Conventional approaches to fixed income investing rely on bond yields to generate returns. Most of the returns come from accumulating portfolios of bonds to harvest yield.
2019’s rampant bond rally came to a halt this month as bond yields rose, causing bond prices to fall across most major bond markets.
Some central banks are pushing monetary policy into the upside down world of negative interest rates, but rather than success they are creating bizarre side effects.
How is it that traditional safe haven assets like gold, government bonds and the Japanese yen are all performing strongly this year, just as risky assets like equities, credit and emerging markets are also doing very well?
Conventional thinking about bond-equity relationships currently poses a paradox – the resolution to this seeming paradox is the changing bond-equity correlation.
The China economic slowdown story had been building behind the scenes long before markets decided to focus on trade hostilities with the US.
This Livewire exclusive discusses the global shift in central bank policy as a key driver of recent volatility and what to expect moving forward.
We’re normally circumspect about the “EM contagion” narrative as it usually ends up being more headline noise than substance, but this time we’re paying closer attention
We’ve been noticing early warning indicators of China risk flaring up and those risks have now become real.
Inflationary pressures have been building globally and particularly in the US. The rise in breakeven inflation rates over the past two months shows that markets have begun to price this in.