Improvement in ratings quality in recent years may buttress the high yield bond market’s performance in 2022, even as returns across asset classes could become more subdued.
The strong inflation report combined with employment data will likely prompt the U.S. Federal Reserve to begin hiking its policy rate in March.
U.S. yields surged to begin 2022 as financial markets gird for central banks to begin tightening monetary policy.
Liquidity tiering may provide an attractive alternative as SEC proposals curtail capabilities of money market funds
A long-term focus and a rigorous approach to portfolio construction may help investors navigate uncertainty as the mid-cycle expansion advances.
The Federal Reserve pulls forward rate hike expectations and doubles the pace of tapering in an effort to provide more flexibility to react in 2022.
By Tiffany Wilding |
The risks of continued elevated inflation likely have the U.S. Federal Reserve considering material changes to its policy path.
Uncertainties that caused U.S. Treasuries to rally and yield curves to undulate in November may persist and could contribute to volatility into year-end.
Disruptive trends and fatter tail risks highlight the importance of selection within asset classes and regions.
With major central banks likely to exercise patience in the face of price pressures, inflation-linked assets may be attractive allocations.
By Greg E. Sharenow |
The recent surge in oil and natural gas prices highlights the interconnected nature of energy markets, as well as the complexities of transitioning away from fossil fuels.
While the recent energy crisis has disrupted China’s economy, we do not expect a significant drag on growth.
By Tiffany Wilding |
Stronger-than-expected U.S. inflation data in October may prompt the Federal Reserve to consider tapering faster and hiking sooner.
The Federal Reserve navigated its tapering announcement without much market volatility, but faces the challenge of managing rate expectations amid elevated inflation risks.
The volatility that has roiled short-term bonds signals a shift in expectations for central bank policy in developed markets.
A radically different macro environment should yield good opportunities for investors able to navigate the difficult terrain.
We do not expect widespread contagion across China’s real estate or banking sectors despite the challenging outlook.
By Tiffany Wilding |
Elevated risks to inflation expectations appear to have prompted Federal Reserve officials to revise their policy rate hike projections higher.
![{{result.Name}}]()
![{{result.Name}}]( "{{result.Name}}")
By |
{{result.FirmApprovalName}} Control Number: {{result.FirmApprovalCode}} | Firm Approval Expiration Date: {{result.FirmApprovalDate}}
—
{{result.CustomText}}