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...
With the Federal Reserve now on an easing cycle, investors are turning their attention to the performance of US long duration Treasury bonds. The key question on the minds of many investors is: When is the optimal time to position in long term bonds, specifically those with 20 year...
Franklin Templeton Fixed Income CIO Sonal Desai disagrees with the Federal Reserve's (Fed's) choice of a larger 50 basis points (bps) instead of a more moderate 25 bps.
"But I agree with most of the underlying assessment of the economy that Fed Chairman Jerome Powell laid out. The latter, I...
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...
Moody’s Ratings says in a new report that Australian mortgage delinquency rates, which increased over the June quarter, will continue to rise moderately over the rest of this year as high interest rates and sticky inflation put financial stress on households.
The latest data for the residential mortgage-backed securities (RMBS) we...
In anticipation of this week's Fed meeting we publish some insights below from Dr. Stephen R. Foerster CFA, award-winning author, and professor of finance at Ivey Business School at Western University in London, Ontario, Canada.
There are always winners and losers when there is a change in interest rates....
From Tim Murray, Capital Markets Strategist, Multi‑Asset Division at T. Rowe Price
The U.S. Federal Reserve now appears almost certain to begin a rate‑cutting cycle in September. Not surprisingly, global stock markets have responded positively to this news. However, investors should understand that rate‑cutting cycles are not all the same.
Historically,...
VanEck recently published a detailed Credit and Fixed Income review. Here are some of the highlights.
Executive summary
If the past 12 months taught investors anything, it’s that being selective and diversified is key to riding the economic cycle. Had investors avoided risk assets on the back of many economists calling...
For most of the last quarter century, real short-term US interest rates have been low or negative, except when monetary policy was being tightened. Today, market pricing expects real short-term rates to remain positive. That is consistent with a soft landing rather than a recession. Bonds have performed well...
