Themes and implications from the Global Fixed Income, Currency & Commodities Investment Quarterly
What are the bright spots in fixed income?
Emerging market debt is underpinned by a solid fundamental backdrop, but the local index is at all-time tights. A differentiated approach seems warranted.
The Bank of Japan has reacted to a persistently flat yield curve As demand for duration sendsby adjusting its Rinban operations and by signalling that a potential rate cut is around the corner. But will these attempts to steepen the curve be sustainable?
Currencies through an ESG lens
Given our view that the global economy is just as likely to contract as expand over the next three-to-six months, is it now time to position fixed income portfolios more defensively?
The Bank of Japan has reacted to a persistently flat yield curve by adjusting its Rinban operations and by signalling that a potential rate cut is around the corner. But will these attempts to steepen the curve be sustainable?
As one central bank after the other announces cuts to interest rates, we continue to believe that buying duration will be worthwhile for investors, even with yields close to record lows.
How can investors potentially achieve greater total return in an unconstrained fixed income portfolio?
Investment grade and high yield credit in emerging markets have delivered divergent performance over the summer. Could this trend reverse, or is investor caution warranted in the high yield space?