Central bank rate-cut pricing is eye-catching but deceiving
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Even after the late-year “Santa” rally, all-in yields in many credit sectors are near multi-decade highs, making it tempting to portfolio managers to have overweight credit allocations to maximize the yield opportunity. But credit spreads are relatively narrow and the distinct risk of an economic or financial market recession looms eventually, so managers might opt to underweight credit sectors.
Where we see opportunities in Asia ex-Japan equities
Europe must tread a fine line to avoid stagnation
Reasons for caution and optimism as we enter a new economic regime
And without a significant increase in risk?
An uptick in some prices could mean higher rates for longer
A flood of new global sovereign debt will affect market dynamics
Turnaround factors are forming to support emerging markets
The consensus view shift toward a mild downturn looks misplaced
Competition with China and consumer safety are key themes
Time to rethink fixed income portfolio
Now is not the time to wait on the sidelines
Hawkish stances risk overtightening and causing recession
The sector is in better health than prior to previous slowdowns.
Our investment framework is constantly adapting to the challenges of change
Macro risks have risen, but the outlook for Japan appears bright.
Rates offer alpha opportunities, dollar at risk of depreciation
With volatility likely to persist, an active approach remains critical