The FM Report

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Fixed Interest

Positive outlook for European bank bonds

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Accelerating inflation, the start of another Federal Reserve rate-hiking cycle and Russia’s invasion of Ukraine have triggered a rise in global bond yields and a widening of credit spreads. Although the economic outlook has deteriorated, European banks are entering the slowdown with healthy capital buffers and are in a position to benefit from the rising rates environment. … [Read more...] about Positive outlook for European bank bonds

Is there a bond opportunity hiding in plain sight?

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Bond markets have taken a hit over recent months, even lower risk areas. One of which now offers appealing value and a cushion against further set-backs. With the Federal Reserve (Fed) at the beginning of a hiking cycle, much commentary is focused on the potential for continued weakness in fixed income markets. As is often the case, markets try to anticipate the course of … [Read more...] about Is there a bond opportunity hiding in plain sight?

Potentially volatile European markets present opportunites

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Despite the severity of the pandemic across Europe, extraordinary levels of monetary stimulus have helped maintain relatively robust growth in the region over the last year or two. However, rising inflation has undoubtedly put pressure on policymakers, not just in Europe but around the globe, to rein in their supportive measures. The European Central Bank (ECB) has stated that … [Read more...] about Potentially volatile European markets present opportunites

Low Bond Yields: Repressed or Something More Fundamental?

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Treasury bonds do not get much respect these days. Institutional fund manager bond weightings are at their lowest levels ever in the 20-year history of Bank of America’s monthly fund manager survey. High profile investors treat them like the plague. The revulsion in sentiment is easy to understand. Who wants to own a negative real yielding asset? Based on the personal … [Read more...] about Low Bond Yields: Repressed or Something More Fundamental?

Green bonds growing in Europe

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Green bonds have been growing in popularity as a way to combat the negative effects of climate change across the globe. Similar to traditional bonds in structure, green bonds offer investors the ability to put their money to work in lessening greenhouse gas emissions. Major governments are now getting involved in this space—with European countries taking the lead. WHAT ARE … [Read more...] about Green bonds growing in Europe