All Fixed Income articles – Page 73
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White papersBrazil And South Africa: Two Continental Giants With Feet Of Clay
Following heavy public spending during the pandemic, Brazil’s and South Africa’s government debt has surged over the past year, exacerbating the already sizable fiscal problems both countries were facing before the onset of COVID-19.
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White papersGlobal Macro Outlook - Second Quarter 2021
Vaccination progress and fiscal stimulus have advantaged the US economy, which we expect to grow about 6.5% in 2021. China, too, is rebounding, with output already topping pre-crisis levels. We’re still cautious, however, about Europe, where rising COVID-19 cases may further delay reopenings.
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White papersInvestment Outlook: You asked, we answered
Our Global Views team attempts to answer some of the questions often asked by our clients.
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White papersWhat Markets are Missing Beneath Brazil’s Messy Headlines
While a lot of things have gone wrong for Brazil, it is fair to say that the gap between market prices and economic fundamentals has gone too far.
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White papersESG: Three Challenges High Yield Managers are Tackling Today
From influencing company behavior to seeking better data disclosure, high yield managers are pushing the envelope when it comes to ESG.
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White papersSpeculative grade default cycle: an earlier peak and an expected benign trend
Extraordinary policy intervention has made this HY default cycle unusually short-lived, helping to limit quite significantly the rise in defaults among mid- and high-rated speculative grade companies. A turn into a more benign falling trend over the next quarters looks likely, in light of improved macro perspectives, expected progress in vaccinations and encouraging signals from financial drivers.
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White papersAmid a US economic boom, how high can rates go?
The possibility of an economic boom this year has stoked worries about higher inflation and prompted a sharp selloff in US Treasuries.
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White papersWhy investors should look at Indian assets
India is the fifth-largest economy in the world, according to the World Bank, in terms of nominal 2019 GDP in dollars, and ranks second by population (1.38bn). Although it is one of the world’s fastest-growing economies, its GDP per capita is more than 29x and 4x lower than the USt or China, respectively (also according to the World Bank, nominal 2019 per-capita GDP in dollars). The potential for a catch-up in income over the next decades looks huge.
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White papersThree Strategies for Navigating Turbulent Bond Markets
Today’s market environment taps into bond investors’ primal fears. Extremely low yields make it tough to find sufficient income and potential return. Economic growth is rebounding from its 2020 collapse, but the world’s grip on recovery is uncertain.
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White papersDiversify your allocation to corporate bonds with multi-factor investing
Over the past decade, multi-factor investing in corporate bonds has seen significant development. Easier access to better datasets along with an extensive body of research has enabled managers to move the dial significantly.
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White papersFixed-income markets: from cyclical to structural challenges
Since the start of the year, bond yields have surged in the economies of the G10 as markets anticipate a sharp acceleration in inflation and economic activity. This rebound is likely to be particularly strong in the US given its enormous fiscal stimulus plan. In the medium term, opinion is divided concerning the post-Covid crisis macroeconomic trajectory and a possible change in the inflation regime in the US.
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White papersEuropean credit outlook 2021: a world of uncertainty
European credit markets appear to have stabilised, as investors increasingly price in a perfect economic recovery alongside continuing monetary and fiscal support.
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White papersA U.S. Treasury Bear is Born
Bear markets typically begin cloaked in a spirit of denial. Confutation can be virtuous because decline owns up to problems and making a change to solve them is often too painful. It’s human nature to seek pleasure to avoid pain. So, folks resist and hang on to their dogmas unyielding beliefs like “inflation hasn’t happened and can’t happen because demographics and technology won’t allow it to happen just look at Europe and Japan.” Certainly, an entire generation has grown to acquaint a bond bear but just for a brief “hello” and a more celebrated long “good-bye”.
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White papersThree Focal Points For The U.S.- China Relationship
The recent U.S.-China summit kicked off with U.S.-China relations at a low point. The ongoing shift in U.S. policy towards China—hastened under the Trump administration with the support of both political parties—was long in the making and effectively ended the U.S. doctrine of strategic engagement that facilitated China’s global rise during the preceding four decades.
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White papersDodging The Industry Potholes Across EM High Yield Corporates
The rally in risk markets emphasizes the importance of identifying relative-value opportunities across global asset classes. Emerging market high yield bonds may increasingly draw investors’ interest given a spread pickup relative to their U.S. and European counterparts.
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White papersThe case for Chinese Treasuries
What is in short supply at the moment for fixed income investors are high-yielding, lowly-correlated bonds with solid macro underpinnings: China ticks all of those boxes.
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White papersClimate Change, hot topic in Euro Credit
CPR AM expands its range of climate solutions with a credit fund aligned with the Paris agreements. Julien Daire, head of fixed income, and Noémie Hadjadj-Gomes, head of research at CPR Asset Management, explain the main features of this new strategy.
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White papersIncreasing Yield with US Corporate Bonds
For 2021, with interest rates very low and spreads tight, investors are wondering where to turn in order to generate returns in the liquid fixed income universe. We will show that US credit investments offer attractive returns even after currency hedging. Due to a steep US yield curve, the expected return is higher than the current yield.
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White papersHow to Invest in the “Best of All Possible Worlds”
Markets should worry less about inflation and more about government investment that produces higher rates of sustainable growth.
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White papersQ2 2021 Investment View - Some like it hot
On the ground it does not feel like it just yet, as Europe battles with a third wave of infections, but markets are fast proceeding to the Covid crisis exit door. Too fast? We do not think so and see room for further rotation.
