past decade, government bonds have contributed positive returns and a note of stability to multi-asset portfolios. But since late 2021, they’ve been much more volatile, as markets digest central banks’ transitions toward tighter monetary policy.
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White papersAs COVID Cases Fade, Services Ready for Upgrade
January U.S. retail sales surprised to the upside, rising 3.8% M/M. The Omicron wave temporarily halted the shift in consumer spending from goods to services, as at-home sectors gained. Meanwhile, restaurant sales fell for a second-consecutive month.
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White papersThe Compelling Case for Global CLOs
The case for global AAA and AA CLOs is simple. As the senior-most, highest-rated tranches in the CLO capital structure, AAA and AA tranches benefit from strong structural protections and historically low defaults. These securities can offer attractive relative and absolute value for global fixed income investors seeking yield-enhancing investments and attractive risk-adjusted returns.
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White papersThe Bond Blog - EM’s Vulnerability to Rising Food Prices and Political Instability
Food items typically have a larger weight in the consumer price index (CPI) basket of emerging markets. Therefore, food price increases might require policy action on the part of central banks if they become a major source of inflation.
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White papersQuick Thoughts: Defensive on the Curve
With the characteristics of low duration, lower volatility, and higher income versus other fixed income asset classes, we believe a mix of short-term high yield and floating rate debt may provide investors some level of defense in a rising interest-rate environment.
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White papersReasons to invest LO Funds – Fallen Angels Recovery
Fallen angels are bond issuances which are downgraded from Investment Grade to High Yield.
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White papersInvestment Symposium Series – Signs of a thaw in China’s property freeze
China’s efforts to tackle soaring home prices and rein in its large property developers have sparked heavy asset price falls and concerns over a credit crunch. However, for our China specialists, there have also been signs of a gradual turnaround.
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White papersEquity Convexity and Unconventional Monetary Policy
In this paper, we intend to gain an understanding of the drivers of stock convexity, also known as gamma.
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White papersSupply Chain Strain in Labor
The second paper in our supply chain series assesses the extent of labor market disruptions in two of the world’s largest economies, and we find modest near-term labor market shortages in the euro area.
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White papersSupply Chain Strain in Manufacturing
One of the most salient economic consequences of the COVID-19 pandemic has been the sharp disruption of global supply chains. The simultaneous emergence of large demand boosts and supply shortages led to sharp price increases.
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White papersPressures Continue to Build for Fed Hikes
U.S. CPI pushed the 10-year U.S. Treasury yield to 2% for the first time since the onset of COVID, and U.S. rate hike expectations increased, with markets pricing in 50% odds of a 50bps hike in March. Meanwhile, European inflation expectations are also edging higher.
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White papersSupply Chain Strain in Commodities
Cyclical commodity prices have surged amidst pressure from multiple fronts. While COVID has certainly exacerbated the typical mismatch between the timing of supply and the growth in demand, the deviation has been further strained by environmental considerations that have limited supply development.
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White papersSupply Chain Strain: Overview
Exploring how disruptions in the manufacturing, labor, and commodities markets may affect inflation and fixed-income investments.
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White papersUS vs. Europe inflation – A tale of two continents
Following the US Federal Reserve’s lead, central banks in Europe turned hawkish in the first week of February. Our inflation-linked bond specialists, however, see important differences in the outlook for inflation in the eurozone compared to the US.
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White papersWhy US Rate Rises Highlight European Fixed-Income Opportunities
Recently, euro-based investors have been able to access higher-yielding US dollar bond markets while hedging their currency risk at low cost. Now, interest rates are set to rise in the US—and we think it’s time for US dollar investors to consider opportunities in euro fixed-income markets.
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White papersBank of England Races to Catch up to Inflation
Central banks around the world, including the US Federal Reserve, have turned more hawkish lately—pivoting from supporting a COVID-ravaged economy to fighting stubbornly high inflation. The Bank of England (BoE) continued that trend at its February meeting.
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White papersFinancing economic growth with private debt
Listed assets no longer suffice to build an investment portfolio. Private debt is becoming central to allocations.
