All Fixed Income articles – Page 4
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White papersJumbo cuts call for neutral duration
The cutting cycle is finally underway – we think portfolios need to be at least neutral on duration for two key reasons.
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White papersFed’s 50 bp Cut Kickstarts Recalibration
In one of the more anticipated FOMC meetings in recent memory, the Federal Reserve kicked its easing cycle off with a 50-basis point cut which marks the recalibration of U.S. monetary policy.
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White papersWhen the stars align: Opportunities in global investment grade corporate bonds
The turn in the interest rate cycle toward lower rates potentially provides a strong backdrop for fixed income. And with its high quality, attractive yield and duration profile, we believe investment grade credit could be well positioned to provide investors with strong returns over the coming investment cycle.
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White papersECB cuts rates again this year
“Declining price pressures are leading central banks such as the ECB to reduce policy rates. This, coupled with uncertainty over economic growth, could potentially be supportive for European bonds.”
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White papersThe critical role of covenants in Private Credit
Covenants in private credit often act as crucial safeguards, functioning as early warning systems for lenders. They help monitor borrower stability and manage risks, allowing lenders to intervene if deviations from their base case occur.
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White papersA(nother) Cautious ECB Cut Amidst Uneasy Stability
The ECB unanimously cut its main policy rate to 3.5% at its September policy meeting, and we anticipate a gradual and limited path with further rate cuts, at least until the end of 2024.
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White papersInflation Quarterly Monitor
Central banks continue to tread carefully when it comes to monetary easing, expressing cautious optimism about inflation yet refusing to commit on the future path of policy rate decisions. Amidst falling inflation and slowing growth, the added complexity of political risk in the US, Europe and the UK has brought greater uncertainty. Even after the European Central Bank (ECB) acted as the first mover to cut policy rates in June, other central banks did not immediately follow in their June meetings.
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PodcastDebt-for-Nature Swaps: Unlocking Capital for Conservation
This episode explores debt-for-nature swaps with special guest, Slav Gatchev, Sustainable Debt Managing Director at The Nature Conservancy.
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White papersHigh-Yield Bonds: Gaining Traction for Good Reason
High-yield bonds have become an increasingly popular investment choice. At Northern Trust Asset Management, we strongly believe this asset class is positioned to continue delivering the strong performance seen in the first half of 2024.
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PodcastHigh Yield Bonds: Assessing the Landscape Today
Kelly Burton sheds light on the technical and fundamental picture for high yield bonds today as investors grapple with an increasingly noisy macroeconomic and political backdrop.
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White papersMunicipal Fixed Income: Shelter From the Storm?
Technical factors and market volatility are creating a value opportunity in the U.S. municipal market. The summer months are typically a quieter, more predictable time in the municipal fixed income market, as supply tends to be modest and demand rises due to higher levels of bond reinvestment.
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White papersRate cuts: Now may be the time to extend duration
With the Fed likely to begin its rate cutting cycle in September, investors should consider extending duration now in high-quality fixed income to capture potential gains. Historically, bond yields drop ahead of Fed rate cuts, offering a window of opportunity to enhance returns without waiting for official policy shifts. Positioning in longer-duration assets now can provide income stability and potential price appreciation in a slowing economy.
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White papersWant to Optimize Your Fixed Income Strategy?
The debate between active and index investing has evolved. Now, the key question is whether active, index or systematic investing is more effective for specific fixed-income sectors and the asset class as a whole. Our latest paper, The Role of Active, Index and Systematic Investing in Fixed Income Portfolios.
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White papersGeopolitical risks and FX reserves
In this short video, Gary Smith, Client Portfolio Manager, Fixed Income covers: What are FX reserves, and why should we care how they are managed? What triggered the idea to write the article What do geopolitical risks mean for central bank FX reserves managers? Why is self-insurance desirable? What are the implications of fixed income markets?
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White papersEndgame – the benefits of ‘buy and maintain’ credit
Due to higher gilt yields, many defined benefit pension schemes are now in a stronger funding position than they were a few years ago. To secure this improved status, schemes are looking to reduce investment risk by decreasing equity holdings and focusing on assets that will more likely provide the necessary cashflows to pay pensions.
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White papersU.S. Bank Update Amid an Economic Turn
More than one year after the banking panic of early 2023, we reflect on the sector’s investment portfolios, liquidity, and profitability conditions.
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White papersWhat does India’s benchmark inclusion mean for investors
Indian government bonds have been added to the global emerging market bond index, providing foreign investors access to India’s $1.3 trillion government bond market. The move could improve capital flows into the country, as well as stabilise yields.
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White papersSeizing value in emerging market debt
Despite recent challenges, emerging market economies remain robust and are delivering positive growth. India is leading the charge, benefiting from secular demographic trends like a growing working-age population as well as resilient domestic demand. As China’s share of global growth declines, India is stepping in to fill the gap. More broadly, EM growth projections have been revised upward by the IMF’s World Economic Outlook (WEO), benefiting from country-specific factors.
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White papersUnderstanding how social and sustainability bonds can have real impact
For fixed-income investors seeking to put their money into assets that can bring benefits to less well-off people and communities, social bonds and sustainability bonds can offer effective solutions, write Malika Takhtayeva and Xuan Sheng Ou Yong, of BNP Paribas Asset Management
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White papersELTIF 2.0: Investing in private credit through open-ended funds
In this paper, we discuss the amended regulation on European Long-Term Investment Funds (ELTIF 2.0), the latest evolution of EU Alternative Investment Funds (AIFs). The first version of this fund structure was introduced in 2015 and aimed to finance the real economy by channelling non-bank capital to long-term infrastructure projects and SMEs.
