John Lloyd and John Kerschner, Fixed Income Portfolio Managers at Janus Henderson Investors review the best-performing US fixed income sectors of 2024 – what worked, what didn’t - and what it means for investors going forward.
There was significant dispersion in returns among various fixed income sectors in the United...
From Andrew Canobi, Director, Franklin Templeton Fixed Income
"Today, the Reserve Bank of Australia (RBA) announced its first rate cut since 2020, reducing the cash rate by 25 basis points (bps). Historically, when the RBA shifts policy- whether easing or tightening- it tends to move in cycles rather than making...
Global Asset Allocation Viewpoints and Investment Environment by T. Rowe Price Australia Investment Committee, as at 31 January 2025.
MARKET PERSPECTIVE
We have a more cautious view as broadly resilient global growth and receding inflation trends could be at risk to increased policy uncertainty, particularly around trade threats.
U.S. growth exceptionalism leaves...
— Immigration restrictions may reduce the U.S. labor force by 2.1 million people, which could cause upward wage pressure and push inflation higher.
— We expect new immigration restrictions to impact the labor supply quickly, likely by the middle of 2025.
— Resurgent inflation would, in turn, influence Federal Reserve decisions...
Bond income returns potentially higher in 2025
Confidence in US growth should sustain performance
Asia's economy has become increasingly challenging.
Many bond investors have been enjoying higher income returns as the average rates (coupons) being paid on bond indices has been rising since 2021 and are likely to continue...
ClearBridge Investments' Head of Economic and Market Strategy, Jeff Schulze has provided comments following the release of US data overnight:
"The 'wait and see' Fed is going to be waiting longer than anticipated after a red-hot January CPI inflation report. Prices jumped more than expected and in a broad-based fashion...
Key takeaways
• Markets are increasingly taking their cues from governments, with fiscal spending and policies becoming key drivers of growth and inflation.
• The US Federal Reserve may take a measured approach to lowering interest rates, with elevated rates potentially translating into opportunities.
• Risk premiums have tightened and bond investors...
Markets were recently rattled by three executive orders announcing tariff increases on Mexico, Canada, and China, marking an opening salvo of President Donald Trump’s trade war. With Europe likely next in line, uncertainty remains high—despite a 30-day delay on tariffs for Mexico and Canada—fueling further market volatility.
Trump’s opening tariffs...
Emma Lawson, Fixed Interest Strategist - Macroeconomics in the Janus Henderson Australian Fixed Interest team, provides her Australian economic analysis and market outlook.
Market Review
The market moved to price a definitive near-term Reserve Bank of Australia (RBA) easing. The Australian bond market, as measured by the Bloomberg AusBond Composite 0+...
By Ken Hanton, Independent Fixed Income Specialist
What a year 2024 turned out to be for the Australian securitisation market. For the first time ever, there were 100 new Residential Mortgage Backed Securities (RMBS) and Asset Backed Securities (ABS) deals priced in the Australian public market for a record breaking...
