All Fixed Income articles – Page 31
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White papersCross Asset Investment Strategy - May 2024
Topic of the Month: IMF spring meeting take-aways: short-term resilience, but no reacceleration in the mid term
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White papersGlobal Investment Views - May 2024
Recent inflation and growth data from the US indicates continued strength in the economy, leading us and various institutions including the IMF to revise up US growth. We see the current strong momentum to continue into Q2 but expect a deceleration in H2, without negative growth in any quarter.
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White papersEmerging market debt: the strong recovery continues
After a difficult couple of years for the asset class, emerging market debt (EMD) is one of the fastest growing parts of the wider fixed-income universe.
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White papersShort duration credit: ride the wave
The Euro Kurzlaufer Strategy’s global short duration approach allows it to respond and maximise overall returns based on the relative value of assets, whatever the direction of yields.
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White papersAn Ocean of Difference
‘Copy and paste’ your U.S. inflation outlook onto Europe and you may miss the opportunity in core European bonds.
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White papersHigher Yields Burnish IG Credit’s Luster
Spreads continue to grind tighter—but current elevated yields, combined with the potential for attractive total returns, continue to draw investors into IG credit.
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White papersEM Debt: Reasons for Optimism, But Risks Remain
The upbeat note on which EM debt entered the year continues to prevail. While tailwinds exist, there is also a myriad of potential risks to navigate in the coming months.
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White papersHigh Yield: What the Market May Be Missing
A closer look at the dynamics shaping today’s high yield bond and loan markets reveals the potential for continued strong performance ahead.
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PodcastHigh Yield Bonds & Loans: Adapting to Changing Markets
Against a backdrop of stickier-than-expected inflation, higher-for-longer rates, and persistent geopolitical risks, what is the outlook for high yield bonds and senior secured loans? Global High Yield Portfolio Manager, Brian Pacheco, weighs in.
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White papersFixed Income Outlook – Be selective on emerging market debt
Given the recent strong performance for emerging market bonds, we have tempered our optimism about the potential for further spread tightening among the higher-rated segments. We remain, however, constructive on the asset class as a whole and still see attractive opportunities among lower-rated sovereign bonds, as well as selected local currency bonds.
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White papersWith trillions looking to come off the subs bench is this the year of the bond?
After an aggressive global rate hiking cycle trillions of dollars are poised to re-enter the market once central banks begin to ease, but risks still remain. The fixed income experts discuss generating returns despite market noise, including taking advantage of the expanding corporate bond market.
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White papersWhy discipline matters in rapidly changing markets
Dynamically evolving bond markets not only offer a wide range of ways to add value, but constant learning opportunities too, according to Richard Woolnough, Fund Manager in M&G’s Public Fixed Income team.
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White papersFixed Income Outlook – Corporate bonds still a bright spot
We expect corporate bonds to deliver positive returns in the coming quarters, primarily due to the attractive yields. With money market rates becoming less attractive as interest rate cuts loom, further supporting inflows into corporate bonds look likely.
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White papersAhead of the curve: Resilience amid divergence
While economies have proved remarkably resilient in the face of aggressive interest rate hikes, we have started to see divergence more recently. Countries such as the US, India and Japan have proved stronger than others – including Europe, the UK and China – driven mainly by differences in consumption, investment, and fiscal policies.
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White papersGrowing investment opportunities amid bank deleveraging trend
The structural need for European banks to deleverage, particularly with new capital rules under Basel IV coming into effect from 2025 (dubbed as the Basel “Endgame”), is incentivising banks to engage in ‘risk-sharing’ regulatory capital solutions like Significant Risk Transfer and other asset solutions such as Specialty Finance trades. As banks double-down on capital relief and balance sheet optimisation, this is creating an attractive and unique entry point for investors to gain exposure to the core, yet ‘harder-to-access’, parts of bank balance sheets and earn potentially attractive risk-adjusted returns.
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White papersPrivate credit: The growth story in direct lending continues
The growth of the private credit market has been nothing short of breathtaking and, in just a few short years, interest has skyrocketed along with assets under management.
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White papersFixed Income Outlook – Not as planned
Another higher-than-expected US inflation number means the US Federal Reserve should be in no rush to cut rates before price pressures subside. With the risk of inflation continuing to surprise to the upside in the near term, we now expect benchmark 10-year yields to potentially retrace to 4.75%, at which point we would likely again go overweight duration.
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White papersGlobal growth forecast revised higher, again
”As long as inflation is not resurging, better growth should support equities. We favour a diversified global approach and selective stories, such as India.”
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White papersECB’s next move should be a rate cut
”Inflation remains the main driver of central banks’ policy actions. We could see more appetite for European bonds as the ECB looks on track to start cutting rates in June.”
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White papersFixed Income Perspectives Q2 2024
Quarterly macro and market insights from Capital Group’s fixed income team
