Fixed Income – Page 6
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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 papers
Value 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 papers
Managing 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 papers
As 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 papers
The 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 papers
Quick 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 papers
Rethinking Fixed Income Allocations
The evolution of fixed income markets and more diverse strategies dictate the need to evaluate strategies along a flexibility and liquidity continuum. We believe asset allocators are better served by increasing the breadth within the fixed income part of their portfolios by adding more flexible investments along with traditional bond allocations.
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White papers
Reasons 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 papers
Investment 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 papers
Equity 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 papers
Pressures 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 papers
Stock Buyback Motivations and Consequences: A Literature Review
Once infrequently used, stock buybacks have become the dominant form of corporate payouts in the new century. Hundreds of billions of dollars flow from public companies to their shareholders via share repurchases every year. This literature review presents the main findings from the academic literature on stock buybacks in the United States and around the world. Where appropriate and possible, it compares and contrasts the insights of researchers to the views of practitioners.
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White papers
Anticipating the climate change risks for sovereign bonds (Part 3)
In this paper, we illustrate how climate change could materialize should no further mitigation efforts be implemented. We focus on two specific climate hazards: (i) the average temperature and (ii) the frequency of very hot days.
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White papers
Supply 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 papers
Blog | Negative yielding bonds – are we near the end of the paradox?
Shakespeare liked a paradox and it’s what makes Hamlet famous. In contrast, investors would be more than happy to see the end the paradox of bonds with negative returns. When they first appeared in yen, swiss franc, euro and sterling, emergency meetings were held with sales and clients to explain how the paradox was possible: what investor would lend at negative rates?
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White papers
US 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 papers
Why 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 papers
Bank 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 papers
Financing economic growth with private debt
Listed assets no longer suffice to build an investment portfolio. Private debt is becoming central to allocations.
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White papers
Cross Asset Investment Strategy - February 2022
Recent sharp increase in nominal and real yields has been reflected in strong movements in equity markets, causing a rotation out of growth into value stocks. We think the uncertainty (Covid, geopolitics) would continue as markets assess the path of inflation, economic growth and monetary policy.
