Fixed Income

For the fixed income fanatics amongst us, June was always going to be one for the books with all three of the major central banks meeting, elections, and continued data.

From the potential for maintaining a status quo that has delivered stability and decent returns in the last few years, to the risks of renewed volatility during a potential second Trump presidency, our latest article from Fixed Income on the upcoming elections in Mexico provides a comprehensive analysis.

TwentyFour Asset Management’s Chris Bowie, takes a closer look at how he is thinking about duration within fixed income portfolios and shows how following conventional wisdom on duration might prove costly for some investors this year.

Quality investing in the fixed income sector is as much about making sure that we avoid the losers as it is about trying to pick the winners.

The first four months of this year have seen €11.6bn in gross Additional Tier 1 (AT1) issuance from European banks, across euros, dollars and sterling markets.

Following the aggressive rates rally at the end of 2023, Q1 saw notable gains, with inflation surpassing expectations. Johnathan Owen, Portfolio Management, highlights a more promising inflation outlook and its implications for the Investment Grade team. 

Douglas Charleston, Partner & Portfolio Management, concludes the first quarter in 2024 for the Asset-Backed Securities team, noting that while major economies remain resilient, the rates markets have undergone significant shifts, with central banks reassessing their rate cut expectations.

George Curtis, Portfolio Management, discusses the Multi-Sector Bond team's performance in Q1 2024, highlighting the improved clarity in deciphering central bank actions. With an anticipated central bank rate cut as the next move, the team remain confident in navigating the market's developments.

The end of rising interest rates in Europe and the US, attractive yields, and lower-than-expected default rates mean investors can get higher income without taking on as much risk as they had to in the past. In our view, less volatile, high quality fixed income products are poised for strong performance in 2024.

Over the last decade investors have been forced to broaden their horizons, but many investors continue to overlook Emerging Market Local Currency Debt. Our Fixed income team offers five reasons why you should think about giving emerging markets local currency a more permanent allocation in your investment portfolio.

Almost a year ago to the day, we were in the midst of banking sector turmoil, which started off with regional banks in the US and spilled over to Europe, eventually culminating in the forced merger between Swiss banks UBS and Credit Suisse.  

After some troubled years, bonds are back. In a big way. Our team explains the reasons why we believe bonds are poised to be one of the most attractive risk/reward propositions of the coming year.