While financial crises are often similar, the excesses of each cycle are unique.
Today’s excesses resulted from central bank policies designed to counter an extended period of slow growth and low inflation.
Amid weakening demand and contracting margins, corporate balance sheets appear increasingly vulnerable.
Financial market crises tend to...
Paul O’Connor, Head of Multi-Asset, Janus Henderson Investors, considers the prospects for growth and interest rates as we move into the final few months of a seismic year for global financial markets.
Although we are still only three-quarters of the way through 2022, it is already clear that this will...
Article sourced from Kapstream Capital
For a time, when interest rates were low, the benefits of investing in fixed income was reduced.
Investors, in their chase for yield, reallocated into higher-yielding and more volatile sectors within the asset class, either going down the credit spectrum, capital structure or giving up liquidity...
From Mark Dove, Junior Credit Portfolio Manager, Federated Hermes Limited
With a global recession looking more and more likely to materialise in the near future, investors will be looking for the best place to allocate their portfolios over the coming months. In our view, investment grade credit looks attractive on...
This article has been submitted by Income Asset Management
In consideration of further rate increases from the RBA, fixed income markets are largely ‘pricing in’ the current rate hike cycle. Whether the market is right or not is another matter and often hard to predict. The market will form a path on...
With surging inflation amid record-low unemployment over the past 18 months, discussions about “secular stagnation” have receded into the background.
However, today’s high inflation stems from severe supply-side shocks (war, sanctions) and interruptions to supply chains (due to the pandemic), coupled with large but temporary increases in spending (fiscal stimulus,...
Central banks are signalling higher rates and while the market already prices in expected rate rises, investors are unsure when rate hikes will stop. Preference is being given to floating rate securities.
This article compares three floating rate ETFs.
Each of the three ETFs offers exposure to floating rate bonds, where...
Mutual Limited CIO Scott Rundell has provided some commentary following the US CPI data figures released overnight:
Overview: well, that was fun
Markets have reacted violently to what I would consider to be a modest miss in US CPI. Stocks and bonds were smoked, taken to the principal’s office...
US inflation came in higher than expected overnight, with prices climbing 8.3% compared to a year ago. The acceleration points to a stubbornly high cost of living for Americans and increases the likelihood of another 75 basis points rise to the US Federal Funds rate. In this piece, Seema...
