A report from T. Rowe Price Head of Multi-Asset Solutions APAC Thomas Poullaouec and team covering an AU/APAC focus.
MARKET PERSPECTIVE
Uncertainty persists for the global economic outlook as hawkish central banks battle with high inflation in the face of weakening growth expectations.
The US Federal Reserve has signaled a...
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...
Key Insights
Global high yield bonds offer potentially attractive yields, with better value and opportunities in Europe.
Default rates are not expected to return to peaks of the past, even if we enter an economic downturn, given strong corporate balance sheets.
We believe the asset class is well positioned...
Global and Australian market commentary from Jamieson Coote Bonds
The changing bond market
After the rapid rise in the cost of capital the world over, economies are beginning to falter. China, Germany, Holland, New Zealand and now Australia, are rapidly slowing, bringing high quality fixed income back on the radar of...
By Johann Plé, Green Social and Sustainability Bonds Strategy Manager at AXA Investment Management
Over the past few years, the green bond market has grown from a niche market to a credible alternative to the conventional bond market.
So far this year, green bonds issuance is up 25% of the previous...
How the prices of goods and services have changed is not only an enduringly, topical conversation point, it offers a fascinating insight into society and the Australian economy. This article from the Australian Bureau of Statistics looks at how prices and their collection have changed over time to provide...
By Greg Peters, Co-Chief Investment Officer, PGIM Fixed Income
This time last year, Chairman Jerome Powell and the U.S. Federal Reserve were attempting what nearly everyone agreed was impossible: bring down inflation without anything bursting. Yet, even as the Fed hiked interest rates faster than any time in recent memory,...
Excerpts from webinar discussion sharing their perspectives on managing fixed income portfolios in an era characterised by both heightened volatility and changing inflation dynamics from Chris Siniakov, managing director and portfolio manager, Franklin Templeton Fixed Income and Carol Lye, portfolio manager and senior research analyst Brandywine Global Investment Management.
Chris...
Despite the focus on credit spreads, yield has proven to be a more reliable indicator of high yield market attractiveness. With a strong correlation between starting yield and five-year forward returns, and a historically high-yielding environment coupled with low projected default rates, the high yield asset class is well-positioned...
As global interest rates start to ease, investors are faced with new challenges and critical decisions in managing risk while seeking yield in fixed income portfolios. Andrew Canobi, portfolio manager and director at Franklin Templeton Fixed Income, provided insights on how to navigate this shifting environment, encouraging caution with...
