Amundi Convictions
What is Amundi Convictions?
At Amundi, we understand that it can be difficult to stay on top of everything that is happening in the market. Between geopolitical tension, inflation and rate hikes to name but a few it can be difficult for investors to make the right decisions. That’s why we created Amundi Convictions.
Amundi Convictions is your go to place for the latest information on the economy coupled with our investment views.
Our team at the Amundi Institute is carefully monitoring the markets and the economies we operate in to bring you the latest information. Our investment specialists are using this information to offer the best strategies for portfolio protection.
Our latest insights
US credit rating downgrade – what it means for investors
Fitch downgraded the US credit rating from AAA to AA+ with stable outlook on August 1st. Read this article to discover what could be the consequences for investors.
Emerging markets - combining resilience and strong growth
Emerging markets, thanks to their resilience and growth advantage, could become a possible investment destination in 2023. Read this article to learn why.
Money market funds - back under the spotlight
The repricing of fixed income markets in 2022 made money market funds more appealing to investors. Read this article to learn why.
The Asian giants – consequences for investors
India and China are transforming their economies, leading to a rebalancing of power at global level. Vincent Mortier and Monica Defend share their views on these two Asian giants.
India - The Asian Giants
India has been one of the main topics of the Amundi World Investment Forum 2023. Read here why it is considered as an unmissable investment opportunity.
Identify fixed income opportunities in uncertain times
During periods of volatility, investors can capture fixed income opportunities with the right approach.
Previous articles
Fixed Income - how to face an adjustment period
June 2023 - 2 mins read
Green bonds – providing a range of benefits beyond financial returns
May 2023 - 2 mins read
India – a wide range of opportunities for investors
May 2023
Fixed Income: why now is the time to be agile
May 2023 | 2 min read
India - the drivers of long-term growth
May 2023 | 2 min read
Liquidity solutions - balancing inflows and outflows in all market conditions
May 2023 | 2 min read
The four themes behind the shift from the West to the East
May 2023 | 2 min read
Liquidity solutions – the importance of being hedged
May 2023 | 2 min read
Why now might be the time to consider money market funds
April 2023 | 2 min read
Liquidity solutions – balancing diversification, yield and risk control
April 2023 | 2 min read
2023 could bring some light to investors after the storm
Dec 2022 | 3 min read
Investing in Emerging Markets after the great repricing
Oct 2022 | 3 min read
Keep your seatbelt fastened, we are approaching turbulence ahead
Sept 2022 | 3 min read
Income as a source of resilience
Low interest rates and higher inflation continue to pose an increasing challenge for investors and savers. Moreover, fluctuating markets can trigger uncertainty when investing in shares. Despite this many investors would like to benefit from a diversified1 portfolio across financial markets, while minimising risks.
1Diversification does not guarantee a profit or a loss
Amundi, November 2022
Fixed Income
Following the “great repricing” of the first half of the year, we are now witnessing a gradual regime shift. Previously, markets and Central Banks were reacting aggressively to inflation and rising rates volatility. As we enter the “stabilisation” phase, markets are now focusing more on growth prospects and less on inflation. The repricing of the rate curve is mostly completed, and yield volatility decreases gradually. Central Banks have now become more hawkish in their fight against high inflation, bringing a deterioration of the growth prospects. Bonds yield are now stabilising again, and we believe could be used as a source of diversification* and protection against recession fears.
Key factors for renewed interest for bonds
Considering the macroeconomic environment, we consider three key factors for the renewed interest for bonds:
1
Higher yields, as current levels are now attractive, investing in fixed income is paying off.
2
Macro hedge, as bonds could provide portfolio protection in case of risks of fragmentation in the Eurozone and/or political uncertainty, or a Fed induced recession in the US.
3
Diversification*, as the negative correlation between bonds and equities may come back in this period of volatility, making bonds more appealing.
Fixed income may now provide interesting entry points. Bonds should be allocated within a diversified portfolio, favouring selection and some particular segments such as core government bonds, keeping flexibility and looking for quality in the credit space.
*Diversification does not guarantee a profit or protect against a loss
Amundi, November 2022
Inflation
Inflation is on everyone’s mind. We experience it each and every day. Whether we are in the supermarket buying groceries or fuelling our car we each see the prices increasing on everyday items.
Inflation is not showing signs of subsiding – activity is slowing but economies are still growing. Central Banks are attempting to curb inflation through rate hikes. Theses hikes may lead to a recession but it could take a while for these rate hikes to effect growth1.
1 Amundi Global Investment View, August 2022.
Visit our dedicated Inflation page
Research Papers
Portfolio Strategies in Inflationary Times
Inflation is back: read more of Amundi Institute's research
Real Assets in an Inflationary Context
We are shifting towards an environment of low growth and high inflation. Why should investors consider real assets as a potential solution?
War and Net Zero Opportunities across the Commodity Universe
We are each experiencing inflation in both our personal and professional lives. We have been noticing an increase in commodity pricing, but what’s causing these elevated prices?
Absolute Return Strategies in an Inflationary Context
As markets grapple with prospect of recession or possible stagflation, investors may wish to consider an absolute return strategy to protect the real value of their capital. What are the potential benefits of absolute return funds?
Convictions powered by Amundi Institute
Get access to Amundi Institute's high conviction ideas and asset class insights to help you build your portfolio.
Important information
Unless otherwise stated, all information contained in this document is from Amundi Asset Management S.A.S. and is as of end of September 2022. Diversification does not guarantee a profit or protect against a loss. The views expressed regarding market and economic trends are those of the author and not necessarily Amundi Asset Management S.A.S. and are subject to change at any time based on market and other conditions, and there can be no assurance that countries, markets or sectors will perform as expected. These views should not be relied upon as investment advice, a security recommendation, or as an indication of trading for any Amundi product. This material does not constitute an offer or solicitation to buy or sell any security, fund units or services. Investment involves risks, including market, political, liquidity and currency risks. Past performance is not a guarantee or indicative of future results.
Date of first use: 22 November 2022
Doc ID: 2443252