Potential investment implications of IFRS 9 on bond and equity investment strategies like hedge accounting and derivatives.
This paper examines the U.S. commercial mortgage loan (CML) market and U.S. insurers’ investments in CMLs.
Markets, economy, stocks, growth, global, fixed income, international, asset classes
Learn more about J.P. Morgan’s views on fixed income, the economy and markets.
We cut the chances of recession to 25% after a thaw in the trade war and a year of rate cuts; our forecast is for sub trend growth. Favored sectors include emerging market local currency debt and higher rated short-duration securitized credit.
In this paper, we assess the potential risks associated with such a strategy by stressing capital requirements using spread-implied ratings.
Measuring book yield correctly
Reaching for yield, which we define as buying bonds with wider spreads after controlling for sector and rating impacts, is a topic that frequently arises in the life insurance industry.
The arrival of the bond bear market, continued normalizing of monetary policy and need to finance expanding U.S. budget deficits, long-term rates are set to rise.