Fixed Income – Page 7
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White papersStock 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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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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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.
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White papers
Russia-Ukraine tensions: geopolitical risk adds volatility to risk assets
Geopolitical dimension of the crisis: tensions stand at their highest point in years, after Moscow deployed 100,000 troops to its border with the Ukraine’s Donbas region. The geopolitical risk between Russia and the West remains deadlocked since Russia’s 2014 annexation of Ukraine’s Crimea peninsula and the consequent Western sanctions to Russia.
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White papers
Build a Better Bond Portfolio
Today’s fixed income challenges are known by all. Flattening curves, elevated inflation and bond market volatility are all there. But they’re not insurmountable and not the whole story. Smart investors are reimagining their bond portfolio and just how rewarding it can be.
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White papers
Roadmap for Fixed Income 2022
Bond investors everywhere remain on the hunt for yield. The opportunities are out there. You just need to broaden your horizons and bring your portfolio into shape for the year ahead.
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Untapped potential: Harnessing the full power of bondholder engagement
Investor influence has long been confined to that of equity shareholders. Yet bondholders wield a lot of power. Can they harness it for positive change?
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White papers
Blog | Getting to grips with corporate bond default risk
With the rise of quantitative credit trading, investors are looking for novel data to better understand their investment risks and drive investment decisions through statistical models.
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White papers
Managing Climate-Transition Risk in Credit Portfolios
Are there ways that managers can take an active approach to systematically managing exposure of a corporate-bond portfolio to climate-transition risk? We investigate doing this via different approaches to decarbonization of a portfolio, i.e., reducing the portfolio’s total greenhouse gas (GHG) footprint.
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White papers
Jeromicron: Markets Face a One-Two Punch
Preliminary Markit PMIs in the U.S. show Omicron weighed on consumer demand, labor supply, and supply chain disruptions in January. The composite PMI fell from 57 to 50.8—its lowest level in 18 months; declines were seen in services and manufacturing.
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White papers
Macro Views: Macro Fundamentals Support a Risk-on position
The new year has started with significant volatility, as central bankers make clear a shift in monetary policy that has seen long rates move sharply higher and questioned asset valuations.
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White papers
Fixed Income Perspectives
Global economic growth looks likely to continue in 2022, albeit at a more modest pace. The COVID-19 pandemic does, however, add uncertainty to the outlook, as evidenced by the recent emergence of the Omicron variant.
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White papers
Personalizing Climate-Focused Wealth Management Portfolios
The growing focus by investors on climate change is leading wealth managers to personalize portfolios in ways that off-the-shelf model portfolios may not address. A climate-first approach to portfolio construction combines equity and bond assets that broadly integrate climate and ESG considerations with holdings that reflect the specific climate and sustainability preferences of investors.
