Fixed income
…and I thought we’d seen it all in 2008. We have updated our views on global credit to a more positive outlook in recognition of both the meaningful change in valuations this month and the significant policy response that has been delivered to combat the economic fallout from COVID-19. The speed and magnitude of the move has been breath-taking.;
ESG and long-term themes
Most of us are trying to do something to help the environment – indeed, for Christmas I was given not one, not two, but THREE reusable mugs/ thermos flasks (clearly people know of my coffee addiction). But how much impact are we really making, as opposed to just “virtue signalling” or, as my husband would put it, “helping the penguins in Somalia” (sounds great but is actually meaningless). ;
Economics
This is an extraordinary moment for investors. As at the beginning of December, many asset classes have notched up double-digit returns over 2019, with equities hovering close to record highs even as trillions of dollars of bonds offer negative yields.;
Fixed income
Corporate bonds have benefited from extraordinary monetary policies. But as the probability of global recession rises, we worry that vulnerabilities within credit markets could disturb this relatively blissful environment for investors.;
