LATEST INSIGHTS
Strategic Fixed Income: Japanification — Europe first and now the US
John Pattullo, Co-Head of Strategic Fixed Income, explains how the suppression of volatility by the US Federal Reserve during the Covid crisis has led to the Japanification of the US corporate bond market.
A superfluous tweak to the Fed’s mandate
Nick Maroutsos, Co-Head of Global Bonds, believes that despite a shift in policy, the US Federal Reserve will likely not have to worry about watching inflation climb above its target of averaging 2% over the long term.
RBA to markets: “We are still here”
Portfolio Manager Dan Siluk explains that, despite economic conditions appearing to stabilise throughout much of Australia, the Reserve Bank of Australia felt compelled to recommence bond purchases to establish its credibility with respect to its yield curve control programme.
So… what about inflation?
John Pattullo, Co-Head of Strategic Fixed Income, shares his views on the most frequently asked question by clients these days: “what about inflation?”
Fed Watch: despite high marks, Fed still has issues to resolve
Co-Head of Global Bonds Nick Maroutsos gives the US Federal Reserve high marks for ensuring properly functioning financial markets but believes that work still needs to be done to support households and small businesses most vulnerable to the economic disruptions caused by the COVID-19 pandemic.
A negative fed funds rate: not yet willing – or needing – to go “there”
Co-Head of Global Bonds Nick Maroutsos states that even without negative interest rates, bond portfolios must work harder to achieve desired results.
Credit resilience but confusion surrounds longer-term inflation outlook
Jenna Barnard, Co-Head of Strategic Fixed Income, shares the Strategic Fixed Income Team’s current thoughts and views on bond markets, and addresses the most frequently asked question: is inflation on the rise?
Credit spreads — from reassuringly expensive to scary cheap, and now: just cheap?
John Pattullo, Co-Head of Strategic Fixed Income, believes that over the last month corporate bond spreads have gone from scary cheap to just ‘kind of cheap’ now. As the dust settles in the markets, he remains optimistic that there are opportunities to be had going forwards.
Keep a close eye on the real economy
Why financial markets should ultimately be focused on the outlook for households in consumption driven economies like the US.
Strategic Fixed Income view — credit has been the place to be of late
Jenna Barnard, Co-Head of Strategic Fixed Income, remarks on the significant rally in credit markets over the last week, with healthy investment grade issuance volumes and even the US high yield market open for new issues. Support from the authorities trying to help companies avoid default has accelerated the sharp market recovery.
Disruption simply exaggerating existing structural trends – Strategic Fixed Income view
John Pattullo, Co-Head of Strategic Fixed Income, provides a brief update on the team’s current thoughts on the markets and the opportunities they see going forward, while explaining the reasons for their optimism.
Liquidity crisis begins to heal — Strategic Fixed Income view
The coronavirus crisis continues to impact economies and markets but the liquidity crisis is seemingly beginning to heal. Jenna Barnard, Co-Head of Strategic Fixed Income, shares her views on the latest developments and explains why the team favour investment grade bonds now and how they are less bullish on government bonds going forward.