From Chief Investment Officer, Michael Goosay. This is an extract from Principal Asset Management’s 4Q24 report.
It has certainly been an eventful quarter for fixed income. A significant repricing of Fed expectations and the start of the rate-cutting cycle has finally brought the return of positive-sloped yield curves. The combination...
From Martin Rea, Senior Consultant, JANA Investment Advisers about the impact of Hurricane Milton on the Catastrophe Bond Market.
The worst seems to be over. Hurricane Milton made landfall in central-western Florida as a Cat 3. It has caused severe wind and flood damage but has now passed into the...
Commentary on key market themes for Q4 2024 from Seema Shah, Chief Global Strategist at Principal Asset Management.
A globally synchronised downturn produces a globally synchronised policy easing. As global growth has weakened, policymakers have started to respond. The U.S. Federal Reserve is committed to avoiding recession, while China’s recent...
By Andrew Lakeman of Atlantic House, a London-based boutique investment manager specialising in derivatives-based strategies.
The fixed income landscape has shifted significantly in recent years, driven by rising inflation, volatile interest rates and economic uncertainty. Traditional fixed income allocations have faced challenges, particularly those with longer durations, and especially those...
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...
If you had been watching Chinese media for economic news over the past few months you might have noticed something odd.
There's been virtually nothing. No comments on data, no policy developments – basically radio silence when it came to the economy.
Skepticism grew among investors and outside observers of China...
The Fed chose a bold first move to ensure the "soft landing" can remain soft. The ensuing trajectory remains very dependent on the US elections outcome though.
The ECB still sounds more cautious, even if they started easing earlier. We think they should be more decisive.
Bond returns...
In brief
■ Capital cycles are imperfect, showing a tendency for booms and busts.
■ Over the past year, investors have focused on the economy and interest rates when assessing risk.
■ That emphasis may be misplaced because that wasn’t where the boom was.
The capital cycle drives booms and busts
Capitalistic economies allocate...
Written By Chamath De Silva Head of Fixed Income, Betashares
With the Fed officially commencing its easing cycle with a 50-basis point cut, much of the debate now shifts to the softening US labour market and the degree of further easing that’s required.
However, it’s worth remembering that the Fed is quite...
