By R.J Gallo, senior portfolio manager at Federated Hermes
The direction of US Treasury yields in the new year hinges heavily on the uncertain economic impact of the incoming Trump administration's policies.
Tariffs. Economics textbooks tell us tariffs drive up prices and decrease volumes of imported goods, prompting less trade and upward pressure on...
Franklin Templeton has identified 'preparedness' as the overarching theme for 2025, cautioning investors to adjust their expectations after two years of superior returns. "It is time to prepare for a more realistic world of more moderate returns punctuated by occasional setbacks," says Stephen Dover, Chief Investment Strategist and Head...
The outlook for 2025 is broadly positive for fixed interest investors, with actively managed strategies well positioned to capitalise on opportunities and mitigate risks within the supportive policy environment.
Navigating fixed interest portfolios in 2025
As we look forward to 2025, the outlook for financial markets is positive, influenced by government...
From Federated Hermes' Patrick Marshall, Head of Private Credit.
The APAC direct lending is continuing to expand. Australia has been at the forefront of this expansion in 2024, on the back of high yields due to relatively high interest rate environment. This coupled with strong deal activity has made the...
High returns from high yield
On the bond side the clear winners have been leveraged and high-yielding fixed income assets which sit right on the efficient frontier – the highest expected return for a given level of risk, or vice versa. Indeed, when I rank returns against realised volatility, high...
By Ken Orchard, Head of International Fixed Income at T. Rowe Price
Despite the U.S. Federal Reserve starting its monetary easing cycle in September, yields could move higher if the central bank does not cut as deeply as markets expect. High yield bonds and bank loans remain the two fixed...
The escalating geopolitical tensions driven by great power rivalries and conflicts have made defense a critical focus for policymakers and investors, according to Kim Catechis, Investment Strategist at the Franklin Templeton Institute. These geopolitical pressures, comparable in impact to climate change, are now immediate, direct and global in reach,...
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...
