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...
By AXA IM’s Chris Iggo
The prevailing narrative remains one of impending global interest rate cuts and the avoidance of recession. In terms of portfolio management, I have not seen much to spur on any significant changes. High yield bonds have demonstrated their resilience to equity market volatility, but some...
From Principal Asset Management
With the economy slowing and inflation moderating, the Federal Reserve (Fed) should be gaining the confidence it needs to start rate cuts in 2024—possibly as early as September. While the timing of the first cut is still uncertain, what is clear is the Fed’s desire to...
By Alan Siow, co-head of emerging market corporate debt, Ninety One
The new regime
The shift to a new macroeconomic regime is among factors that have redrawn the fixed income investment landscape in the past few years. Major economies like the US are only just getting to grips with inflation –...
Elizabeth Moran interviews Hui Sien Koay, Head of iShares Fixed Income Product Strategy, APAC ex-Japan, BlackRock, and James Waterworth, Director, Wealth Distribution Australia, BlackRock, on how investors are currently thinking about fixed income within a strategic asset allocation or total portfolio level.
Key take-aways:
Current interest rates, won’t go back...
This has not been your typical business cycle. The writing was on the wall: a recession was coming. All signs pointed to that inevitability. The only problem was, the old toolbox apparently no longer works. Take the US yield curve, for a start. The treasury yield curve has been...
From Moody's Ratings
Australian US-dollar issuance is dominated by investment-grade issuers that benefit from Australia's (Aaa stable) diversified economy, supported by strong immigration-led population growth and deep pools of capital stemming from its large superannuation (pension fund) sector. Australia’s well-capitalised banks, the largest issuers of Australian US-dollar bonds, are aptly...
As US direct lending continues to grow, the market is getting increased attention from actors across the financial system – not all of it favourable. Michael Smith Co-head US Private Debt, Muzinich & Co, explains why understanding the nuances is essential for investors considering an allocation to the asset...
