Fixed Income – Page 6
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White papersLong-term Capital Market Expectations: Higher yields lift all boats
The Franklin Templeton Investment Solutions team’s capital market expectations (CME) is designed to provide annualized return expectations over a longer-term horizon, typically viewed as 10 years.
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White papers‘Peak rates’ and opportunities for credit selection in 2024
After two years of declines, 2023 proved to be another tough year for bond investors. However, a powerful rebound towards year end helped the global bond index end the year in positive territory for the first time in three years. Below, Jim Leaviss, CIO Fixed Income at M&G Investments, shares his views on the prospects for bond markets in today’s ‘peak rates’ environment, while senior credit portfolio manager Richard Ryan looks at the opportunities presented by fundamental credit selection.
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White papersTime for credit – why we like investment grade
To better understand the impact of potential macroeconomic scenarios on the asset class, we have undertaken a sensitivity analysis of the global investment grade corporate bond market. This sensitivity analysis points to one clear implication: the importance of investing in fixed income despite ongoing uncertainty. We believe fixed income, in particular credit markets, have become a much more attractive proposition for investors.
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White papersResilient private credit fills a growing need across U.S. and Europe
The U.S. and European private credit markets have been a significant success story of asset management for the last decade.
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White papersBond Portfolio Optimisation and Mixed Integer Programming
While portfolio optimisation is commonplace in equities, it is more complex in the fixed-income space, partly because of trading lot sizes. Implementing the portfolio composition by converting weights into holdings is easy for equities due to small lot sizes.
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White papersECB on hold supportive for Euro credit markets and govies
Key takeaways from the European Central Bank’s meeting
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White papersFed and ECB: towards rate cuts in 2024
”Markets expect Central Banks to cut rates in early 2024. This is too optimistic, but falling inflation is good news for investors.”
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White papersInvestors Cannot Ignore the Debt-Sustainability Question
Despite a pullback in bond yields, clients at our Solving for 2024 event were still uncertain about how to invest in a world of runaway government debt.
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White papersHigher rates will start to bite the corporate sector in 2024
The impact of rate increases on businesses is expected to intensify in 2024. Businesses haven’t been impacted much by higher rates so far because they have used the cash they collected during Covid and refinance needs have been limited. However, refinancing needs will rise in 2024 Small and medium sized companies and lower rated HY issuers will be most impacted. The spillover from higher rates will be more limited for IG companies.
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White papersDovish Fed contemplates rate cuts: risks to weaker US growth persist
The Fed kept its benchmark overnight borrowing federal funds rate unchanged at 5.25-5.50% for the third consecutive meeting, that is, a period now spanning almost five months. The FOMC statement and press conference were more dovish than we – and the market – expected. This was exemplified in Chair Jerome Powell’s comment that the Fed believes interest rates are at or near their peak in this cycle.
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White papersPowell pivots policy: moving closer to rate cuts
The U.S. Federal Reserve left interest rates unchanged at its December meeting, as expected, and updated projections signal even more rate cuts in 2024 than previously expected.
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White papersAllview: Market Risk Monitor - December 2023
Each month, Allspring’s Investment Analytics team assembles a top 10 list of market risks that it believes have the potential to influence investment portfolios.
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White papersCan You Protect the Environment and Your Yield?
Reducing carbon intensity doesn’t mean sacrificing yields. Issue selection in high-emitting sectors can help insurers stay on track with their liabilities.
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White papersAssessing the U.S. Economy’s Evolving Sensitivity to Interest Rates
Our research series reveals that a varied adjustment process across certain sectors lowered the broader economy’s sensitivity to interest rates.
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White papersThe Balance Between Corporate Profit Margins and Economic Resilience
This blog shares our views on the relationship between corporate margins and different U.S. economic growth scenarios using our corporate profit model to estimate performance.
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White papersTracking the Transition from Tighter Policy to Corporate Spreads
We explore the historical transmission from tighter monetary policy to corporate bond spreads and the respective investment implications under our “weakflation” scenario.
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White papersThe overlooked appeal of short-dated euro corporate debt
Corporate balance sheets continue to provide support for opportunities in the front-end of the credit curve in the eurozone.
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White papersOffice Space: The CRE Effects On Major U.S. Cities
Rising office vacancy rates, declining property valuations, and the respective impact on tax revenues and city budgets are a source of growing concern for municipal bond investors.
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White papersResilient private credit fills a growing need across U.S. and Europe
The U.S. and European private credit markets have been a significant success- story of asset management for the last decade. Having begun life as a source of financing for mid-market companies that could not raise funds elsewhere, private credit has grown into a serious and credible competitor to both traditional bank debt and the liquid markets (i.e., the leveraged loans and high yield bonds), something that would have seemed fanciful just a few years ago. Now, private credit players are regularly financing the entirety of multi-billion-dollar debt structures.
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White papersFrom NICE to VILE—The Future of Inflation
We explore the type of inflationary environment that we might expect across developed markets in the future and its potential effect on global asset prices.
