Global growth in the second half of 2017 will help determine whether investors keep shifting assets out of bonds and into to equities, said Thomas Kwan, the chief investment officer for Hong Kong-based Harvest Global Investments.
Thanks to the end-of-year ‘Trump rally’, 2016 has been a pretty good year for investors in risky assets. However, not all asset classes have fared so well.
Investors took their money out of emerging market (EM) assets in November at the fastest pace since the 2013 Taper Tantrum, according to the Institute of International Finance (IIF).
Canada Life International has extended the availability of capital redemption bond (CRB) options to its Dublin-based trust products offered by Canada Life International Assurance (Ireland).
Whereas equity markets have quickly shrugged off the result of the US presidential elections, peripheral bond spreads have widened since. Trump’s election seems to have reminded markets of the possible consequences of an Italian no-vote in next week’s referendum.
European equities are now on their longest net outflow streak since 2012. But it is not just equity funds that are being sold off. Bond funds are also under increasing pressure.
Short duration or long duration? That is the question. And the answer, for past few years, has been ‘long’. It’s worked a treat for some. Could things be about to change or is the raging 30-year plus bull market going to go on for longer?
Eurozone investment grade and government bonds continued to see outflows as inflation expectations rose, according to Bank of America Merrill Lynch research.
The death of the 30-year bond bull market that has formed the backdrop for most City careers has been predicted many times. It has yet to come to pass. But, if one were looking for signs that it is reaching an inflection point, the last seven days has proved a fertile hunting ground.
Massive, opportunistic M&A activity doesn’t tend to be a characteristic of the bottom of a cycle. Still-standing majors, snapping up capitulating minnows is common, but two behemoths joining forces is usually left for times when shares are expensive and can do a lot of the heavy lifting.
There is a change happening in the City. One that would not be out of place in an episode of the Twilight Zone.
PIMCO has launched the PIMCO Global Investor Series US Investment Grade Corporate Bond Fund.
