Fixed Income:
Variety is healthy

The most important asset allocation decisions for global investors ought to originate by answering a seemingly simple question: Where in the cycle are we?

The Federal Reserve minutes for meetings held on the 3-4th May were released last night, and for markets that have been beaten up by rates volatility, they provided some interesting takeaways.

Head of Macro Strategy Platform Yann Lepape and his team give their latest views on Fed peak hawkishness, how the Chinese zero-Covid policy is affecting the rest of Asia and the UK’s battle against multidecade high inflation.

European high yield supply has endured its weakest start to a year in over a decade. The total supply to May 13th equalled €12.89bn, a fall of 75% year on year, with the market effectively closed for a large portion of the year.

With investors having endured a painful period of rising yields in 2022, Mark Holman looks at whether rates weakness or credit spread widening has been most to blame.

Credit Analyst Jim Stahl tunes into the US radio industry and explains why radio is experiencing a resurgence thanks to digital marketing and podcasting.

Consumers are being hit from seemingly all angles at the moment. Higher interest rates are coming, higher inflation is already hitting their pockets hard and economic growth is expected to slow.

The lockdown in Shanghai is sending shockwaves through markets while the Chinese government is trying to handle the health crisis without losing face. Still, things seem to have stabilized, and there are hopes that the leadership will crank up the economy. Markets would benefit, and so could stock pickers, according to our mtx equity experts.

Join Vontobel’s Simon Lue-Fong and Sam Knox of Institutional Investor to learn about the key findings from an exclusive survey of 300 asset-owning institutions globally, and understand how EM fixed income can deliver a combination of yield, diversification and ESG alignment in the absence of reliable alternative options.