Fixed Income – Page 10
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White papers5 reasons to invest in high yield corporate bonds in the current market environment
The high-yield market has historically produced positive results over a full cycle, but it tends to do particularly well during the recovery phase of the business cycle as default rates fall, spreads tighten from wide levels and volatility trends lower.
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White papers
Money in Covid Times
Is central bank policy orthodoxy a thing of the past? If so, what are the new limits? If not, what is the path to normalization? This report helps frame those key policy considerations.
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EM inflation elevated but still relatively contained; local markets could offer relative value
The gap between emerging market (EM) inflation over developed market (DM) inflation has remained contained this time, in part due to weak economic conditions, muted domestic credit creation and proactive EM central banks. Tighter EM financial conditions should anchor longer term EM inflation expectations.
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White papers
Risk and opportunity in Asia credit: Chinese property, regulatory shifts, inflation
We believe at the point of Evergrande default, the contagion are, less financial and more real economy in nature. This is because the overall exposure of the financial system to Evergrande from a top-down perspective is much more manageable albeit there are risks around selected financial institutions with higher exposures to Evergrande.
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Macro Views: Central Bank Surprise is positive for the short term only
Central banks have returned to centre stage over the past few weeks as inflation expectations have continued to rise sharply and investors have started pricing in swifter adjustments to monetary policies.
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White papers
Social bonds – A tool to effect positive social change
Social bonds have been the fastest growing segment of the market for thematic bonds. Numerous factors are driving their popularity, including their use to address gender inequality and to support pandemic relief.
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White papers
The role bonds play in a portfolio
Building a resilient and balanced portfolio should be a priority for many investors in today’s environment of heightened financial market uncertainty and volatility across a range of asset classes, including equities.
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White papers
Rising Yields Present a Familiar Challenge in a New Era
Bond yields are rising again, which suggests that investors are bracing themselves for higher inflation and rising interest rates. Interestingly, inflation protected government bonds have even outperformed high yield bonds over the past two years. This implies a sustained shift in the economic and market environment.
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White papers
Preferred stocks and hybrids (Product Profile)
Investors are nervous about the outlook for both fixed income and risk assets, and the new FTSE US Preferred Stock & Hybrids Index series could mitigate these concerns in the current macro environment.
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Three Flawed Assumptions in Climate Risk Models
A few weeks ago, the UK faced a severe shortage of CO2. At a time when dramatic cuts in emissions are needed, that sounds like good news. In fact, it threatened a food shortage, as CO2 is used for a variety of applications, including beverage carbonation, preservation, and slaughterhouses.
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White papers
Is the U.K. the Newest Leading Indicator?
An upside surprise in U.K. inflation and improving employment trends reinforced markets pricing a 10–15 bps rate hike by the BoE in December, while energy prices eased following the announcements from China, which could provide downside pressure to market inflation expectations.
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White papers
An asset class at a crossroads: reshaping credit through ESG
Our holistic approach considers ESG factors within all stages of the investment process, from initial universe screening through to stewardship and advocacy.
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No Time to Thrive
S&P DJI has just released the final regional edition of our S&P Index Versus Active (SPIVA®) Mid-Year 2021 Scorecards.
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Applying ESG Factor to Government Bond Indices
There is a continuing philosophical debate about how best to apply an ESG investment approach to global sovereign debt portfolio, evidence of which is the relative lack of ESG government Bond indices in the market.
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ESG Improvers in Credit Investing
The objective of this article is to explore the impact of ESG Improvers on the corporate bond market. We study passive and active strategies respectively on a broad portfolio and a concentrated portfolio. In particular, we examine how the ESG Improvers strategy behaves if we constrain the optimised portfolio to match the benchmark risk metrics. Some constraints are then relaxed to build a concentrated portfolio.
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White papers
A new dawn for Europe? Strategies for investing in European assets
The resurgence of Covid-19 cases in some countries is an area for attention, but should not lead to new generalised lockdowns due to vaccinations which are progressing at a strong pace.
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White papers
Fed tapering begins: mission accomplished
The Federal Open Market Committee (FOMC) appears to have struck a neutral balance in its November 3 meeting statement and Chair Jerome Powell’s post-meeting press conference. The Fed was careful to differentiate the formal start to monthly tapering of the asset purchase programme with future adjustments to the Federal Funds Rate. The Fed maintained the transitory inflation language, but specifically pointed to inflation “factors that are expected to be transitory” rather than inflation as a whole.
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White papers
EM Debt: Why Passive Strategies Often Miss the Mark
When it comes to emerging markets, index tracking can result in both increased risks and missed opportunities.
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White papers
The inflation debate: Will price pressures persist or start to recede?
This Global Macro Shifts explores inflation in the US, comparing the case for temporary inflationary pressures against the argument that high inflation will become more persistent and entrenched.
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White papers
Monetary Seesaw – The Treasury and Fed at Opposite Ends
Over the coming months the Federal Reserve Bank will increase the supply of coupons in the market as it tapers its purchases of treasury and mortgage-backed security (MBS) assets. Meanwhile, the U.S. Treasury will decrease the amount of coupon issuance. These seesaw dynamics could make interest rate markets move in unique ways.
