All Sovereign Bonds articles
-
White papersThe Eurozone Faces a Deep Recession, Not a Debt Crisis
The eurozone economy will be hit by Europe’s sharpest recession since World War II in the first half of this year, but it will likely withstand its impact before bouncing back strongly in the second half. Asset purchases by the European Central Bank will help member countries to absorb the fiscal hit from coronavirus and provide strong support for sovereign bonds.
-
White papers
Adventures on the Planet of the Apes: Navigating the Low-Rate Environment
Artificially low rates are causing multiple distortions and pockets of heightened risks—and while the current environment may be unprecedented, it need not be incomprehensible. Investors who understand the dynamics driving low rates may be positioned to take advantage of promising opportunities.
-
White papers
Blog | Can Emerging Market sovereigns cope with Covid-19?
Some commentators have expressed concern about a wave of Emerging Market (EM) debt defaults, based on the scale of the Covid-19 shock, declines in commodity prices, the expansion in EM debt since the GFC, the strong US dollar and inadequate public health systems.
-
White papers
An Update On Our ESG Scores
Health security concerns in the time of COVID-19? Global Macro Views highlights five country case studies.
-
White papers
Blog | Assessing the impact of COVID-19 on sovereign yields through healthcare services
In the current volatile market environment, the value of considering non-fundamentals in analysis is gaining more attention than ever before. Within sovereigns in particular, market participants are looking to the resiliency of healthcare services and the ability of governments to put control measures in place in order to achieve an understanding of the impact to the economic outlook of that country.
-
White papers
Blog | Will the Fed catch some of the falling angels?
The coronavirus shock, and enforced shutdowns, come after a period of high corporate debt issuance, in response to very low interest rates. Credit quality has fallen in recent years, judged by the share of BBB-rated bonds currently making up over 40% of the FTSE USBIG Index, and the share of AA and AAA-rated bonds being near 25-year lows
-
White papers
GIAM Macro & Market Research - Market Commentary
Yesterday evening the ECB surprisingly launched its new QE program “to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the outbreak and escalating diffusion of the coronavirus, COVID-19.” At the March 12 policy meeting President Lagarde made clear that the response to the crisis should be “fiscal first and foremost”. However, the dramatic developments since then – with specifically sovereign euro area bond spreads rising strongly – induced further ECB action.
-
White papers
Blog | Bond markets start to look beyond the apocalypse
G7 sovereign bond yields fell sharply in Q1, to all-time lows, as fixed income markets moved much faster than equity markets to discount a major economic shock, and possible recession, from the coronavirus contagion. Since early-March, however, government bond yields have recovered sharply and yield curves steepened, in response to the enormous scale of the fiscal and monetary stimulus unveiled by policy makers (with fiscal stimuli of 20% to 25% of GDP in some cases).
-
White papers
Blog | Climate risk in European sovereigns: leaders and laggards
Europe is a leader in the global efforts to mitigate climate change. Its political classes have lobbied for more ambitious global targets, set strong national targets and are marshaling banks and investors to support climate finance. This can be seen from the relative performance of Europe vs. the rest of the world in cutting carbon emissions and the amount of further efforts to achieve a global warming compliant level of 2° C degrees.
-
White papers
The Outlook for Global Markets 2020
Although global economic indicators appear to have stabilised in late 2019, investors may need to accept a degree of discomfort to find opportunities in 2020.
-
White papers
Credit selectivity at the fore in European high yield bond and senior loan investing
The European leveraged finance market is recognised for its potential to offer a compelling income advantage versus other, more traditional fixed income asset classes. Current market factors such as low default rates for speculative-grade debt and further stimulus from the European Central Bank are expected to continue to lend support to this asset class, which has enjoyed strong performance in 2019. Still, a prudent perspective would view the market as standing on relatively fragile ground in a period of low yields, lackluster economic activity and weakening growth outlook.
-
White papers
Building on 2019’s green bond resurgence
In almost whatever country you care to mention, climate change and social inequality are exploding into the public consciousness. Extinction Rebellion in the UK or the Gilets Jaune in Paris are just two of the more high-profile signs. Yet in the financial markets, too, green, social and sustainability bonds are growing in number and sophistication.
-
-
White papers
FTSE Russell China Bond Research Report - November 2019
Highlights in the November report
-
White papers
Stay agile amid diverging scenarios
After enjoying stellar performance this year, investors will increasingly question whether the global economy will proceed towards a trade war-engineered recession moving into 2020, thereby ending the longest ever bull market. Or, if growth stabilizes at a low level, and potentially rebounds, the cycle could extend even further.
-
White papers
ECB QE2 Starts On A Strong Foot With A Tilt To The Private Sector
ECB QE2 started off on a strong foot, according to data released on Monday regarding the very first week of purchases. The overall increase in holdings of the four QE programmes was quite high for just one week relative to the announced monthly path of EUR 20 bn, as it totalled around half of this amount , at EUR 9 bn. Most of the increase in holdings was driven by the public sector (roughly EUR 4.5bn) and corporate bond programme, at almost EUR 2.8 bn. The CSPP portfolio expanded from EUR177.1bn at the end of October to EUR181.1bn on 8 November. With the data reflecting settled securities, this number should cover just four trading days of purchases.
-
White papers
ABS: Uncovering Opportunities Beyond the (IG) Index
Amid an ongoing search for yield and with a number of potential risks on the horizon, there may be benefits to exploring opportunities outside of traditional corporate and government bonds—such as certain parts of the asset-backed securities (ABS) universe.
-
White papers
Why Are Investors Turning to Emerging Market Corporate Bonds?
Emerging market debt has expanded significantly. Its continued evolution has opened the way for more sophisticated investment strategies which exploit its diversity to improve diversification and manage risks. This is the case of Emerging Market (EM) corporate bonds. The sustained deepening of the asset class will make it even harder to ignore as an attractive investment opportunity. Alongside this growth, the increasing variety of EM corporate issuers offers continued opportunities for investors to diversify.
-
White papers
After the bond rally, beware of bond math’s return
Bond market investors have experienced impressive returns this year. Even mortgage-backed securities, which were at the bottom of the pack for fixed-income sectors in year-to-date performance through September 30, returned 5.60%, which easily eclipsed the 1.28% gained by the fixed-income leader for all of 2018, municipal bonds
-
White papers
Monthly Market Monitor - October 2019
Eaton Vance Monthly Market Monitor presents a concise review of economic and asset class data through clear and impactful charts. Providing timely information across a broad array of markets and investment topics, this guide serves as a helpful resource in providing connectivity between changing market events and implications for investor portfolios.
+Index.png)
