All Fixed Income articles
-
White papersA Growth Mindset
For more than two years, inflation news was the prime mover of market prices; we think last week confirmed that a new dynamic is in play.
-
White papersUS inflation surprises on the upside
“With persistent inflation and a resilient economy in the US, the Federal Reserve is in no rush to cut rates.”
-
White papersClimate Change High Yield Credit, Annual Report 2024
We continue to see investor engagement play a critical role, particularly with companies in high-carbon sectors.
-
White papersFixed Income prepares for a shiny new year
Bonds finished 2024 with positive returns, and we believe fixed income assets can continue to shine. Solid economic growth, sticky inflation and a slow pace of U.S. Federal Reserve rate cuts should keep shorter-term yields elevated. And relatively stable longer term rates mean higher yields can help build portfolio income and return potential. In this environment, we like well-diversified multisector and core plus bond strategies in particular.
-
White papersEM leaders drive fiscal policy improvements: EMD report Q1 2025
With sovereign and corporate credit spreads at multi-year lows, we remain constructive on Emerging Market Debt (EMD) in 2025.
-
White papersFixed income outlook update: the market comes out swinging
The year started with some sharp moves in fixed income, with developments in terms of inflation trends and labour market conditions. So, how does this align with our broader fixed income outlook for the year?
-
White papersHigh yield highlights in a clouded market
High yield bonds ended 2024 on…a bit of a high. And it doesn’t seem set to end anytime soon. With economic fundamentals showing slow-but-steady improvement, led by a surprisingly resilient US economy, we see further scope for positive performance from high yield bonds as we progress into 2025.
-
White papersLDI market review and outlook – February 2025, political risks clash with bond vigilantism
Political and monetary policy uncertainty weighed upon markets in the fourth quarter of 2024, with multiple ‘live’ central bank meetings creating binary risk and political regime change for France, Germany, and vitally, the US.
-
White papersA More Commodious Curve
By fundamentally changing incentives, a normalizing yield curve makes the bond market much more friendly to investors.This time last year, we were urging investors to “Make Your Money Move.” Too much cash was sitting in portfolios, in our view. The 5%-plus interest it was earning looked set to decline, making it less attractive than equities or bonds over anything longer than a six-month time horizon.
-
White papersAssessing Sovereigns’ Progress Towards Net Zero for Fixed Income Investors
Is the US on track to achieve net zero emissions by 2050?
-
White papersGlobal Investment Views - February 2025
Markets: a tug of war between inflation fears and optimism
-
White papersFiscal expansion fears loom over debt markets
Ballooning public debt is forcing many countries to overhaul fiscal rules, which could have a significant impact on credit markets in the months ahead.
-
White papers2025 Emerging market debt outlook: Stick to income and relative value in a disruptive year
As 2024 is now behind us, we are reflecting on a year of political and geopolitical upheaval which culminated in the election of Donald Trump in the U.S., whose disruptive agenda hangs over emerging market (EM) investors’ heads. In this outlook, we flesh out our current view of the world, as seen from an EM lens, and highlight a few key investment themes.
-
White papersNavigating interest rate uncertainty on the bond market during a second Trump term
US bond rates are a significant risk driver for institutional investors such as pension funds, insurance companies, and sovereign wealth funds who typically invest roughly 30% of their allocations into bonds and other fixed income classes. With Trump’s election win, we must navigate the potential impacts of his policies on the bond market. Given the contradictory nature of his suggested policies, we see the potential for a new level of interest rate uncertainty driven by a mix of inflationary and growth pressures causing increased volatility in the bond market.
-
White papersEmerging market debt outlook for 2025: Ready for Trump 2.0?
Looking ahead to 2025, the macro environment, in theory, sets the stage for a friendly backdrop in EM, especially given continued disinflation, which should allow most major central banks to ease rates throughout the year. However, the incoming US administration poses several risks to EMs.
-
White papersAnticipation to Reality: Credit Markets for European Insurers in 2025
Mapping a way through a year of tight credit spreads and likely regional divergence in policy and growth.
-
White papersFixed Income: Be Prepared for Policy-Driven Volatility
In the wake of electoral shifts, policy changes could add to market turbulence, creating new risks but also opportunities.
-
PodcastFixed Income Moves in 2025
As the United States embarks on a new administration, markets eagerly prepare for what is to come regarding domestic policy, international policy, tariffs, and geopolitics. But how will the Fixed Income asset class move through these new pathways? What factors are at play regarding fiscal and monetary policy? And how can investors prepare for the year ahead?
-
White papersAsset Allocation Committee Outlook, 1Q 2025 - A Delicate Balance
“Overall, we anticipate a supportive backdrop for risk assets, as reflected in our broad asset-class views… The balance is delicate, however, and the risks are piled up on both sides.”
-
White papersBank of Japan Rate Hike to 17-year High Portends More
The Bank of Japan raised its policy rate to 0.5%, the highest in 17 years, aiming for a balanced approach to avoid market volatility, yen weakening, and triggering sharp market repricing.
