Top Research Picks for May 2023
Let's talk about bonds in this edition of our "Investment Research Digest". Here are our top research picks for the month of May:
2023 - still the year of bonds?
As per AXA IM, the ‘bonds up and equities down’ relationship is working well recently. Read More
"A yield of 3% is in sight for US Treasuries while, for anyone with an appetite for even more duration, 30-year gilts trade well below par," says Chris Iggo, CIO of AXA IM Core.
Focus on EM bonds
How are inflation and monetary policies impacting emerging market bonds? Manulife Investment Management examines the effects of the present macroeconomic situation. Read More
“Central banks from EM countries have generally seen an even greater magnitude of tightening, having begun the process months ahead of those in developed markets,” writes Roberto Sanchez-Dahl, Senior Portfolio Manager, Manulife IM.
Finding the rate pivot potential
UK and European sovereign bonds are likely to benefit from declining inflation, says Alliance Bernstein. Read More
"As consumers suffer the biggest inflation hit in 50 years, bond investors must anticipate how quickly prices will stabilize, when interest rates will fall and which fixed-income markets can provide the best pay-offs," says John Taylor, Director Global Multi-Sector, Alliance Bernstein.
领英推荐
European Bonds: looking East
As per Carmignac, bond investors seeking diversification could find it in Eastern Europe. Read More
“In this new geopolitical order, some countries in the region, benefiting from this trend and boasting more solid fundamentals,?offer attractive long-term opportunities, such as within the Hungarian and Romanian bond markets,” says Carmignac.
Higher interest rates and corporate bonds
Corporate bond issuers face a higher cost of borrowing. Schroders analyses what this means for investors. Read More
“Corporate bond investors can take some comfort from aggregate interest coverage ratios (ICR) starting from a point of strength and corporate bond refinancing requirements being well spread out,” writes Harry Goodacre, Strategist at Schroders.
Driving Asia's ESG transition
Abrdn believes that labelled bonds will remain an important opportunity for investors wanting to drive Asia’s ESG transition.
“Green, social, sustainability and sustainability-linked bonds are now front and centre of sustainable fixed-income strategies…Collectively referred to as ‘labelled bonds’, this asset class offers investors a key avenue to support and drive Asia’s transition to sustainability,” writes Henry Loh, Head of Asian Credit at Abrdn.
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