Government Bonds – Page 7
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Asset Class ReportsPortfolio strategy – Fixed income
Last year ushered in a new era for global fixed income and credit markets. It was the worst, in terms of returns, for bond investors in years, but it signalled a regime change. Investors need to be prepared for structurally higher inflation and rates, as well as higher volatility. But for fixed income managers, this is an environment where value is easier to find. Our report looks at this new beginning for fixed income investors, and at how selectivity has become key in the high yield and loan markets.
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FeaturesAhead of the curve: Introducing the concept of a carbon risk-free curve
As global investors and companies progress towards their net-zero emissions targets, the concept of a carbon risk-free curve becomes increasingly relevant within the fixed-income market. In our view, this curve should provide a reference for evaluating the risk levels of bonds in relation to their issuers’ CO₂-equivalent (CO₂e) emissions and can therefore help investors to assess the impact of changes in CO₂e emissions on the yield spread of fixed-income bonds.
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Opinion PiecesAustralia: Super funds shift to fixed income
With fear of recession in Australia and globally, superannuation funds have gone into defensive mode. Cash and liquidity are two key considerations for CIOs, and some are waiting to take advantage of attractive market opportunities.
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FeaturesFixed income, rates & currency: Optimism fades on mixed data
January’s market optimism has been subsiding, as forecasts for inflation and US Federal Reserve policy shift the outlook further to the hawkish side. However, the macro picture is not clear. Markets hang on to every new piece of data to clarify the outlook, be it non-farm payrolls, the consumer price index (CPI) or the US Job Openings and Labor Turnover Survey (JOLTS).
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FeaturesIPE Quest Expectations Indicator March 2023
The next Ukrainian offensive will be in April at the earliest, as modern tanks will have arrived by then. US Republican pushback of ESG and climate-related investments are a new bone of contention in relations with the EU, already strained by the Trump presidency, and a bad sign for US-EU co-operation on China policy, an issue Japan seems to be ducking successfully. Aided by a soft winter, EU energy concerns have become quite manageable.
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Country ReportGermany: Financing the Energiewende
German professional pension funds like ÄVWL and BVK are keen to support the energy transition process
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FeaturesFrom soft landing to no landing
Once again, the US jobs market has shown its capacity to surprise forecasters, if not astonish them. January’s non-farm payroll numbers came in way above consensus forecasts, swiftly reversing markets’ dovish take on that week’s central bank actions, with bond markets handing back much of their earlier gains.
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NewsGermany roundup: Institutional investors return to German government bonds
Plus: Pension schemes up investments in Spezialfonds
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NewsNZAOA, BTPS, Church of England back climate performance tool
‘There is no rating or ranking or investment advice, just free, comparable data points for investors to use as they wish,’ says Barron
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FeaturesAhead of the curve: Time to automate collateral management
The resilience of financial markets has been tested several times in recent years, from the so-called ‘dash for cash’ at the start of the coronavirus pandemic in March 2020 to the spike in UK Gilt yields in September 2022.
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NewsSkandia invests SEK500m in first bond linked to new SWESTR rate
As long-term investor, Swedish pensions firm ‘appreciates transparency’ of new transaction-based reference rate
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Opinion PiecesViewpoint: Gilts crisis won’t undermine attractions of private markets for long-term investors
Many of the government’s ambitions to reboot growth in the UK economy require solutions which private assets are well equipped and prepared to provide in a timely manner
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FeaturesIPE Quest Expectations Indicator: December 2022
The Ukrainian offensives look to have petered out and a new initiative will be needed to maintain morale. The US government is once again gridlocked and another debt ceiling fight is likely. The EU seems ready even for a harsh winter, but there are signs of war fatigue. In the UK, Prime Minister Rishi Sunak has apparently learned from the Liz Truss debacle, quickly making the necessary political U-turns, in particular on climate change. Expectations for the COP27 meeting in Sharm El-Sheikh were low. Analyst views indicate increasing belief that the wave of interest rate increases is receding.
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Special ReportProspects 2023: Does zero China make sense?
Many investors are avoiding the People’s Republic, but they would do well to look at the reality
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News
Varma diversifies EM bonds away from govvies with $50m in corporates
Finnish pensions heavyweight makes first foray into EM corporate bonds, buying into HSBC AM’s bottom up fixed-income fund
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Special ReportESG: Leading viewpoint - rethinking sovereign bonds
Sovereign debt markets are not fit for purpose
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FeaturesUK sovereign debt in turbulent waters as challenges remain
The buttoned-up Gilts market has never seen or done anything like it. Trusty stalwart of liability matching for defined benefit (DB) pension schemes, the blue-chip security has already poleaxed a British chancellor of the exchequer just a month in office, and has effectively done the same to prime minister Liz Truss.
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Opinion PiecesAn uncertain outlook for UK pension journey plans
Following the Bank of England’s (BoE) emergency intervention announced on 28 September to stem the sell-off of long-dated UK government bonds, UK defined benefit (DB) pension funds were kept busy, as falling Gilt prices over the past weeks caused mark-to-market losses in liability-driven investment (LDI) strategies.
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NewsUK pensions committee launches inquiry into DB schemes with LDI
Inquiry will focus on impact of recent volatility in Gilt yields on DB schemes with LDI strategies and their regulation and governance
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NewsPrivate equity, mortgages enter net-zero alliance’s protocol in new draft
UN’s investor alliance expands guidance on treatment of sovereign debt in draft of third version of target-setting protocol
