Central banks remain key but governments could and should issue long dated debt

News reporters, political analysts and lawyers are certainly the occupations in most demand in this year of surprises. The 2016 ‘Almanac of World Events’ will be a mighty tome. On the whole, events have reinforced feelings of pessimism amongst investors, only lightened by the promise of cheap money forever. But it is not all bad. […]

25 July 2016 by Chris Iggo

insight

Read More...

European company bonds still a good bet for fixed income investors

If you’re a risk averse investor chasing income in today’s neverendingly-low interest rate environment, your hunt just got a little bit harder. In the days following the Brexit vote, yields on 10-year UK government bonds (gilts) fell below 1% for the first time in their history1. Yields on 10-year US bonds also went lower, down […]

14 July 2016 by Darius McDermott

insight

Read More...

Poor savings rates but you can do better

Savers are genuinely concerned about a possible rate cut from the Bank of England’s Monetary Policy Committee, but many savers are already stuck in poor-paying accounts that would struggle to see interest rates cut any further than they have been. HSBC and First Direct are two of the worst performers, with HSBC’s Flexible Saver paying […]

13 July 2016 by Anna Bowes

insight

Read More...

Low yields are the curse of our times

Low yields are the curse of our time, being inextricably linked with fears of deflationary growth. There is always scope for short term periods of yields moving higher but a return to significantly positive real yields on risk free assets relies on a fundamental policy change. There are more and more unintended consequences of the […]

11 July 2016 by Chris Iggo

insight

Read More...

Is it time to ditch EU and UK austerity asks Axa IM’s Chris Iggo. Long term bonds may be how to do it

The tumultuous events of the last week have left a very dark cloud over Great Britain. There is a political crisis, a constitutional crisis and potentially an economic crisis. Oh yes, for England at least, there is a football crisis as well. With resignations all around we give thanks for Mark Carney and his promise […]

1 July 2016 by Chris Iggo

insight

Read More...

Our view on fixed income hasn’t changed much – investors still need yield

The markets and the bookies got it wrong. Britain voted to leave the European Union. As expected, the decision triggered a huge risk-off move in financial markets with the pound sinking to its lowest level against the dollar since 1985.   Bond yields are lower because of the flight to safety. In the credit markets, spreads […]

24 June 2016 by Chris Iggo

insight

Read More...

Why it’s dangerous to expect too much from your investments

Warnings on falling investment returns periodically rear their ugly heads in this industry (and are often overly pessimistic!), so why have people been focusing on a recent report from McKinsey forecasting “substantially lower” returns on both stocks and bonds over the next 20 years*? The report purports that the past roughly 30 years (from 1985 […]

21 June 2016 by Darius McDermott

insight

Read More...

Bond markets confronted by the paradox of thrift

Knowingly or otherwise, bond investors have entered a deal with the devil. Capital will be preserved by policy, at the expense of the return the holders of capital receive on their bonds. As time goes on and the less confidence markets have in central banks being able to deliver reflation, the deal becomes even more […]

17 June 2016 by Chris Iggo

insight

Read More...

ECB negative rates may be counter-productive by encouraging cash hoarding

The Federal Reserve (Fed) may not hike rates next week but financial conditions are easier today than they were in December at the time of the first move. Unless there is more evidence that the US economy is slowing down, markets will have to price in some increases in rates after June. However, the Fed […]

12 June 2016 by Chris Iggo

insight

Read More...

LISA and the British obsession with home ownership

Earlier this week the Work and Pensions Select Committee voiced a concern that has been bothering some commentators within the pensions industry. The Committee warned that a new savings plan – announced in the March Budget statement and this week confirmed in the Queen’s Speech – the Lifetime ISA (LISA) could; “distract from [pensions] Auto […]

20 May 2016 by Steve Herbert

insight

Read More...
1 3 4 5 6