By Haran Karunakaran, Investment Director at Capital Group
Key takeaways
The last few months have seen a significant change in the macroeconomic environment. Policy rates appear to have peaked and central banks around the world are gradually looking toward a period of rate cuts.
This shift from hiking to cutting...
by Benoit Anne, Managing Director - Investment Solutions Group, MFS Investment Management
Can US government bonds withstand the growing mountain of debt?
We have a fiscal problem in the US. At over 6% of GDP, there is no denying that the US deficit is abnormally large. Historically, similar fiscal gaps have...
Despite data over recent months creating a credible case for interest rates to remain higher for longer, major central banks have continued to fuel optimism of rate cuts this year and investors have increasingly been drawn into locking in the attractive yields across fixed income markets.
Demand for yield has...
Next 10 years could see higher growth and lower inflation compared with our 2023 long-term forecasts, partly due to productivity gains from the adoption of Artificial Intelligence (AI). Delays in climate policy will increase risks and result in greater economic costs moving towards 2050.
10-year expected returns are...
Ninety One's Multi-Asset Credit team explains how the bank capital (AT1) market has staged a remarkable recovery since last year's turmoil following the collapse of Credit Suisse. The team notes that current valuations mean selectivity is key, and credit investors should also explore other parts of the capital structure.
Having...
From Chris Iggo, Chief Investment Officer, Core Investments, AXA Investment Managers.
It feels like boom time. Markets are hitting all-time highs. The US economy continues to defy expectations, adding 303,000 non-farm jobs in March. There are green shoots of recovery elsewhere in the world. The idea that the Federal Reserve...
By Greg Peters, Co-Chief Investment Officer, PGIM Fixed Income
This time last year, Chairman Jerome Powell and the U.S. Federal Reserve were attempting what nearly everyone agreed was impossible: bring down inflation without anything bursting. Yet, even as the Fed hiked interest rates faster than any time in recent memory,...
Global corporate credit metrics are likely to improve more for high-yield (HY) issuers than for investment-grade (IG) issuers over the next two years, says Fitch Ratings. Greater revenue growth and margin expansion, along with lower cash interest expense will be drivers, according to aggregate forecasts for a constant cohort...
A renewed US-China trade war under a potential second Trump presidency could disrupt global growth, financial markets and supply chains through aggressive tariff measures against China and other trading partners, according to Western Asset, a leading global fixed income investment manager and part of Franklin Templeton.
Robert Abad, product specialist...
A resilient US economy (owing to consumption and wealth effects) and strong earnings expectations for the year are driving the recent upside in equities and increase in yields.
The big questions are whether this can continue given the already strong market movements, and whether these earnings expectations are credible asks...
