For financial professionals in Finland

Strategic Fixed Income: the turn of the global liquidity cycle

Jenna Barnard, CFA

Jenna Barnard, CFA

Co-Head of Global Bonds | Portfolio Manager


21 Jun 2018
3 minute watch

Jenna Barnard, Co-Head of Strategic Fixed Income, explains how the team have viewed the bond markets through the prism of interest rate divergence for a number of years now.

Key points:

  • There is a clear divergence in interest rate policies within the developed markets, with the US Federal Reserve standing alone from the pack.
  • As a consequence of the monetary policy divergence, US dollar strength is driving a series of liquidity events.
  • The Strategic Fixed Income Team see the pressures in the financial markets this year as linked, due to the ‘liquidity withdrawal environment’, and not idiosyncratic, as many believe.
  • The uptick in inflation is, in their view, cyclical and not structural.

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Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

 

The information in this article does not qualify as an investment recommendation.

 

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Jenna Barnard, CFA

Jenna Barnard, CFA

Co-Head of Global Bonds | Portfolio Manager


21 Jun 2018
3 minute watch