By Jonathan Butler, Head of European Leveraged Finance and Co-Head of Global High Yield, PGIM Fixed Income
Rapidly changing global markets have become a key feature of the current environment. While deciphering the implications of differences in GDP growth and relative value can be disorientating, it now works in favour...
Following yesterday's RBA rate hike, Mutual Limited CIO Scott Rundell shares his post mortem:
The RBA surprised markets by hiking the official cash rate an additional +25 bps to 3.85% yesterday, and released a particularly hawkish statement. Markets and rates pundits alike were expecting another pause given the RBA’s prior...
From Silvia Dall'Angelo, Senior Economist at Federated Hermes Limited, London
US economic data had a generally softer tone this week, suggesting the impact from past monetary tightening is gradually spreading across the real economy, while the recent episode of stress in the banking sector has probably taken a toll on...
In this educational article, Elizabeth Moran shows how Credit Default Swaps can forewarn investors of trouble ahead.
Large institutional investors with significant bond holdings will sometimes take out insurance against default and these contracts are known as Credit Default Swaps (CDS).
The buyer of the CDS will pay a fee on...
Hazel Ilango is an Energy Finance Analyst, Debt Markets at the Institute for Energy Economics and Financial Analysis (IEEFA).
Climate risks may be on the verge of lowering credit ratings while assessors of debt issuers dawdle on a rethink of their evaluation models. The outlook is bleak but bearing down on...
Global Asset Allocation Viewpoints and Investment Environment by T. Rowe Price Australia Investment Committee, as at 31 March 2023.
MARKET PERSPECTIVE
Lagged impacts of central banks’ tightening to weigh on growth and earnings outlook in the back half of the year with expectations of lower inflation, but still above central...
Five bond strategies to help investors navigate evolving markets. From T. Rowe Price.
KEY INSIGHTS
The pain of 2022 has reset bond yields to meaningfully higher levels that offer investors higher potential income and a margin of safety.
With diverse sectors, fixed income markets offer solutions that can potentially help...
Bad monetary policies often lead to economic and financial turmoil
While today's banking crisis is of a different scale than the global financial crisis, it could accelerate the pathway to recession
The stress caused by the unwinding of years of bad policy may create significant opportunities to generate...
From Matt Simpson, Senior Market Analyst, City Index
The RBA held interest rates at 3.6%
This breaks a record streak of 10 consecutive hikes totalling 350bp
Statement reference that policy ‘may’ need to be tightened (previously ‘will’ be tightened)
AUD/USD pulls back from yesterday’s highs, but a weaker USD...
After the worst returns for fixed income in generations in 2022, bonds are back in demand, driven by higher bond yields and volatile equity markets. But some bonds offer greater appeal than others, and ‘fallen angels,’ in particular, offer quite favourable risk-adjusted returns.
‘Fallen angels’ are bonds which have been...
