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...
By Steven Spearing – portfolio manager Apostle funds management.
Why incorporating floating rate securities as part of a fixed income portfolio can help investors manage interest rate risk and improve capital stability.
Central banks around the world have been raising interest rates in 2022 to bring high levels of inflation under...
By Michael Della Vedova, global high yield portfolio manager at T. Rowe Price
Volatility has propelled high yield bond spreads to their highest levels since November 2020, but we believe the asset class’s fundamentals remain solid, however, and that current valuations do not reflect its underlying strength. If we are...
Amundi’s Global Investment Committee recently published an excellent paper on investing in second half 2022. Here we republish its Top Convictions, as well as its central and possible alternative economic scenarios. While covering multiple asset classes, we focus on the fixed income elements, including their Fixed Income suggestions.
Top Convictions
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By Michael J. Bazdarich, PhD, Product Specialist at Western Asset Management
US inflation today is the worst since that of the late-1960s and 1970s, but the current experience differs from that previous period in important respects. Unlike 55 years ago, the current inflation has emerged without any true boom in...
By Erik S. Weisman, Chief Economist and Portfolio Manager, MFS Investment Management
The jury is out on whether the United States economy will be able to avoid a hard landing
We believe the probability of a recession has risen considerably, reflecting concerns over the threat of policy overtightening by the US...
