Global Fixed Income Compass

Knowledge. Shared (Q2 2019)

Quarterly insight from our fixed income teams to help clients navigate the markets and opportunities ahead.

Have we returned to a Goldilocks economy?

Jim Cielinski, Global Head of Fixed Income, provides his perspective on some of the key macroeconomic factors that are driving fixed income markets.

Key takeaways

  • Markets are eager to price in a Goldilocks period, but given major central banks are limited in terms of the stimulus they can inject from here, the ability to navigate the narrow course where growth and inflation are just right will be extremely difficult.
  • Absent a policy mistake by the Fed, the odds of recession in 2019 appear low; however, it will be prudent to keep an eye on whether growing debt, deteriorating margins and the global slowdown tip the balance in 2020.
  • While rates are low, fixed income still offers diversification benefits to a portfolio, particularly as the cycle progresses. In terms of corporate credit, in these late stages, it will be critical to emphasise companies exhibiting prudent balance sheet management.

Insights from our global teams

Global Bonds

Our Fixed Income capabilities

Janus Henderson Fixed Income provides active asset management solutions to help our clients meet their investment objectives. Over the past four decades, our global investment teams have developed a wide range of product solutions to address our clients' varied and evolving needs. From core and multi-sector investing to more focused mandates, we offer innovative and differentiated techniques expressly designed to support our clients as they navigate each unique economic cycle. The capabilities of these teams are available through individual strategies or combined in custom blended solutions.

While shared knowledge across teams and regions encourages collaboration and the debate of investment ideas, our investment teams are not bound by a top-down house view. Instead, each team retains a defined level of flexibility within a disciplined construct. Our portfolio construction processes are governed by a rigorous risk management framework with the intent of delivering stronger risk-adjusted returns. Further, we believe transparency is the foundation of true client partnerships; we seek to earn and maintain our clients' confidence by delivering robust and repeatable investment processes and by providing firsthand insights from our investment professionals.

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