In Brief
Equities tend to wake up late to recession risks.
A buildup of short-term corporate debt should weigh on profits as borrowing costs rise.
It’s probably a good time for investors to stress their cash flow models.
Financial markets are sending mixed signals. The US Treasury market, inverted at...
Private credit in the investing space is a growing market where senior secured debt, asset-backed lending, structured and project finance, mezzanine debt and other forms of unsecured debt happen and exist across a wide range of underlying asset classes.
Attractive returns are available in private markets through simply providing the...
By Pilar Gomez-Bravo, Co-CIO Fixed Income, MFS Investment Management
Lending standards have tightened in the wake of the turmoil in the banking sector in the US and Europe.
Market commentators are focused on whether tighter financial conditions will prompt the Fed to stop raising rates, raise them by less...
Andrew Canobi, Director Franklin Templeton Fixed Income, says that the contrast couldn’t be starker between Australia and the American GDP growth.
“In Q1, 2023 the US economy grew at 1.3% on an annualised basis. Forecasts for Q2 are lower but still positive. Next week, we get the equivalent Q1 GDP...
From Seema Shah, Chief Global Strategist, Principal Asset Management.
A deal to suspend the U.S. debt limit has finally been agreed, putting an end to a months-long distraction for investors. Now, the U.S. Treasury is scrambling to replenish its cash balance, and market expectations for the rate outlook are seeing...
Dispelling Popular Beliefs Summary
For fixed income investors, the current macroeconomic environment presents uncomfortable choices, with policymakers walking a thin line between combatting inflation and averting (or at least mitigating) the recessions that often follow rate rises.
Market participants face a slew of competing concerns:
Rising rates will hurt the asset...
As the US President Joe Biden and House Speaker Kevin McCarthy reach an in-principle agreement to finalise a budget agreement to raise the $US31.4 trillion ($A48.1t) debt ceiling, Stephen Dover, Head of Franklin Templeton Institute presents his views on the current US debt challenge and the long-term implications for...
Investors in sub investment grade (sub-IG) private debt are facing the prospect of their first meaningful default cycle later this year and into 2024. In fact, the lure of comparatively higher yields in the post-GFC (i.e. low rate) environment, along with the promise of no volatility appears to be unravelling.
We were reminded...
Apostle Funds Management’s Steven Spearing provides insight in light of market volatility, geopolitical pressures, the risk of recession and what implications this has on asset managers.
Systematic risk in financial markets is alarmingly high
Strong headline returns across asset classes have masked the concerning level of volatility in the financial system...
