Fixed Income – Page 4
-
White papers
Growth is local, inflation is global
An unexpectedly high US inflation report for March suggests that the Federal Reserve may turn less accommodative and postpone interest rate cuts. However, there is an aspect of inflation that may not be widely appreciated: its relative disconnection from local influences. In this week’s Simply put, we explore how significant the global trend of disinflation may be for the Fed.
-
White papers
Implementation Alpha: Adding Value in Indexed Fixed Income
Achieving benchmark performance in an indexed fixed income portfolio requires more than a passive approach. Read about State Street Global Advisors techniques to exploit market inefficiencies and deliver what we call ‘implementation alpha’.
-
White papers
Fixed Income Outlook – Be selective on emerging market debt
Given the recent strong performance for emerging market bonds, we have tempered our optimism about the potential for further spread tightening among the higher-rated segments. We remain, however, constructive on the asset class as a whole and still see attractive opportunities among lower-rated sovereign bonds, as well as selected local currency bonds.
-
White papers
With trillions looking to come off the subs bench is this the year of the bond?
After an aggressive global rate hiking cycle trillions of dollars are poised to re-enter the market once central banks begin to ease, but risks still remain. The fixed income experts discuss generating returns despite market noise, including taking advantage of the expanding corporate bond market.
-
White papers
Fixed Income Outlook – Corporate bonds still a bright spot
We expect corporate bonds to deliver positive returns in the coming quarters, primarily due to the attractive yields. With money market rates becoming less attractive as interest rate cuts loom, further supporting inflows into corporate bonds look likely.
-
White papers
Five Over Five - The Structural Shifts Taking Place in EM
Following years of underperformance, we explore five structural factors that should support the emerging markets over the next five years and possibly beyond.
-
White papers
Ahead of the curve: Resilience amid divergence
While economies have proved remarkably resilient in the face of aggressive interest rate hikes, we have started to see divergence more recently. Countries such as the US, India and Japan have proved stronger than others – including Europe, the UK and China – driven mainly by differences in consumption, investment, and fiscal policies.
-
White papers
Fixed income: our medium-term playbook
Macro conditions, fundamentals and sentiment are positive but investors would be wrong to count on a goldilocks scenario. In the Q2 issue of Alphorum, we focus on navigating sovereign and credit markets ahead of an easing cycle and looming maturity wall, paying special attention to capitalising on volatility to lock-in attractive duration and idiosyncratic situations to capture spreads.
-
White papers
Growing investment opportunities amid bank deleveraging trend
The structural need for European banks to deleverage, particularly with new capital rules under Basel IV coming into effect from 2025 (dubbed as the Basel “Endgame”), is incentivising banks to engage in ‘risk-sharing’ regulatory capital solutions like Significant Risk Transfer and other asset solutions such as Specialty Finance trades. As banks double-down on capital relief and balance sheet optimisation, this is creating an attractive and unique entry point for investors to gain exposure to the core, yet ‘harder-to-access’, parts of bank balance sheets and earn potentially attractive risk-adjusted returns.
-
White papers
Private credit: The growth story in direct lending continues
The growth of the private credit market has been nothing short of breathtaking and, in just a few short years, interest has skyrocketed along with assets under management.
-
White papers
Global growth forecast revised higher, again
”As long as inflation is not resurging, better growth should support equities. We favour a diversified global approach and selective stories, such as India.”
-
White papers
ECB’s next move should be a rate cut
”Inflation remains the main driver of central banks’ policy actions. We could see more appetite for European bonds as the ECB looks on track to start cutting rates in June.”
-
White papers
Fixed Income Perspectives Q2 2024
Quarterly macro and market insights from Capital Group’s fixed income team
-
White papers
Emerging Market Debt Outlook: Opportunities Amid Uncertainty
2024 is already shaping up to be a year of considerable uncertainty. The first quarter has given us a taste of that with a sharp reversal of expectations for the US economy and the monetary policy plan of the Federal Reserve.
-
White papers
Fixed Income Sector Views: Walking, not running, the last mile of inflation
Franklin Templeton Fixed Income believes the US economy shows strength, while the European economy remains stagnant, and both central banks are looking for continued evidence of lower inflation before starting their easing cycles. Read more in the latest Sector Views.
-
White papers
Direct lending is not going away
A look at private credit, and why increased activity in the broadly syndicated loans space is not necessarily a bad thing for direct lending, and vice versa, from Benefit Street Partners Managing Director Anant Kumar.
-
White papers
SDG Engagement High Yield Credit: 2023 Annual Report
In the four years since the launch of the SDG Engagement High Yield Credit strategy, the investment and engagement team has built strong relationships with companies all around the world, in sectors that are key to achieving the SDGs.
-
White papers
Fixed Income Investment Outlook 2Q 2024
Investors continue to wait for clear signals as to the timing and extent of interest rate cuts. After last year’s significant progress on prices, inflation remains elevated and slow in its path toward target levels. That said, although the timing remains uncertain, we believe that the Federal Reserve and European Central Bank will likely begin their downward journey sometime this year.
-
White papers
Sector spotlight: Dialling up the positivity on telecoms
European telecoms have turned a corner operationally and are in the best financial health for many years. This has led us to upgrade this investment grade sector as an investment proposition, reflecting that its fundamental credit quality is expected to improve in the next few years.
-
White papers
Private Credit Outlook: The Bright Side of Higher Rates
More clarity on interest rates means more clarity on the investment outlook and the opportunities across private markets.