Wealth managers batten down the hatches as US enters technical recession
Tilt towards quality and defensive plays like short dated credit and govvies alongside rising cash levels
Tilt towards quality and defensive plays like short dated credit and govvies alongside rising cash levels
With markets aggressively pricing in Fed tightening, value could be returning to global bonds, says T Rowe Price’s Quentin Fitzsimmons
Four out of five funds have set exposure to long-dated government bonds
‘There will come a time when central banks can’t keep the plates spinning’
Climate change and human rights abuses land governments on negative screening lists
Duration and inflation risk are raising questions about whether government bonds can continue to be viewed as safe haven assets in the current market environment.
Government bonds are “frighteningly risky” and the assets to avoid according to Ashley Lynn, an analyst at Orbis Investment.
The higher a country’s ESG rating, the better its government bonds perform, MSCI has found.
An impasse over raising the debt ceiling could see the US hit the financial buffers in early October failing to meet around 23% of its short term obligations, an analysis by Washington think tank the Bipartisan Policy Centre has said.
Nomura Asset Management’s Dickie Hodges isn’t calling an end for the risk rally just yet, despite the recent government bond rally after president Trump’s policy blunders.
The spreads of French and Italian government bonds versus German bunds have risen by 600 bps since autumn due to rising political concerns. Fund managers are divided on the question which of the two now presents a buying opportunity. But does that actually matter at all?
Eurozone investment grade and government bonds continued to see outflows as inflation expectations rose, according to Bank of America Merrill Lynch research.