All Fixed Income articles – Page 74
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PodcastIt’s Quitting Time: Exploring Labor Market Dynamics
After a record-breaking 4.3 million Americans quit their jobs in August, many have had their eyes on the labor market at large. Known as “The Great Resignation” or “The Big Quit”, this phenomenon has turned the heads of employers and employees alike. But how long might this trend last? What has kept people out of the workforce? And what sectors might be able to meet the demand of rising wages?
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White papersLessons from COP26 Net-zero pathway a boon to fixed income
Having more data to discuss with corporates is helping to rewrite the framework for investment, says Andrew Jackson, Head of Fixed Income
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White papers5 reasons to invest in high yield corporate bonds in the current market environment
The high-yield market has historically produced positive results over a full cycle, but it tends to do particularly well during the recovery phase of the business cycle as default rates fall, spreads tighten from wide levels and volatility trends lower.
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White papersEM inflation elevated but still relatively contained; local markets could offer relative value
The gap between emerging market (EM) inflation over developed market (DM) inflation has remained contained this time, in part due to weak economic conditions, muted domestic credit creation and proactive EM central banks. Tighter EM financial conditions should anchor longer term EM inflation expectations.
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White papersRisk and opportunity in Asia credit: Chinese property, regulatory shifts, inflation
We believe at the point of Evergrande default, the contagion are, less financial and more real economy in nature. This is because the overall exposure of the financial system to Evergrande from a top-down perspective is much more manageable albeit there are risks around selected financial institutions with higher exposures to Evergrande.
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VideoSolving for 2022
The heads of our investment platforms identified the key themes they anticipate will guide investment decisions in 2022.
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White papersSocial bonds – A tool to effect positive social change
Social bonds have been the fastest growing segment of the market for thematic bonds. Numerous factors are driving their popularity, including their use to address gender inequality and to support pandemic relief.
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White papersThe role bonds play in a portfolio
Building a resilient and balanced portfolio should be a priority for many investors in today’s environment of heightened financial market uncertainty and volatility across a range of asset classes, including equities.
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PodcastThe Investment Podcast: Is the inflation genie out of the bottle?
With higher inflation now a global phenomenon, the extent of its pick-up varies from country to country. David Parsons and Miles Tym from M&G Investments, explore the localised responses, whether Gen X will be Gen debt and above all – whether inflation is here to stay.
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White papersIs the U.K. the Newest Leading Indicator?
An upside surprise in U.K. inflation and improving employment trends reinforced markets pricing a 10–15 bps rate hike by the BoE in December, while energy prices eased following the announcements from China, which could provide downside pressure to market inflation expectations.
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White papersAn asset class at a crossroads: reshaping credit through ESG
Our holistic approach considers ESG factors within all stages of the investment process, from initial universe screening through to stewardship and advocacy.
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White papersEmerging market debt outlook for 2022
Inflation remains elevated in emerging markets (EM) with ongoing but manageable risks. A significant proportion of the shock to EM inflation can be attributed to volatile food and energy prices. Normalisation of supply chains and base effects should help.
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White papersESG Improvers in Credit Investing
The objective of this article is to explore the impact of ESG Improvers on the corporate bond market. We study passive and active strategies respectively on a broad portfolio and a concentrated portfolio. In particular, we examine how the ESG Improvers strategy behaves if we constrain the optimised portfolio to match the benchmark risk metrics. Some constraints are then relaxed to build a concentrated portfolio.
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White papersA new dawn for Europe? Strategies for investing in European assets
The resurgence of Covid-19 cases in some countries is an area for attention, but should not lead to new generalised lockdowns due to vaccinations which are progressing at a strong pace.
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White papersFed tapering begins: mission accomplished
The Federal Open Market Committee (FOMC) appears to have struck a neutral balance in its November 3 meeting statement and Chair Jerome Powell’s post-meeting press conference. The Fed was careful to differentiate the formal start to monthly tapering of the asset purchase programme with future adjustments to the Federal Funds Rate. The Fed maintained the transitory inflation language, but specifically pointed to inflation “factors that are expected to be transitory” rather than inflation as a whole.
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White papersEM Debt: Why Passive Strategies Often Miss the Mark
When it comes to emerging markets, index tracking can result in both increased risks and missed opportunities.
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White papersMonetary Seesaw – The Treasury and Fed at Opposite Ends
Over the coming months the Federal Reserve Bank will increase the supply of coupons in the market as it tapers its purchases of treasury and mortgage-backed security (MBS) assets. Meanwhile, the U.S. Treasury will decrease the amount of coupon issuance. These seesaw dynamics could make interest rate markets move in unique ways.
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White papersInvesting in the blue economy
Better ocean health is vital for addressing climate change. As fixed income investors, we’re seeing growing opportunities to make a difference.
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White papersThe next phase for private credit markets
The resilience and adaptability of the asset class during the ongoing pandemic has helped to cement private credit’s permanence in the minds of strategic asset allocators.
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White papersFixed Income Perspectives - October 2021
The global economy maintained its positive overall trajectory, though economic indicators grew more mixed. Returns across fixed income were mostly flat to negative for the quarter as an array of developments unsettled the stock market.
