All Fixed Income articles – Page 78
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White papersWhy we think it’s too early to be cautious on equities
Value stocks outperformed momentum by almost 30% in November, but then gave back a third of this by the beginning of 2021
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White papersWhat will be the key factors driving EM debt markets in 2021?
In spite of the 2020 rally, there are still attractive opportunities across different parts of the investment universe
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White papersA changing climate in fixed income: 360°, Q1 2021
What is our current view of fixed income markets? And where do we see the best relative value?
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White papersThe latest evolution of distress language in CLO documentation
With greater flexibility afforded to the manager, what can debt investors reasonably expect from changes made to documentation for collateralised loan obligations (CLOs)?
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White papersBank bonds and the uncertainty principle: why financial analysts must look outside the box
Bank bond analysts could once ply their craft among the two well-defined research fields of macro-economics and financial accounts. But, as Fiorino discovers, understanding financial institution fixed income securities now requires analysis that stretches across traditional boundaries of knowledge.
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White papersLots of Stimulus, Not Much Inflation
Weak U.S. jobs data fuels debate for further fiscal stimulus but some worry inflation may overshoot the Fed’s target this year. In China, the PBOC is tapering monetary stimulus. In Europe, the Q4 contraction was less severe than initially thought, but the recovery looks delayed.
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White papersWhat do the unprecedented monetary and fiscal measures mean for inflation?
As the largest vaccination programme in history commences, risk markets appear to be ignoring the logistical challenges or near-term downside growth risks from tighter lockdowns imposed after infection rates in Northern Hemisphere countries soared over the winter.
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White papers*Fixed income outlook – From despair to hope*
In the US, reflation on the back of fiscal stimulus and the exit from lockdowns should lead to modestly higher inflation expectations and nominal bond yields.
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White papersFor diversification and returns: private debt and real assets
Investing in private debt and real assets can offer investors benefits such as attractive risk-adjusted return potential and real diversification, setting these ‘alternative’ markets apart from their traditional public counterparts.
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White papersSupply vs demand of EMU EGB in 2021
Euro area sovereign debt issuance vs. ECB purchase dynamics look favourable in 2021. On the supply side, net issuance should decrease vs 2020, thanks to lower aggregated numbers of budget deficits, incoming support from EU funds, and for some countries, the use of increased cash accounts and higher bond redemptions.
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White papersWhy we don’t expect the Fed to taper its bond buying programme this year
In a world where sovereign bond yields are in the hand of central banks, the recent upward revisions of growth expectations for the US economy raised questions about the outlook for the Fed’s monetary policy. Growth is expected to rebound in H2 and very accommodative monetary policy is not a free lunch. The difficulty for the Fed is estimating how sustainable this expected improvement in growth and inflation will be in H2 2021.
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White papersTaper or not taper: a key issue for markets
The Fed is committed to maintaining very accommodative monetary conditions and unchanged interest rates until the economy has returned to full employment and inflation has stabilised above its 2.0% target. But the Fed has so far been vague on what determines the pace of its asset purchases. It is clear that these will have to decline long before it raises its key rates. But when and on what basis?
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White papersThe greenness of the EU budget: implications for fixed income and industry
The EU’s significant budget allocations to address the climate crisis supports the decarbonisation of the economy whilst also securing the permanence of sustainable fixed income.
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White papersCatastrophe Bonds: Natural Diversification
Following another eventful year in reinsurance, we offer a primer on catastrophe bonds—a growing and genuinely diversifying asset class that we believe is attractively valued.
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White papersFixed Income Investment Outlook 1Q 2021
After a year of profound economic and market turbulence, we anticipate improving global growth in 2021. Accelerated vaccine distribution should allow for wider reopening, while the release of pent-up demand and ongoing monetary support will likely help drive renewed expansion.
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White papers2021 EMD outlook: In the wake of the storm
The COVID-19 market crisis was a cognitive shock, similar in magnitude to the Great Financial Crisis of 2008. Global investors found themselves surprised and wrong-footed in terms of risk positioning. After all, a pandemic isn’t usually part of the risk management textbook.
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White papersDon’t Mistake Growth for Quality
As investors adjust for a potential style rotation, we urge them not to abandon their portfolios’ “quality compounders” and “transition winners.”
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White papersU.S. Consumers: Don’t Worry, They’re Here to Stay
Worsening U.S. consumer confidence data shows the labor market is expected to remain fragile, though spending should improve due to greater fiscal support. Eurozone inflation will likely accelerate slightly, and strong trade data from Asia shows global demand’s resiliency.
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White papersIncome and inflation: Play to your strengths
For years, investors of all stripes, from the world’s largest institutions investors to individuals, have focused on the risk of persistently low interest rates and the struggle to achieve income. But there’s another potential risk on the horizon, with similarly damaging effects, that also demands focus: prospects for rising inflation and the erosion of purchasing power.
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White papersCOVID-19: Investors are finding new ways to drive positive social outcomes
COVID-19 has been a test of companies’ sustainability credentials. It has sharpened public and investor scrutiny of environmental, social and governance (ESG) practices and has notably intensified attention around the ‘social’ component.
