Money Marketing: — Jim Leaviss: Finding value
in global bonds.
The sharp sell - off
in global bonds following the US election seems to confirm their fears.
A spike in bond yields and a clear change of direction from central banks means there isn't a lot of value
in global bond markets, a fund manager told CNBC on Tuesday.
Analysts attribute the turbulence
in global bond markets to emerging signs of firmer economic activity and expectations of higher inflation.
Following the election in the United States, there has been a rapid back - up
in global bond yields, partly reflecting market anticipation of fiscal expansion in a US economy that is near full capacity.
That has been blamed for creating a bubble
in global bond markets, and Boockvar said there are signs the air is starting to leak out.
Furthermore, we would expect any rises
in global bond yields to be at least partly imported into Canada — with possible implications for the Canadian dollar — and with an uncertain net effect on our economy.
A rise in the US 10 - year yield to 2.998 % (4 - year high) was dollar supportive, and rise
in global bond yields also weighed on gold with the German Bund (0.603 % - 0.639 %), UK Gilt (1.49 % - 1.53 %) reaching 1 - month highs.
When you invest
in global bond funds, however, you will take on additional risk.
Central bank intervention
in global bond markets has «crowded out» many traditional fixed income investors, driving them to seek yield and income from non-traditional and riskier asset classes such as high yield, emerging markets debt, leveraged loans and private credit.
Banking rules introduced in the wake of the last recession have worked to constrain liquidity
in global bond markets.
The correlated change
in the global bond markets is significant, and if it runs another one percent or so, could derail the equity markets.
The U.S. has often led moves
in global bond yields, such as during the «taper tantrum» of 2013 when then Federal Reserve Chairman Ben Bernanke sparked a global bond market rout by signaling the beginning of the end of quantitative easing.
An actively managed strategy with the flexibility to invest in the best opportunities
in global bond markets, offering investors the potential for total return in different market environments - including periods of rising rates.
We see global reflation running further in 2017 and spurring a modest rise
in global bond yields.
Following the Trump victory, there has been a rapid back - up
in global bond yields, partly reflecting market anticipation of fiscal expansion in a US economy that is near full capacity.
Read more market insights
in our Global bond strategy.
Both are being supported by accommodative credit conditions, which have eased in recent weeks mainly owing to sharp declines
in global bond yields.
U.S. protectionism (very real for Canada) and a renewed surge
in global bond yields (a less immediate concern).
Investors should also consider unconstrained strategies
in global bond markets, we believe, as a way to increase the opportunity set and protect capital during a period of rising interest rates.
The recent jump
in global bond yields represents a reflationary reawakening just a year after deflation and recession...
Combating climate change needs money that is only available
in global bond and equity markets, which are heavily invested in fossil fuels; public finances are needed to make them change direction
Not exact matches
A better option,
in Hallett's opinion, is an actively managed
global bond fund,
in which the manager can move
in and out of countries as he or she sees fit.
Global bonds went on a wild rollercoaster ride last week, with the price swings being particularly abrupt
in the U.S. and German markets, which have long been viewed as the safest and most liquid
in the world.
LONDON, April 24 - Less than two weeks after the latest round of U.S. sanctions plunged Russia's rouble to 16 - month lows, some
global funds have already stepped back
in to buy rouble - denominated sovereign
bonds and take advantage of the weaker currency.
According to the
Global Market Strategy team at JP Morgan, pension funds and insurance companies
in the G4 - United States, euro zone, Japan and Britain - will buy at least $ 640 billion of
bonds this year.
«A bear market
in bonds calls for more than a
global cyclical upswing, as not all forces that dragged yields down over the past decades have suddenly vanished,» argued Peter van der Welle, a strategist at Robeco.
Dip
in share prices and
bond yields, along with the upcoming election has had an impact on the state of the
global economy, causing a setback
in business travel growth.
It so happened that Bill Gross, the portfolio manager of the Janus
Global Unconstrained
Bond Fund, made that 2.6 % call
in a Bloomberg interview on Friday and then
in his monthly investment letter on Tuesday.
A sharp sell - off
in bond markets this week spilled over into
global equities with jitters that a near 30 - year run bull run for fixed income could be coming to an end.
Lewis, fund's chief investment officer, spent nine years at Citigroup as a director of the bank's
global special situations group, a $ 5 billion prop - trading group that specialized
in distressed debt, high - yield
bonds, and value equity.
In fact, in the past five years, Bond No. 9 has gone global, seeing substantial sales in the U.K., Asia, Latin America and the Middle Eas
In fact,
in the past five years, Bond No. 9 has gone global, seeing substantial sales in the U.K., Asia, Latin America and the Middle Eas
in the past five years,
Bond No. 9 has gone
global, seeing substantial sales
in the U.K., Asia, Latin America and the Middle Eas
in the U.K., Asia, Latin America and the Middle East.
«Europe has a long, if occasionally somewhat troubled, history of being strongly engaged
in global affairs — aid and development is a part of this,»
Bond, a network of over 400 international development organizations and the U.K. Aid Network, said
in a statement to CNBC this week.
From starting his business from a small salon
in London's
Bond Street, Sassoon talks about how he revolutionised the hair industry
in the 1960s, how he grew his
global hair empire and turned his name into a multi-million dollar
global brand with salons, a hugely successful product line and academies around the world.
If Brexit - like sentiment
in other nations leads to restrictions on the flow of trade and labor, he adds, «that is going to create greater uncertainty and volatility» — at a time when some commentators believe that
global stock and
bond prices are overdue for a tumble.
While many analysts were predicting
bond yields to rise this year as
global economies improve, the suddenness of the move was a large factor
in the recent stock market selloff.
Bonds are a
global phenomenon with even bigger bubbles elsewhere, particularly
in NIRP countries, such as those
in Europe, and
in Japan.
The European Central Bank is all but certain to cut back on its
bond - buying stimulus on Thursday, one of the biggest factors supporting the rally
in global stock markets
in recent months.
In addition, interest rates on U.S. Treasury
bonds are used as barometers for determining
global economic health [9], and as pegs for many other interest rates, including American mortgage and student loan rates [10, 11].
Fidelity Strategic Funds are multi-asset-class strategies that seek to address key income needs —
bond income from
global sources, non-
bond income, and real return — by investing
in a diversified mix of fixed income and / or equity investments chosen for their historical combined performance.
A move up
in the US 10 - year
bond yield (2.965 % - 2.995 %) and mostly firmer
global equities were a headwind for gold.
That's boosting the outlook for inflation, causing the rout
in bonds to deepen
in Europe after more than $ 1 trillion was erased from the value of the
global debt market.
Or,
in the other direction, consider the
global bond market taper tantrum
in 2013.
The main distinction between
global and international
bond funds is that the former invests
in U.S. securities whereas as international
bond funds do not.
Global bond markets had been
in a bull market for around 2 decades, having had arguably their best run
in history.
Global bond yields have declined significantly
in recent months, but at a pace and uniformity that suggests either a climax
in yield - seeking or growing concerns about economic weakness.
Included
in the EMBI
Global are U.S. - dollar - denominated Brady
bonds, Eurobonds, traded loans, and local - market debt instruments issued by sovereign and quasi-sovereign entities.
In our August letter we pointed out that the turnaround in global economic growth would continue to reduce central bank enthusiasm for QE (bond purchases) and lead to sustained upward pressure on bond rate
In our August letter we pointed out that the turnaround
in global economic growth would continue to reduce central bank enthusiasm for QE (bond purchases) and lead to sustained upward pressure on bond rate
in global economic growth would continue to reduce central bank enthusiasm for QE (
bond purchases) and lead to sustained upward pressure on
bond rates.
In our August letter we pointed out that the turnaround in global economic growth would continue to reduce central bank enthusiasm for QE (bond purchases) and lead to sustained upward pressure on.
In our August letter we pointed out that the turnaround
in global economic growth would continue to reduce central bank enthusiasm for QE (bond purchases) and lead to sustained upward pressure on.
in global economic growth would continue to reduce central bank enthusiasm for QE (
bond purchases) and lead to sustained upward pressure on...
We believe a step - up
in risk aversion has led to a structural rise
in precautionary savings, further dragging down
bond yields across the curve — a trend that won't quickly change, as we write
in our
Global macro outlook The safety premium driving low rates.