By Michael Della Vedova, global high yield portfolio manager at T. Rowe Price
Volatility has propelled high yield bond spreads to their highest levels since November 2020, but we believe the asset class’s fundamentals remain solid, however, and that current valuations do not reflect its underlying strength. If we are...
The correlation between bonds and equities is very high and not likely to correct anytime soon. So what is the solution? More fixed income. A higher correlation means that overall portfolio risk has gone up, and the total risk can be managed down through a higher allocation to fixed...
From Flavio Carpenzano, Haran Karunakaran, and Manusha Samaraweera, Investment Directors at Capital Group.
Key takeaways
• Fixed income markets could offer compelling investment opportunities alongside continued lower inflation and central banks entering the easing cycle.
• The role of fixed income in portfolios is back. Bonds now offer attractive levels of income...
Janus Henderson Investors Portfolio Manager Jason England and Global Head of Fixed Income Jim Cielinski explain why investors should prepare for "high for longer" rather than positioning bond allocations for an imminent dovish pivot.
The market has framed the last few Federal Reserve (Fed) meetings as "does no increase mean...
In a market where risks have risen, diversifying within asset classes, particularly defensive asset classes, is just as important as having a sound mix of growth and defensive assets, writes Justin Tyler, Director, Daintree Capital.
Diversification is a central strategy used by asset allocators to lower a portfolio’s risk and...
The Fed sent a strong signal that interest rates will remain higher for longer, as Franklin Templeton Fixed Income chief investment officer Sonal Desai has long predicted.
The Fed also started to acknowledge that the natural real rate of interest is higher than it thought.
Desai shares her latest insights on...
Jay Sivapalan, Head of Australian Fixed Interest for Janus Henderson Investors, discusses the very different investment landscape we find ourselves in after the pandemic and how fixed interest investors can navigate the very different path ahead.
Key takeaways:
Dominant macro themes, including the restructuring of global trade, national security and...
There’s growing consensus that rates have peaked and now is an opportune time
to reassess investment options, prime case in point is Term Deposits (TDs) versus actively managed bond funds.
At the end of November 2023, the Yield to Maturity on the Australian Composite Bond index had surged to 4.53%, compared...
Amundi’s Global Investment Committee recently published an excellent paper on investing in second half 2022. Here we republish its Top Convictions, as well as its central and possible alternative economic scenarios. While covering multiple asset classes, we focus on the fixed income elements, including their Fixed Income suggestions.
Top Convictions
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