All Sovereign Bonds articles – Page 3
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White papersESG Engagement in Sovereign Debt: Key Questions That Must be Asked
When it comes to emerging markets sovereign debt, successful engagement often comes from asking the right questions and monitoring the right metrics.
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White papersWeakening Growth Outlook to Eventually Favor Euro Rate Risk
European policymakers face a dilemma: continue to hike interest rates to combat inflation or ease off to stimulate growth.
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White papersEmerging Markets Debt: Springtime in January?
With the inflation and geopolitical fogs around the world dissipating, and a monetary policy pivot potentially in the cards, 2023 is shaping up to be a promising year for emerging markets debt.
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White papersCross Asset Investment Strategy - November 2022
Tightening monetary policy and slowing economic growth lead us to keep a cautious stance on risk assets, in light of potential liquidity and refinancing issues, particularly in low quality credit. We prefer US IG (over HY) segments and selectively like EM hard currency debt.
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White papersGlobal Investment Views - November 2022
Central banks (CBs) are trying to work out how far they should go in terms of their aggressive tightening talk. We see four main factors to consider when assessing whether we will see pivots from CBs: (1) The still strong job market does not support a shift in stance from the Fed.
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White papersSchooling the Sovereigns
Bond markets appear to be disciplining policy inconsistencies, both within sovereigns and among them.
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White papersCross Asset Investment Strategy - June 2022
The repricing of a more aggressive Fed stance has been brutal as the 10Y UST yield temporarily reached the 3% threshold, falling close to 2.75% recently on economic growth concerns. We think investors should move towards neutrality on duration in the US and Europe, whereas in credit, they should focus on quality and stay cautious on higher-risk segments in Europe.
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White papersMarket Scenarios and Risks - April 2022
We keep the narratives and the probabilities of our central and alternative scenario unchanged versus last month. The war in Ukraine could evolve in several ways over the coming weeks (see Ukraine crisis tree) with significant implications on economic and financial markets.
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White papersInvesting Through Climate Risk in Emerging Markets Debt
In this Q&A from the Nordic Fund Selection Journal, Kawtar Ed-Dahmani and Ashwinder Bakhshi discuss where they’re seeing the most material effects from climate change across emerging markets debt today—and what they’re anticipating going forward.
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White papersInvestment View: Off Crutches
The global economy has hit a speed bump, built on the Delta variant and supply chain issues; we expect growth to find a floor in H2, as the fourth Covid wave recedes, and China cautiously eases policy. But supply constraints are proving sticky, and surging commodity prices are a new threat to the consumer outlook. That risk deserves hedging.
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White papersEM Debt: Fundamentals Back to the Forefront
The EM growth picture remains positive, but with the Fed’s hawkish pivot toward quarter-end, sovereign and corporate debt look better positioned than local currencies.
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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.
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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 papersAlternative UCITS: delivering on diversification
Europe’s Alternative UCITS funds have delivered on their diversification promise during the coronavirus-related market turbulence of 2020.According to Bernadette Busquere Arnal, European Head of Hedge Fund Research and Nathanael Benzaken, Chief Client Officer, the Alternative UCITS sector will continue to grow and Lyxor is positioning its fund platform to benefit clients in future.
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White papersBonds that are not really binding
Should the €2,800 billion in sovereign bonds or the equivalent* that are on the European Central Bank’s balance sheet be treated just like any other bonds? This question, which has come up regularly over the past several months, is far from being of mere academic interest.
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White papersInvestment View - The New Age of Financial Repression
Given the surge in government and corporate debt, policy will inevitably focus on making this load sustainable: financial repression, spearheaded by central banks, is set to reach a whole new level.
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White papersEMD: Further Room to Run?
Emerging markets debt rallied strongly in the second quarter—and while risks remain ever-present, the asset class may benefit from continued monetary stimulus and the potential for a sharper economic bounce-back in the second half of the year.
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Asset Manager NewsImplications of the global debt explosion
Global debt was at an unprecedented level before Covid-19. With the subsequent policy response injecting liquidity into most parts of the world economy, the debt predicament is set for a worse path. We explore the implications for sovereigns, financials and corporates, particularly from the perspective of credit investors.
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White papersAdventures 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.
