Following the bond market’s recent beating, term yields have already priced in aggressive Fed rate hikes, positioning core bonds to effectively diversify credit risk.
An effective factor investing strategy should be both contextual and adaptable as markets change over time.
Strong funded ratios and higher interest rates are prompting many corporate pension plan sponsors to shift assets to LDI strategies.
Changes in the political and economic landscape are loosening the links in the global economy. New conditions will favor different strengths as businesses adapt.
In the drive for ESG investing, a gap has arisen between corporate bond and securitization markets. We see this as an opportunity to blaze new trails and influence better outcomes for investors, the environment and society.
In the wake of Russia’s invasion, social factors such as energy supply security, consumer protection and responsible sourcing demonstrate the importance of an inclusionary ESG approach.
Russia’s energy tentacles, intertwined throughout Europe’s power network, may prove difficult to excise.
The U.S. Federal Reserve met expectations and increased interest rates by 25 basis points.
Should the Russia-Ukraine conflict persist, it would lead to further tightening of financial conditions but is unlikely to deter the Federal Reserve from a 25 basis point interest rate hike in March. Tighter conditions will slow economic growth at the margins and constrain financial markets over the short term, but not over the longer term.
A new form of financing – commercial property assessed clean energy (CPACE) – to help property owners reduce energy consumption is gaining momentum, offering investors potentially attractive yields and aligning with ESG interests.
While it might seem better to focus on current so-called ESG leaders, we believe there is untapped value in the underappreciated ESG improvers.
The devastating events that continue to unfold in the conflict between Ukraine and Russia have led to steep price declines in both countries’ financial markets.