What began as a gradual climb in nominal yields from the summer accelerated in February. Moves of this speed are rare, so we dedicated an ISG meeting to ask why global yield curves have steepened so quickly and what the implications are for fixed income asset allocation.
Portfolio managers Guy Barnard, Tim Gibson and Greg Kuhl, explain why they believe the REIT ‘reopening rotation’ trade has created an attractive opportunity to buy quality compounders offering sustainable growth, driven by long-term structural tailwinds.
The recent steep rise in yields has unsettled markets but Nick Maroutsos and Andrew Mulliner, Portfolio Managers within the Global Bonds Team, believe the Fed and other central banks are in no mood to abandon their accommodative stance.
Reflation has been the hot topic in the markets since the start of the year as inflation expectations have been rising rapidly on prospects of economic recovery. In this webcast, Jenna Barnard and John Pattullo dissect the reflation narrative, sharing their contrarian views on the subject.
Monetary financing of the fiscal deficit – revised up significantly for 2021-22 in yesterday’s Budget – threatens a balance of payments blowout and much higher inflation, argues Simon Ward, Economic Adviser.