- Rethinking fixed income investing when the easy money is coming to an end
Rethinking fixed income investing when the easy money is coming to an end
Friday 11 May 2018
Research / Market
Core fixed income allocation, usually comprising high-quality government and corporate bonds, has played a relevant role in diversified portfolios over the last few decades. In a 30-year bull market for bonds, this allocation has been a stable source of performance; it has, for a long time, provided interesting income and helped to limit the overall portfolio drawdowns. Investors now stand at a crossroads: changes in central banks’ monetary stances are resulting in the end of the easy money era driven by excess market liquidity. This change will provide, in our view, a fertile ground for active bond investors able to dynamically exploit opportunities in multiple fixed income sectors while it could challenge more traditional and static fixed income allocation approaches.
The US government shutdown becomes the longest in history
The US Government shutdown started on December 22 2018 is currently the longest ever, with little evidence of end in sight. In recent US history, since 1976, there have been 21 shutdowns, lasting from 1 to 21. The longest so far took place under Clinton on Dec 15,1995.
The Alpha and Beta of ESG investing
With the rising awareness around ESG issues worldwide, institutional investors have started to massively look into responsible investment. The latter has grown substantially in Europe and in North America in the past 5 years.
Global Investment Views - May 2018
CIO views: High conviction ideas from Amundi Global Investment Committee