All Fixed Income articles – Page 9
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White papersA selective approach is key in high yield in 2025
Jack Stephenson, Fixed Income Investment Specialist, spoke to Investment Week about US high yield and where we are finding opportunities.
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White papersClimate Change High Yield Credit, Annual Report 2024
We continue to see investor engagement play a critical role, particularly with companies in high-carbon sectors.
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White papersFixed Income prepares for a shiny new year
Bonds finished 2024 with positive returns, and we believe fixed income assets can continue to shine. Solid economic growth, sticky inflation and a slow pace of U.S. Federal Reserve rate cuts should keep shorter-term yields elevated. And relatively stable longer term rates mean higher yields can help build portfolio income and return potential. In this environment, we like well-diversified multisector and core plus bond strategies in particular.
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White papersEM leaders drive fiscal policy improvements: EMD report Q1 2025
With sovereign and corporate credit spreads at multi-year lows, we remain constructive on Emerging Market Debt (EMD) in 2025.
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White papersFixed income outlook update: the market comes out swinging
The year started with some sharp moves in fixed income, with developments in terms of inflation trends and labour market conditions. So, how does this align with our broader fixed income outlook for the year?
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White papersLDI market review and outlook – February 2025, political risks clash with bond vigilantism
Political and monetary policy uncertainty weighed upon markets in the fourth quarter of 2024, with multiple ‘live’ central bank meetings creating binary risk and political regime change for France, Germany, and vitally, the US.
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White papersEuro high-yield – There is more to come!
Over the last two years, the euro high-yield segment has performed well, with relatively low volatility. It has shown resilience to both external shocks and negative idiosyncratic events within the high-yield universe. We think this demonstrates that the segment is now more mature and of better intrinsic quality than a few years back.
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White papersA More Commodious Curve
By fundamentally changing incentives, a normalizing yield curve makes the bond market much more friendly to investors.This time last year, we were urging investors to “Make Your Money Move.” Too much cash was sitting in portfolios, in our view. The 5%-plus interest it was earning looked set to decline, making it less attractive than equities or bonds over anything longer than a six-month time horizon.
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White papersRobust fundamentals should prop up emerging market debt
Many emerging market economies have robust fundamentals: strong external demand, stabilising inflation and monetary policy easing, While their GDP growth is expected to outpace that of their developed market peers, there could be some headwinds in the first few months of 2025 from renewed uncertainty around the US Federal Reserve’s rate cutting cycle, the Trump administration’s policy agenda, the outlook for geopolitics and a strong US dollar.
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White papersAssessing Sovereigns’ Progress Towards Net Zero for Fixed Income Investors
Is the US on track to achieve net zero emissions by 2050?
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White papersAn Early Look at the Implications of Tariffs and a Trade War
After the trade war’s opening salvoes, tensions seem set to last for some time.
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White papersGlobal Investment Views - February 2025
Markets: a tug of war between inflation fears and optimism
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White papersIG Credit – Be selective, even amid good fundamentals
While uncertainties remain, we retain our positive outlook, supported by resilient growth in the US, steady investor demand and a supportive monetary easing cycle in Europe. As for the fundamentals, the peak in investment-grade (IG) credit quality for this cycle is now behind us. Nonetheless, both US and European IG bond issuers are still generally in good shape: They now have bigger reserves of cash, lower net debt and better net margins.
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White papersU.S. Housing Chartbook
The U.S. consumer remains strong on the back of a healthy labor market and inflation is moving back to target, albeit slowly.
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White papersFiscal expansion fears loom over debt markets
Ballooning public debt is forcing many countries to overhaul fiscal rules, which could have a significant impact on credit markets in the months ahead.
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White papers2025 Emerging market debt outlook: Stick to income and relative value in a disruptive year
As 2024 is now behind us, we are reflecting on a year of political and geopolitical upheaval which culminated in the election of Donald Trump in the U.S., whose disruptive agenda hangs over emerging market (EM) investors’ heads. In this outlook, we flesh out our current view of the world, as seen from an EM lens, and highlight a few key investment themes.
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White papersNavigating interest rate uncertainty on the bond market during a second Trump term
US bond rates are a significant risk driver for institutional investors such as pension funds, insurance companies, and sovereign wealth funds who typically invest roughly 30% of their allocations into bonds and other fixed income classes. With Trump’s election win, we must navigate the potential impacts of his policies on the bond market. Given the contradictory nature of his suggested policies, we see the potential for a new level of interest rate uncertainty driven by a mix of inflationary and growth pressures causing increased volatility in the bond market.
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White papersEmerging market debt outlook for 2025: Ready for Trump 2.0?
Looking ahead to 2025, the macro environment, in theory, sets the stage for a friendly backdrop in EM, especially given continued disinflation, which should allow most major central banks to ease rates throughout the year. However, the incoming US administration poses several risks to EMs.
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White papersAnticipation to Reality: Credit Markets for European Insurers in 2025
Mapping a way through a year of tight credit spreads and likely regional divergence in policy and growth.
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White papersFixed Income: Be Prepared for Policy-Driven Volatility
In the wake of electoral shifts, policy changes could add to market turbulence, creating new risks but also opportunities.
