Bond investors sleepwalking into duration risk
Two asset managers have warned that bond investors, particularly those in passive vehicles, are too exposed to duration risk without realising it.
Macro News
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US equities soar on Fed’s dovish sentiment
The US equity market hit new highs, but bond yields are expected to fall after the US Federal Reserve voted to keep rates on hold at its latest meeting.
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AstraZeneca shares dive on big day for FTSE results
AstraZeneca’s plummeting share price was the biggest story in a morning flooded with company results on Thursday, with the FTSE index holding steady despite a wobbly start for stocks.
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Monier backs long-term EM growth story
Emerging markets should deliver roughly twice the growth of developed markets and the differential is set to grow, the head of investments at Lombard Odier Private Bank says.
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GDP estimate shows ‘notable slowdown’ in UK economy
UK GDP grew by just 0.3% in the second quarter signalling a “notable slowdown” in the domestic economy, according to the Office for National Statistics.
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BMO GAM: Top active managers trounce passives over 10 years
Research from BMO Global Asset Management’s multi-manager team, headed by Rob Burdett and Gary Potter, shows that the cream of the active management crop have outperformed the top passive funds over the long term.
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Greece re-enters bond market after three years
Greece has returned to the bond market for the first time in three years after issuing its first five-year euro-denominated bond at a yield of around 4.75%.
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BoE warns of ‘spiral of complacency’ over easy lending
The Bank of England has expressed concern at the UK’s increasing level of consumer debt after warning that lenders are in a “spiral of complacency”.
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Active managers risk missing out on $100trn mutual fund boom
Global AUM in mutual funds is predicted to exceed $100trn by 2020, but active managers have been warned to adapt to stay relevant during the boom by research agency Cerulli.
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IMF cuts UK growth forecast as business confidence dives
The International Monetary Fund has lowered its growth forecast for the UK to 1.7% in 2017, while IHS Markit recorded waning optimism in the UK private sector.
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High borrowing and economic fragility may hit austerity easing
The scope for the Chancellor of the Exchequer Philip Hammond to ease austerity may be limited as public sector borrowing has increased while the economy remains fragile, according to consultancy Pantheon Economics.
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Hot June leads to clothing spending spree
A warm June propelled UK retail sales for the second quarter of the year, with strong clothing sales compensating for a decline in food and fuel sales.