From Dan Farmer - CIO of MLC Asset Management
Fixed income
Market pricing of the Fed appears overdone in our central case soft-landing view, and with growth likely to re-accelerate through 2025 we see yields as close to a low end of an expected trading range. Fixed income will still provide...
I'm not sure how others remember the first Trump presidency.
For me, I felt like I needed to be prepared for anything. And like anyone in financial markets, checked Twitter constantly to see what crazy thing Trump may have said that may have moved markets.
It was usually an initial shock...
In Brief:
Investors welcome deregulation under Trump 2.0
The US government played a dominant role in financial markets under the last three administrations
How might stocks fare with a smaller government?
Markets like the idea of less government
With the best post-election day performance for the S&P 500 in decades and...
From Mawer Credit Team
High yield spreads continue to tighten. As risk premiums fall, and economic and political conditions appear positive for corporates in general, it is tempting to reach for yield in credit markets. As Howard Marks of Oaktree points out, the all-in yield (benchmark yield plus risk premium)...
Income Asset Management (IAM) proposes two model portfolio solutions for wholesale investors.
The two models provide investors with a conservative and transparent portfolio allocated to;
(i) Wholesale Investment Grade (WIG) Model
(ii) Tier 2 (bonds) Model
These portfolios aim to generate a higher risk-adjusted income stream, whilst preserving capital.
Portfolio Construction
We believe the case...
From Harvey Bradley, Senior Portfolio Manager at Insight Investment
High real policy rates provide flexibility to cut
With inflation having declined significantly from peak levels, real policy rates have moved from deep negative territory to the highest levels seen since before the global financial crisis (see Figure 1). It is difficult to...
A trade war is not good for anyone. If it materialises there will be negative implications for inflation and growth. This is likely to impact both markets and individual company performance. It won't solve the US's trade issues either. But investors are in wait-and-see mode until the details of President-elect...
As we look ahead to 2025, the forces that drive global credit are rife with mixed signals and extreme valuations. As evidenced over the last year, an unconstrained approach to credit investing can utilise a tactical approach, which has the potential to generate alpha amid dynamic market conditions.
Investors have...
The Australian bond market just had its best third-quarter performance since 2011 and the strongest start to a year since 2020. But while investors may be eagerly anticipating a rate cut from the Reserve Bank of Australia (RBA), playing the waiting game can be a risky strategy.
Timing the stock...
For some investors, credit spread valuation may be perceived as a major headwind for fixed income. But we are of the view that the outlook for fixed income total returns remains robust in the period ahead despite the current level of spreads, which looks stretched by historical standards. This...
