Friday 13 November 2020
News, Investment Talks, Market News
We use monthly credit excess return in the EUR denominated Investment Grade bond universe for regression analysis and factor picking. ESG was making its way to becoming a mainstream factor within the Investment Grade universe and when the COVID-19 stress hit the financial markets, it displayed a “hedge-like” behavior. We had previously identified that better ESG and lower cost of capital were related, however the realization of this feature in a stress environment is worth investors’ attention.
H2 Investment Outlook
Markets will be tested by the temporary vs. structural inflation narratives
June FOMC Review
At its June meeting, the Fed kept the federal funds rate unchanged, in line with market expectations.