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Fixed Interest

Time is running out to solve China’s debt bubble

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Many investors are focused on the outlook for trade talks between the US and China, fearing an all-out trade war which would negatively impact global equity markets. But investors are underestimating the mounting problems caused by the rapid expansion of credit in China in recent years. Only radical solutions now remain to resolve China's credit bubble. The fear of a … [Read more...] about Time is running out to solve China’s debt bubble

Global Debt: the albatross around our necks

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We have covered this issue extensively (some might argue exhaustively), in recent times, but in the light of the move above the psychologically important (to some), 3% level in US 10-year bond yields it might be worth looking at the issue afresh, this time from a slightly broader perspective. The Fed continues to look to raise interest rates, reaching 1.75% last March, with … [Read more...] about Global Debt: the albatross around our necks

How rising interest rates affect returns from non-government bonds

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Rising interest rates and tighter monetary policies are firmly on the agenda globally. The US Federal Reserve in particular has been paving the path for hiking interest rates and many investors expect at least three further rate hikes this year. In the UK, the Bank of England raised its interest rates for the first time in a decade back in November. In other parts of the … [Read more...] about How rising interest rates affect returns from non-government bonds

Five reasons to be fearful for the bond market

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Traditional fixed income markets face a number of challenges over the coming year. we highlight five reasons to be fearful for the bond market. Four of these relate to worries about the potential returns from the highest quality bonds in the developed world, The final one is the fact a competitor asset class appears to be offering superior returns – again. Inflation and … [Read more...] about Five reasons to be fearful for the bond market