All Fixed Income articles – Page 108
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White papersFixed Income Outlook: Keep an Eye on Systemic Risks in 2020
From a fraught geopolitical landscape to a global slowdown, the major systemic risks in today’s investment landscape are impossible to ignore. We expect such risks to contribute to persistently low and negative yields as well as to bouts of volatility in 2020. With bond yields near historic lows, can fixed-income markets generate solid returns without forcing investors to take too much risk?
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White papersA supportive environment for investment grade credit
The macro environment we face is one of low economic growth, low inflation, and loose monetary policy. That can be considered something of a sweet spot for investment grade credit. Corporate earnings are strong enough for the moderate leverage in the asset class, and investors’ search for high-quality yield supports bond prices.
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White papersEmerging market debt rally set to moderate
Emerging market (EM) debt started 2019 at attractive valuations. This followed a nine-month slide as the US Federal Reserve moved to normalise monetary policy and raise interest rates, which naturally strengthened the dollar and increased EMs’ funding costs.
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White papersBuilding on 2019’s green bond resurgence
In almost whatever country you care to mention, climate change and social inequality are exploding into the public consciousness. Extinction Rebellion in the UK or the Gilets Jaune in Paris are just two of the more high-profile signs. Yet in the financial markets, too, green, social and sustainability bonds are growing in number and sophistication.
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White papersQuality is key in a slow economy
The outlook for Europe’s high yield market was getting darker as we moved into 2019. Third quarter earnings reports at the end of 2018 had mostly missed expectations, industrial activity was slowing and world markets had just suffered a sharp sell-off. Like most others, we were expecting returns for 2019 to be only moderately positive or even flat.
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White papersImpact investing in public fixed income markets
Across Nuveen, our commitment to responsible investing (RI) is based on three core principles:(1) integration of environmental, social and governance (ESG) factors into our investment processes and decision-making; (2) proactive engagement with issuers and other industry stakeholders on a variety of ESG-related topics; and(3) impact, the ability of our investment practices to deliver competitive financial performance and document the intended environmental and social outcomes.
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White papersFixed Expense Investing
Low and even negative yields have turned some fixed income investing into “fixed expense” investing—but there are still good reasons to hold negative-yielding bonds.
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White papersDecember Macro Dashboard
The announced Phase One trade deal between the U.S. and China, as well as the Conservatives increasing their majority in the U.K. election, has tempered two of the biggest political risks hanging over the global economy. At least temporarily, sentiment is turning optimistic.
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White papers2020 Outlook For The Us 10-Year Treasury Bond
In 2019, 10-year US Treasury bonds traded in a range of 1.46-2.78%, the fourth-widest range since 2010.
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White papersFixed Income: Back To Core - Charts And Views
The ongoing slowdown in global trade will weaken global GDP growth further in 2020 – especially in advanced economies skewed towards the manufacturing sector – but a full-blown recession is unlikely, in our view. This situation will encourage policymakers to finally add fiscal stimulus to the policy mix, possibly extending the economic and credit cycles. Monetary policy is unlikely to become much more accommodative and market expectations will have to adjust, likely driving bond volatility higher with a possible bottoming out of core bond yields.
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White papersMitigating Inflation Risk at Lower Opportunity Cost
Inflation-mitigating allocations can drag on returns when inflation is subdued: diversifying and tactical allocation can help.
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White papersSeeking protection in mispriced miners
The copper price – a gauge for the wellbeing of the global economy – has defied supply disruptions and remained broadly flat for the past year. Despite this, the credit spreads of several large mining firms are trading at their lowest levels in 12 months, indicating subdued risk. We think that credit markets have failed to account for several risks that miners face – from a weak macroeconomic outlook to environmental, social and governance issues – and we have sought defensive positions within the sector.
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White papersScreen The Euro Fixed Income Market In The Era Of Three ‘Lows’
As 2020 approaches, the uncertainty in the market has receded but there are still risks ahead involving macroeconomic, political and technical factors. Under such a scenario and with central banks being accommodative, we do not envisage a major increase in European core bond yields from their current levels given the limited growth potential and the scarcity of tools left in the ECB’s toolkit to stimulate the economy. Should the economic situation deteriorate, there could be room for yields to fall, but probably not to the lows reached in late August/early September.
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White papers2020: Risks, Opportunities & Predictions (Part 1/2)
In Part 1 of our 2-part series, Barings’ investment professionals touch on topics from politics to trade wars to economic growth—and offer their perspectives on why EM currencies, international equities and EM local debt might outperform in 2020.
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White papers2020: Risks, Opportunities & Predictions (Part 2/2)
Where can investors find late-cycle value in fixed income? Are real estate investors being compensated for risks? In Part 2/2, we hear from Barings’ leaders across high yield and investment grade credit, private credit, private equity and real estate.
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White papersComeback Time for International Equities?
Because the U.S. equity market is broad and deep, there will almost always be opportunities—but in aggregate, we think international equity markets may be more compelling over the next year.
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White papersFear of Fallen Angels May Be Overblown
Many headlines over the last year have called attention to the growth of the lower-rated BBB portion of the investment grade market—and predicted a wave of fallen angels to high yield. But in the last year, we have seen more HY companies upgraded to IG than the other way around.
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White papers2020: Compelling Opportunities
Barings’ experts across real estate, private equity and fixed income discuss where they expect to see compelling opportunities in the year ahead.
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White papers2020: The Road Ahead
From fixed income and equities to real estate and alternatives, Barings’ teams share their predictions for 2020 and views on where the biggest risks and most compelling opportunities may lie.
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White papersA Bright Spot in Higher-Yielding EM Corporate Debt
Many EM regions have been engulfed in uncertainty for weeks or months. While these situations certainly represent risks, we also continue to find value—often in globally diversified companies that have been unfairly punished by markets because of where they’re domiciled.
