One of the great advantages of managing benchmark unaware credit strategies is the greater avenues at your disposal to extract higher risk returns through a cycle. Indeed, as with the Scorpions’ famed 1990 ballad, we believe that ‘listening to the wind of change’ is helping to keep us ahead...
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...
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...
This article was part of an Ardea Investment Management paper title ‘Five Key Questions on Duration’, published on 25 July 2022. It helps investors assess whether bond yields provide adequate returns and uses 10-year government bond yield as an example.
The fixed income market is currently facing somewhat binary tail...
By Robert Tipp, Chief Investment Strategist and Head of Global Bonds at PGIM Fixed Income
Summary
Most developed market (DM) bond markets have already priced in substantial interest rate increases
Bank of Japan sees inflation trend as an opportunity
Chinese bond market bucks bear market trend
Will we see a...
