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Fixed Interest

Looking Beyond Negative Yields

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Bonds will continue to provide benefits in terms of both portfolio diversification and return in the years ahead. However, with absolute bond yields at low or even negative levels in some markets, we acknowledge that these benefits may be muted relative to historical patterns. These dynamics heighten the need to take an active, global approach to a fixed income … [Read more...] about Looking Beyond Negative Yields

Public versus private debt – what’s the difference?

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With interest rates at historic lows, asset classes such as commercial real estate debt, infrastructure debt and corporate debt are increasingly attractive. But this is not just because of their potentially higher yields. In this article, we compare private debt with public debt (i.e. bond markets). We highlight some of the benefits of private debt investments and the main … [Read more...] about Public versus private debt – what’s the difference?

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