Fixed income commentary
One-day corrections of 3% are always painful, especially so when investors have become so accustomed to low volatility after almost a decade-long bull market. We see the move as most likely a technical sell-off (famous last words) and believe it is probably too early to buy the dip.
The sell-off in the US government debt market has whetted our appetite for an asset that more and more investors now love to hate.
Fears over Italian debt levels have risen sharply following the announcement of the country’s three-year fiscal plan. Should investors be worried?
The ‘yield curve’ has flattened significantly. This is worrying both investors and some Fed members given its track record of anticipating recessions. But has the yield curve become a less timely predictor in recent cycles?
Following the recent price action in emerging markets (EM), we zero in on the effect that currency can have on your EM bond portfolio’s performance. But how much of currency investing is a watertight science, and how much is carried by the wave of popular opinion?
Yesterday, US central bank chairman Jerome Powell told rates to take a hike. While the move was widely expected, are there longer-term ramifications?
The UK opposition Labour party has been leading calls for UK utilities to be brought under public ownership. What could this mean for these companies’ bonds?