Insights

Let’s not forget that the BoE dropped rates from 0.75% right down to 0.1% at the start of the COVID-19 pandemic back in March 2020, having only managed to put through two hikes in 2017 and 2018. It has changed course sharply before.

In a sub-zero world, the opportunities to generate income have dwindled. Just keeping yields above zero is proving a challenge to the most experienced of bond investors. However, the emerging market corporate bond world offers a two-trillion US dollar investment universe where yield is abundant.

While bank treasurers may have to work a bit harder this year-end to formulate wholesale funding plans, the ABS market that they may be more reliant on going forward is experiencing a strong resurgence, which should ease the process of weaning off central bank funding.

This looks to us like a buy-into-the-dip opportunity, but investors should be wary of taking on too much rate sensitivity as the move in risk-free curves is likely to persist until the rate hike cycle is actually on the way.

In this Viewpoint, Senior Portfolio Manager Sergey Goncharov reveals how the Emerging Market Corporate Bonds team aims to generate stable returns with a fixed maturity investment.

From time to time, Treasury yields actually become the source of risk for financial markets.

On Wednesday, the Fed moved one step closer to tapering and even put quite a clear timeframe for it, while on Thursday, the Bank of England openly talked about rate hikes.

The unravelling of Evergrande is causing jitters across markets. In this Market Update Carlos de Sousa explains why Evergrande is not too big to fail and how investors should look past the noise.

Our base case is for a continuation of quite high growth and a modest inflation overshoot. For bond investors, positioning for stagflation could be a dangerous trade if that base case bears out